Mandated ACA Commissions for 2017 ?
- Thread starter Yagents
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I'm willing to bet we could look at some posts from a few years back and find some predictions on commissions going away. This didn't catch all of us by surprise.
- 8,448
Here's one of the earliest threads predicting 0% Individual Health Commissions due to the burdens of the Affordable Care Act.
From 2009: http://www.insurance-forums.net/for...ated-loss-ratios-zero-commissions-t17116.html
I clearly remember a discussion from a few years ago where I stated that the need for brokers in this market would be grearly reduced or eliminated. My point was that products would become commoditized, with only a few plan designs, one or two carriers, and a robust web-based enrollment. Some on this forum were very verbal in their disagreement with me.
Nobody is shocked. Maybe newbie agents, but not seasoned ones. The posts that Allen referenced were pre-ACA, but there were plenty of posts after that where we all predicted zero commission, plus the fall of the whole market in 3-5 years. It's year 3. Some seasoned agents left the market early. Other seasoned agents stayed for the windfall, but built other streams of revenue in the meantime. But nobody was shocked by zero commissions, nor will they be shocked at the fall of the whole market, nor the new market that arises later to replace it.... Just because we discuss it and criticize it doesn't mean we are taken unawares! It's a topic worthy of discussion and criticism. But most agents who are still in this market are fully aware of what they are doing.
Obamacare is unsustainable in its' present form and will be replaced with something that is NOT single payer. I have no idea what will be next but you can bet it won't involve a lot of consumer choice and will have zero or near zero agent comp.
- 8,448
The Affordable Care Act was a "done deal" but not yet signed into law. It was interesting that some agents were sounding the alarm even at that early date. They began to focus on other insurance disciplines long ago, it seems.
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- #19
Hitting the doctors now.
Wish I only got a 5% haircut.
Shows agents are on the bottom, and not required to make the system work.
Highmark to cut doctors' payments for Obamacare plans | TribLIVE
Citing an estimated $500 million loss last year on health insurance plans sold on the Affordable Care Act marketplace, Highmark Inc. said Friday it plans to reduce what it pays doctors who treat patients with the plans.
Highmark plans to reduce payments to the physicians by 4.5 percent starting April 1 as part of a broad effort to stem losses related to the federal marketplace, said Alexis Miller, Highmark's special vice president of individual and small group markets.
Wish I only got a 5% haircut.
Shows agents are on the bottom, and not required to make the system work.
Highmark to cut doctors' payments for Obamacare plans | TribLIVE
Citing an estimated $500 million loss last year on health insurance plans sold on the Affordable Care Act marketplace, Highmark Inc. said Friday it plans to reduce what it pays doctors who treat patients with the plans.
Highmark plans to reduce payments to the physicians by 4.5 percent starting April 1 as part of a broad effort to stem losses related to the federal marketplace, said Alexis Miller, Highmark's special vice president of individual and small group markets.
- 8,448
I read somewhere that if the few carriers going on-exchange for 2017, factor agent commissions into the rates, then they must pay agent commissions for 2017.
Of course, they filed 2016 rates with agent commissions factored in, but we know how that turned out.
From a practical and logical standpoint, I don't know why any company would pay agents to bring them business that they don't want.. 2016..2017, or whenever. In that vein, I don't think companies who are losing money on Obamacare IFP business, will be paying 2017 commissions at all.. Assuming they're fool enough to participate in the Exchange(s).
When the 2016 plans "renew" for 2017, they will be sans commissions, IMO.
Of course, they filed 2016 rates with agent commissions factored in, but we know how that turned out.
From a practical and logical standpoint, I don't know why any company would pay agents to bring them business that they don't want.. 2016..2017, or whenever. In that vein, I don't think companies who are losing money on Obamacare IFP business, will be paying 2017 commissions at all.. Assuming they're fool enough to participate in the Exchange(s).
When the 2016 plans "renew" for 2017, they will be sans commissions, IMO.
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