Need Answers on How Health Reform May Affect Carriers and Agencie

[jdawg]

Need answers to a few questions to better understand how Health Reform may affect the insurance market.

I listed a few questions below, if you would not mind going through them adding your thoughts it would be very much appreciated!

How do you feel Health Reform may positively or negatively affect how you currently do business?

How do you feel Health Reform may affect how carriers and agents sell their products?

Do carriers/agencies have plans to increase or decrease recruiting new agents to sell products?

Do you see a shift from independent to captive? Field agents to more of a call center approach?

Do they have plans to add products?

Do they intend on spending more on marketing or less in 2010 or do you find they are holding off on planning pending Health Reform bill?

I appreciate your help

 

[YouGotMyMoney]

Re: Need Answers on How Health Reform May Affect Carriers and Age

How do you feel Health Reform may positively or negatively affect how you currently do business?

Well, for myself I'm learning more about the Life and Medicare side of the insurance business.


You'll hear from a few members of this board touting 7% GI commissions. That's a pipe dream if I ever heard one before.

Just because you can get 5-7% in GI states right now, does not mean that's what it will be if Health Insurance Reform passes.

1. GI states get very little Indy health business compared to underwritten states, so they can offer that level as an incentive to agents to produce business.

2. When everyone has to get a plan and every plan is GI, I don't see anyone getting 5-7%.

 

[Crabcake Johnny]

Re: Need Answers on How Health Reform May Affect Carriers and Age

Everyone doesn't have to get a plan - by far. Under the Senate bill the initial penalty not having coverage is $90 and goes up to eventually hit $750.

Also under the current bill if the bronze plan is more than 8% of your income you can sit out without a penalty.

The only people who will sign up under the new legislation are the sick and people who simply won't go without coverage. Everyone else will just wait until they get sick.

Carriers can also sell plans outside of the exchange, called "excepted" coverage - which you won't hear anything about since that's the "fix" the carriers put in to "buy" this bill.

 

[ins.dave]

Re: Need Answers on How Health Reform May Affect Carriers and Age

Well, for myself I'm learning more about the Life and Medicare side of the insurance business.


You'll hear from a few members of this board touting 7% GI commissions. That's a pipe dream if I ever heard one before.

Just because you can get 5-7% in GI states right now, does not mean that's what it will be if Health Insurance Reform passes.

1. GI states get very little Indy health business compared to underwritten states, so they can offer that level as an incentive to agents to produce business.

2. When everyone has to get a plan and every plan is GI, I don't see anyone getting 5-7%.

I'm sorry I can't quite read your avatar?

 

[djs]

Re: Need Answers on How Health Reform May Affect Carriers and Age

Truth is, nobody can answer these questions with any degree of accuracy. It's not even worth spending time thinking about it right now.

The only 2 things that make sense right now are:
1. Don't make a 3 year commitment on a marketing plan.
2. Make sure whatever you do has a pretty immediate return. This is pretty normal in life and health anyway, except in group, where it can take a while to get a client, hoping for a long relationship.

My guess is there will be fewer agencies, but those who stay around will run much higher volume, more similar to how most P&C agencies work. Anything beyond that, and even this part, is pure speculation.

Dan

 

[Crabcake Johnny]

Re: Need Answers on How Health Reform May Affect Carriers and Age

I see the GA getting cut out. Just my opinion. It'll go from MGA right to the agent. It'll also be a volume better - better believe that'll be true so as you stated, only the larger agencies will make it.