Kicked to the Curb?

[Frank Stastny]

Two of my biggest concerns:

I only have one concern and it is A HUGE CONCERN.

...that the "uninformed" people who voted for him are still "uninformed" (I'm holding back) and are going to vote for him again.

 

[Guest]

Whining, moaning, and complaining may feel good, but won't do any good.

Things change... for better or worse. There is not much "little people" like us can do about it.

I simply do not see a groundswell of public sympathy for insurance agents of any kind. I'm not saying we are not liked personally or professionally; it's that people just don't see a huge value in what we do and even if they did, I don't see anyone willing to demonstrate on a cold winter day outside the Capitol on our behalf.

The political establishment makes decisions based on money, as Dave020 said. Corporate interests "own" both the state and federal governments. At one time it was the railroads, later on it was the unions, later on it was the military-industrial sector, now it is the banks and Wall Street (of which the large carriers are part of.) I don't know what will be next but I would not be surprised to see the tech industry become more influential in the years to come.

No matter what happens with health care, I just don't see where health agents are going to have much of a stake in the sector. The carriers don't like us, they feel they don't need us, and the regulators see us as premium-increasing bloodsuckers.

Add to that mix the facts that health agents are NOT organized, have have neither an eloquent spokesperson, nor a dedicated association or union (NAHU? Ha!) nor do we control a pot of money we can use to bribe with (like NAIFA.)

When I was first married in 1981 and we moved here my first friend was a guy who sold pension plans or something like that. One day the Reagan administration passed some law (I think it was TEFRA or something that sounded like that) and overnight the guy was out of biz. Mentally he never recovered. It just "ate" him alive... and he died not too many years later of cancer... he could not have been more than 50.

My point is that perhaps it is time to throw a handful of dirt on the health insurance coffin, wipe our eyes, and just walk away and "get on" with life.

For those of you who have the ability and energy to form a "mega-agency" that can do large volumes of apps at very low margins via a call-center or maybe dozens of low-paid, part-time "order takers" the future might be bright. I don't know. But I am fairly certain that the future for the rest of the health-agent sector is not going to be very bright.

You know the saying. It is better to light a single candle than to curse the darkness. Ed (Chumps) jokes here to "Leave health care now. Don't wait!" Well, I think for most of us it is good advice. I took it last year when my comp was cut in half and spent most of this year retraining.

The skills that health agents have are transferable to other sectors. I don't think most of "us" will starve selling traditional life or DI or FE or LTC, etc. Maybe there is an income paradigm selling what the health GAs are flogging us with... ancillary product-packages... dental, vision, etc. I don't see it but I've not run the numbers.

One thing I'm certain of is that what has happened to our comp in IFP will be followed by similar cuts in Medicare, and certainly group (which will go to zero when all our small group clients send their employees to the exchanges.)

Look at the calendar.

It's a new year. I think it is time to turn our backs on the past. We can raise our glasses and drink a toast to the good 'ole days... but at the same time we should drink one to "better days ahead."

As they say on ESPN Monday Night Football, "C'mon Man!"

Look. There are 10,000 boomers like me turning 65 every DAY. They need help... and they want help. Are you going to tell me you can't retrain yourself to help them make sure they don't outlive their money? It's their biggest fear. How do I know. Ask me how old I am. (In dog years... it's dead!)

Kicked to the curb? Sure. But I believe most of us can pick ourselves up, dust ourselves off, and find a good income in another sector of the industry... or leave it entirely and use our sales skills in another industry.

(I told my wife (of 30 years now) that I wanted to quit this biz and become a Mary Kay rep. She simply did not see the "sales concept" of me going to young women's homes and putting body-lotion on them. I don't know why. Sounded like a good op to me! Wives. Can't live with 'em, can't shoot 'em!)

So my message is to, as the song says, look on the sunny-side of the street. There is plenty of opportunity out there. It may take a year or two of "hard times" to retrain and re-deploy, but it is surely within the capacity or ability of most health agents that I know personally as well as most of those in this venue.

I've done it. There is no reason you can't as well. Just "do it." If you fail you fail. So what. You know how many failures Edison had before he had a viable light bulb?

You can do this. It's a new year, a new dawn... you can do this.

Al
My contact info is at this site.

A good man measures his religion by comfort and faith. Nor does he proselytize or demean another's religion. We are all brothers and sisters, just heading to a different cloud. Let this be our collective New Year's resolution. - stormtracker

Well I for one thinks this makes sense. Can't just roll over and die right? Plus, it's not like we haven't been warned that this was coming. I know agents who are poised to be a mega-agency perhaps, ready to take it on. We aren't here, but have a large block the over 65 market so that most likely be our focus. That or Mary Kay, or both huh? Not at the same time though, don't want to commit any CMS violations.

I thought it was interesting that this was even an article NOT in an insurance publication. Surprised they even were interested in agents enough to be interested in writing about it.

 

[xrac]

Hi guys!! I cant seem to find a way to post a new thread

It ain't hard to do!

 

[Dave020]

I am finding in talking with under 65 people (many on a daily basis) that, at least in CA, consumers are expressing two concerns--the possible lack of experienced agent assistance and the uncertain cost of health coverage under PPACA. The idea of two-week-wonder navigators is laughable to them (I really can call Fish & Game for this??). The possibility that Gold could be more than their current HIPAA rate and they might only be able to afford Bronze is unsettling as well.

Consumers I talk to in general like some of the ideas of PPACA and agree that reform is necessary.

Unfortunately they and I tend to agree that the "throwing out the baby with the bath water" approach may be overkill and in the end not the best solution.

The other thing I have noticed is that while there is sympathy from the public for agent comp cuts and a potentially bleak future in under 65 health, people are starting to get a little frustrated with agents refusing to help them anymore. They understand it, but it doesn't solve their problem.

If agents aren't going to write IFP or small group, have a ready referral agent for them instead of telling them you simply can't/won't help them.

In my experience so far, people really don't understand what is going on and when you talk to them about it many don't like where some of this is headed.

 

[somarco]

So in 2008, 2.02% of premium went to commissions, versus 17.43% to staff compensation.

Close but no cigar.

The 17% includes overhead (rent, utilities, taxes, equipment . . .) as well as salaries and benefits.

That is going to bite the states big time.

In more ways than one.

If DC get's their way and plans are funneled through exchanges managed by the federal government there is a good chance the premium tax revenues collected by states will be sharply curtailed.

And who is to say Navigators must be licensed?

Do you think that when Tanisha answers the phone at 1-800-MEDICARE she has a license?

The real issue is, there's not a large enough trade organization to have a real impact for agents. They're spread across groups like NAHU, PIA, NAIFA, etc...

Maybe someone should start an association.

 

[Crabcake Johnny]

Well, it would be someone starting an association with a few million at their disposal to kick it off. I'm a bit light.

 

[somarco]

Well, it would be someone starting an association with a few million at their disposal to kick it off. I'm a bit light.

Maybe Rabbi can help. He seems to have found the pot of gold.

 

[Crabcake Johnny]

Maybe I can ask Tom - I'm sure he has a few hundred call centers up and running by now and is flush with cash.

 

[CHUMPS FROM OXFORD]

As some of you know...My Association has the money and experience to step in and observe. I'll keep a close eye on things.


Best Insurance Agent Association

 

[Frank Stastny]

As some of you know...My Association has the money and experience to step in and observe. I'll keep a close eye on things.


Best Insurance Agent Association

If you don't have a hooker on each arm and hundred dollar bills falling out of your pockets you might as well stay on the porch.