MGA for Healthcare?

[scagnt83]

Two words. Dental Insurance.

Keep it to yourself. Don't want the competition.

Rick

What about Critical Illness? I hear that heart attacks are on the rise because of people finding out that a deductible is something you have to pay out of pocket.

And once the agents are gone and all you have are the Navigators, everyone will be enrolled in the cheapest Bronze Plan there is because it "saves them money".

 

[somarco]

And once the agents are gone and all you have are the Navigators, everyone will be enrolled in the cheapest Bronze Plan there is because it "saves them money".

That sounds a lot like a $0 premium Medicare Advantage pitch.

 

[bluediamond]

BD, it's all speculation tempered with some common sense and observing what has happened in other states with GI and/or community rating.

Whether comp goes to or near 0% in 2017, 2018 or the year following doesn't matter. It will happen and if it doesn't go to near 0% many agents won't participate if it goes much lower.

Then there is the issue of earned but unpaid commissions that many of us have had where our NPN mysteriously disappears and our clients become house accounts.

Add in chasing deadbeats that don't pay their $15/mo premium and you have a business model that is virtually unworkable.

Medicare should be good for at least another 5 years, probably longer.

And there is always life insurance.

S, it's just not yours or my speculation, I have spoke with a couple MGA's and the writing is and has been on the wall for about a year. But yet they still recruit for oep. The recruitment of older agent's piddling around really doing nothing if fine with me, they can make a few extra bucks, but the recruiting of young agent's and helping them obtaining their licenses and making big promise's is just not right in today's health insurance environment.

I have felt and it looks pretty apparent that the carrier's will phase out agent's for under 65 individual. With the phase out the renewal's will also go. I believe they still need us around a few years for Medicare and group.

Health insurance agent's in the under 65 business should be transitioning as we speak to another line.

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What about Critical Illness? I hear that heart attacks are on the rise because of people finding out that a deductible is something you have to pay out of pocket.

And once the agents are gone and all you have are the Navigators, everyone will be enrolled in the cheapest Bronze Plan there is because it "saves them money".

You make a very good point.

 

[healther]

I have a good size personal lines P&C book and got a lot of interest from my BOB. I don't have the time or desire to get appointed directly w/ different health carriers and was just wondering if there was a MGA that might be a good option.

IMO, as complex as the industry is right now, if you don't have the time to appoint directly it might not be a good fit.

 

[Brian F 11]

S, it's just not yours or my speculation, I have spoke with a couple MGA's and the writing is and has been on the wall for about a year. But yet they still recruit for oep. The recruitment of older agent's piddling around really doing nothing if fine with me, they can make a few extra bucks, but the recruiting of young agent's and helping them obtaining their licenses and making big promise's is just not right in today's health insurance environment. I have felt and it looks pretty apparent that the carrier's will phase out agent's for under 65 individual. With the phase out the renewal's will also go. I believe they still need us around a few years for Medicare and group. Health insurance agent's in the under 65 business should be transitioning as we speak to another line. ---------- You make a very good point.

As long as it's called insurance, there will be a need for agents. A single payer system will not be put in place as long as politicians need campaign contributions and insurance companies have fat wallets with slick lobbyists to empty them on. What will happen to these multi-billion dollar insurance companies and all their share holders? They would make profits processing claims for uncle sam?? I just don't see that happening, not in any near future.

Reducing commissions next to nothing is still a concern for another reason. Insurance carriers can accomplish that on their own, with or without compression. That's what really worries me.

You are 100% on the money about new agents. The last carrier I worked for directly was already in the process of paying new agents next to nothing. Last year, the carrier brought in hundreds of new agents for OEP/AEP. Only they were not agents at all. They were paid a very, very low hourly wage, helped them study for the state ins exam, held their hands through AHIP and FFM Certs. For those who made it through (about a third or less), didn't receive any benefits, started receiving a tiny commission.

These new agents were making 1/3 of what I was, with no 401k, no benefits, same company, same job really. Writing was on the wall for sure. I couldn't believe they could find agents that would sell themselves that short, until I talked to some of them. Some were hired through temp agencies, some from anywhere else they could find. Seemed like they took a chance on anyone who could pass a background check. One guy said he was a flight attendant, one worked at BK, another night crew at Walmart, clerk at a gas station, on and on and on. The company hired them, paid them a little more than what they were getting before, pushed them through licensing and certification, put a script in front of them, no experience necessary, had them processing enrollment after enrollment.

I am all for upward mobility but that in no way is a replacement for what a licensed agent should be. I know most carriers don't have this practice, but if one Major carrier takes this mainstream then they all will have to if they want to remain competitive, no? If they have the guy who threw your whopper together as you went through BK drive through a month ago is now tackling your Med Supp Plan or processing your ACA App, we're done here.

 

[somarco]

What will happen to these multi-billion dollar insurance companies and all their share holders? They would make profits processing claims for uncle sam??

IFP and small group is a very small piece of the pie for the remaining carriers. They can jettison that line and never blink.

Several carriers have a huge market operating as a TPA and yes, it is profitable.