That is a great testiment to you and the way you conduct yourself with your clients. But as for voting, it does not matter. The forces are all aligned against this, sorry.
Mandated ACA Commissions for 2017 ?
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That is a great testiment to you and the way you conduct yourself with your clients. But as for voting, it does not matter. The forces are all aligned against this, sorry.
- Thread starter
- #42
Insurers slashing commissions on PPACA plan sales | BenefitsPro
Bob/Lee,
I'm not arguing your points, but if people are willing to pay me for my knowledge and advice, it's a shame that I can't take advantage of it. In the end, the client loses. I'll be fine and move on to something else.
Bob/Lee,
I'm not arguing your points, but if people are willing to pay me for my knowledge and advice, it's a shame that I can't take advantage of it. In the end, the client loses. I'll be fine and move on to something else.
I know most people on here are suuuuper negative about this whole commission cut situation, probably because ya'll have been selling health many years longer than I have. But if commissions really do drop down to ZERO, nationwide, I would hope that lead costs go down significantly too. I would jump all over 50-75% cheaper leads and sell 0 commission health plans with ancillary like crazy.
I came into this industry 4 years ago right before the switch, and even back then my prior place of work (small brokerage) only paid me $10 a member ONE TIME. I had no idea how bad I was getting raped. The only way we made money was selling critical illness/life insurance/accident insurance policies. I'm pretty sure I could make a very easy six figure income off critical illness alone, now that I sell on my own and have much better contracts. Nothing will be worse than the realization I had 8 months ago when I finally called the carriers and asked what the actual pay is. I was the top health producer and during each open enrollment I averaged 200-250 members a month, cold calling a dialer and taking referrals. It's truly depressing looking back that I didn't get a single residual dollar from those policies. So honestly, I'm excited right now regardless. I feel I can make a shitload of money next open enrollment with or without health commissions. Just thought I'd share my perspective in here.
I came into this industry 4 years ago right before the switch, and even back then my prior place of work (small brokerage) only paid me $10 a member ONE TIME. I had no idea how bad I was getting raped. The only way we made money was selling critical illness/life insurance/accident insurance policies. I'm pretty sure I could make a very easy six figure income off critical illness alone, now that I sell on my own and have much better contracts. Nothing will be worse than the realization I had 8 months ago when I finally called the carriers and asked what the actual pay is. I was the top health producer and during each open enrollment I averaged 200-250 members a month, cold calling a dialer and taking referrals. It's truly depressing looking back that I didn't get a single residual dollar from those policies. So honestly, I'm excited right now regardless. I feel I can make a shitload of money next open enrollment with or without health commissions. Just thought I'd share my perspective in here.
- 8,448
You tell em Chris! After their health premium, some people are indeed able to squeeze out an additional $12 for the dental discount plan. But with premiums increasing an additional 20% for 2017...we might have to switch from being agents, to conservation thugs.
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Is there a problem if you give advice, and accept a gratuity as a concerned friend, instead of as an agent? A turning-65 client wants to pay me next week to help her decide if she should take this AARP-UHC Medicare Advantage plan, or a MedSup. If she takes MedAdv, I'm accepting the gratuity, cause I'm not certified on those. I'm licensed for MedSup, so the gratuity will be graciously declined if she goes that route. Sunday night, I'll be boning up on the disadvantages of Medicare Advantage..
AC this seems to be a state by state thing with regards to licensed agents charging a consulting fee. Check with the IL DOI for clarification.
I agree with your assessment on ancillary coverage for people with Obamacare. It is possible the highly subsidized people paying minimum premiums for health insurance will have disposable income to purchase supplemental coverage. The question is, how many will actually do so?
Humana is hosting a dental & vision webinar next week to drum up business. I am pretty sure they dropped their cancer plans from the product portfolio and don't recall them ever having an accident plan. Haven't seen much push from traditional health insurance carriers to push supplemental coverage. I have to believe they aren't generating enough volume off these products to really make it worthwhile.
If I were going to push supplemental coverage I would go for volume in the payroll deduction market. At one time there were a fair number of agents with $100k+ incomes that focused on the PRD market. I have no idea how viable that market is any more.
I agree with your assessment on ancillary coverage for people with Obamacare. It is possible the highly subsidized people paying minimum premiums for health insurance will have disposable income to purchase supplemental coverage. The question is, how many will actually do so?
Humana is hosting a dental & vision webinar next week to drum up business. I am pretty sure they dropped their cancer plans from the product portfolio and don't recall them ever having an accident plan. Haven't seen much push from traditional health insurance carriers to push supplemental coverage. I have to believe they aren't generating enough volume off these products to really make it worthwhile.
If I were going to push supplemental coverage I would go for volume in the payroll deduction market. At one time there were a fair number of agents with $100k+ incomes that focused on the PRD market. I have no idea how viable that market is any more.
How could costs drop significantly with the elimination of commissions? Commissions represent a very small amount of the cost.
- 1,007
Carriers don't value us? Don't kid yourself... they currently don't value us
for IFP but will again someday. Of course carriers only want us to sell their most profitable products (MAPD & Large Group) but its the entire package that we bring as a whole that ultimately decides our worth. I think the Govt will be taking a hard look at agent assisted enrollment figures and will eventually address compensation. Pretty sure the link Bill posted yesterday stated agents are responsible for 50% of .Gov enrollments? That's a staggering number.
- Thread starter
- #49
Some like to say super negative, I prefer super realistic pragmatism.
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1. After spending an hour selling the ACA portion, nobody has the patience to talk about other products.
2. After spending $600-1500/mo on a health premium for those above 400% - 600% FPL, their budget is maxed out.
3. For those that get 87-94% CSR plans, ancillaries are a waste of money in most minds.
4. ACA plans are budget crusher for even those that get heavily subsidized. When you're living on $1000-1500/mo, a $20 ancillary policy is a stretch and a charge back waiting to happen.
At what point in the conversation will you ascertain ancillary interest and affordability? Seems to be a broken model to spend a few bucks on the lead, provide an hour's worth of free advice, to then be shunned at the end on the ancillary. I doubt you can make it a condition that you will only help them if they buy a ancillary product.
As someone who has sold supplemental products to every health insurance client pre ACA I can tell you it is a different ball game. First of all someone who isn't getting a subsidy their budget is maxed on Health insurance. Even if they are receiving a subsidy it's either very little and their budget is maxed out to but if they are receiving a huge subsidy their deductible is so low it doesn't make sense.
Out of the 163 apps I wrote last year I only sold 32 supplemental products last enrollment. I use to be around 90% pre ACA.
Out of the 163 apps I wrote last year I only sold 32 supplemental products last enrollment. I use to be around 90% pre ACA.
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