Is Selling Individual Health Insurance Viable with PPACA Looming?

[prankeapple]

I'm a new independent agent thinking about getting into the individual health insurance market but I'm wondering if I should even bother with PPACA on the horizon. Will agents be able to make decent commissions when everybody is just going to a health exchange?

 

[CHUMPS FROM OXFORD]

You know this is coming!

GET OUT OF INDIVIDUAL HEALTH INSURANCE SALES!

Yes,I have been talking (for many years) about how Exchanges will change the broker's landscape.

Yes...go into another part of the insurance business. Perhaps Med Supps.

 

[Full Throttle]

No one knows the answer, only speculation and the answer will vary state to state. If I was starting new, I would not focus on individual or small group health. Let the dust settle in the next 12 months, then make an informed decision. I would argue that even if there is some reasonable compensation, if you have many years ahead of you, your compensation will be under political attack until we have universal health care. JMO.

 

[Ann H]

I've been in the health insurance business for 32 years, and a multitude of times I've encouraged newbies, helped them get started, steered them in the right direction, and given them free leads. Helping a newbie succeed is one of life's delights.

I sure wish I could tell you the health insurance field is rich sod and you'll reap a bountiful harvest. But PPACA changed that landscape. Thousands of agents have left this business, and many more won't be able to survive the transition that is coming. To survive and thrive, you need to have a serious amount of experience, a solid book of current clients, referrals, a great reputation in the community and with carrier reps, and enough income or assets to make it through the drought. This isn't the time for a newbie to start in this field!

I recommend Med Supps or Life, or another related field. Then, when the dust settles, perhaps health insurance will be a good career choice once again.

 

[Prouddad]

Even if you're selling a decent amount (that's relative) of individual health plans, you must consider your "lost opportunity cost." We've already learned that you're not going to make much commission selling an individual plan.

How many do you need to sell each month to make it worth your while?
Are there other activities that you can focus on that will bring you a greater amount of profit for your time spent than individual health insurance will?

My answer is "yes," I should devote more time to activities with a higher ROI. Your answer may be different for you.

 

[davidcberry]

When President Obama and the DNC passed the PPACA, I adamantly stated that this was an insurance agent job killer. I agree that the commission reductions for Health agents is rather ridiculous considering the level of expertise. However, I changed my mind regarding the viability of selling health insurance in the new environment.

Here's the deal. It doesn't make sense to sell health insurance if YOU have to individually login to each carrier, complete the underwriting application, etc. At 5% - 8% commission (these are guesses), that means you'll be working for minimum wage if you work extremely hard and write larger non-subsidized policies. Stupidity--- right!

Here's my change in philosophy. Now that you know the rules, play it. Instead of quoting and selling everyone by yourself, look or a way to align your health business with a national marketing organization that has their own team call center. That way, you focus on marketing and filling the funnel. Let the call center phone jockeys do the rest. From there, you need to do your follow up with the client to ensure the deal was closed, track the sale, and cash your check. So, the moral to the story is to work smarter; not harder.

This sounds easy because it is. I recently signed up with ACAENROLL.COM. I want to see how well they do over the next 12 months and go from there. I'll try to remember and post my results. This is just my humble perspective. If anyone reading this forum as information on ACAENROLL, please post a response for everyone.

David Berry
TXINSURANCEPRO.COM

 

[Prouddad]

Interesting model, David. It may be similar to a firm that I use in California called www.healthcompare.com.

I perused ACAEnroll's website. I couldn't readily find the commission or fee schedule in spite of looking at a Broker's Agreement. Will you tell me your understanding of fee/commission schedules to brokers?

 

[somarco]

ACAEnroll is using Quotit for the IFP. Sure looks to me like they are selling direct to consumers and letting brokers do their own thing.

ACA Marketplace Enrollment - Home

 

[somarco]

US Health Advisors.


We offer several fixed rates versions, or Premium Rate Guarantee Periods, giving you a choice to lock in your rates for 12 or 24 months to help you control you healthcare dollars.

 

[HealthGuy]

wtf are these guys pimping? rate locjs LOL