Obama vs. Insurance
- Thread starter Winter_123
- Start date
- Thread starter
- #42
- 2,908
Don't know. There aren't any agents in the individual/family health insurance business here to speak of other than Anthem and Mega.
I really dont think 30% commission would make any difference over 5% here. The problem is that the entire field is owned by Anthem and they only sell through their captive sales force. And, to reinforce some other things folks have said here, when you have guaranteed issue there is not that much for the agent to do. (yes, I know the pushbacks to this comment, I am just saying how the public perceives it). Just go to Anthem's website and the plans are there and just pick the one you want or more likely, conclude that you cant afford any. If there is a health exchange in the future, then go to the health exchange website and there will be Anthem's and some others. No big change.
The group health market here is a little different with a couple more carriers than the individual market. United Health and Aetna are involved. And carriers like Harvard Pilgrim come and go. I just dont have much knowledge there because you can talk to dozens of independent agents and none of them are involved. It's a pretty busted down environment.
I do think though that it is not enough to just speculate about commissions. You also have to think about volume. With GI, the number of clients who feel they need to go through you or to have you quote or point out various costs and benefits will be greatly reduced. If the government approves plans for subsidy or tax credit the volume will be even less because they will certify or standardize plans.
I suppose there could be some kind of mini-gold rush for a brief period if there is a mandate or quasi-mandate and people are running around helter-skelter trying to figure things out. And maybe the commissions are small but the volume would be up. That will soon pass though. After a while folks will just look at the plans approved by the government for tax credit or subsidy and ask their friends down at the Elks Club which ones they have and then the next day they go online and sign up. Could be a little better than that for agents but considerably less than what some are used to now.
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- 868
I am gonna make this simple. Based on the Hatch amendment accepted by the HELP committee specifically identifying brokers as eligible to sell the products in the exchange; we will still be needed.
Carriers esp second and third tier carriers need us to direct clients to them. BCBS is the only one in the country with the universal name recognition to do without a broker. Aetna, Humana, UHC, Assurant etc arent just gonna go out of business and let everyone choose BCBS by default. They will keep brokers and pay commissions to make sure that doesnt happen. As always the less well known the carrier is the higher the commission or finders fee will be.
Carriers esp second and third tier carriers need us to direct clients to them. BCBS is the only one in the country with the universal name recognition to do without a broker. Aetna, Humana, UHC, Assurant etc arent just gonna go out of business and let everyone choose BCBS by default. They will keep brokers and pay commissions to make sure that doesnt happen. As always the less well known the carrier is the higher the commission or finders fee will be.
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- 14,808
I posted about this a few weeks ago. Especially 2nd tier carriers will find any loophole in the law (which is a Mega Life specialty) or simply offer uncompetitive plans and keep the comp high.
Easy con; say the average rate for a plan is $400 with a 3 mill lifetime max. ABC carrier will come out with a 20 mill lifetime max, price it at $550 and pay decent commissions.
Easy con; say the average rate for a plan is $400 with a 3 mill lifetime max. ABC carrier will come out with a 20 mill lifetime max, price it at $550 and pay decent commissions.
- 9,744
Alan Katz makes some interesting points...that are all theory. Is he a college professor?
Think for a minute...how hard it is right now to sell shared health leads - which costs the proposed insured an additional zero dollars.
These people are going to pay you a fee?
Forget about what product it is, the future belongs to those who have invested in client relationships...and will help them buy whatever product it is that they WANT to buy.
It won't be about fitting the product to the client, it'll be about fitting the client to the product.
- - - - - - - - - - - - - - - - - -
I've got news for you...
In the new world of "health insurance exchanges"...second and third tier carriers won't exist.
Take it to the bank.
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- 10,275
"Forget about what product it is, the future belongs to those who have invested in client relationships...and will help them buy whatever product it is that they WANT to buy."
I agree. I'm still not sure (nobody is) if any insurance company will be willing to pay us for our expertise.
I agree. I'm still not sure (nobody is) if any insurance company will be willing to pay us for our expertise.
- 9,744
You know what Ed, I agree totally.
Maybe it'll be necessary to start some alternative thinking. What IS your expertise? Insurance contracts, or how they work for people?
About a month or so ago, I was ruminating one warm Florida evening over a glass of wine with Sueann on the lanai. One of the benefits of talking with "non-insurance" people is that they give you a "real world" perspective.
Anyway, she's a very bright woman, graduate level, working towards a PhD. Something she said, "well if I trust you with some of my insurance..." struck a chord in me.
It's not about the product - it's about trust.
PS-Rarest occurence in baseball today (only 18 ever) Rays got a Perfect Game thrown at them at Sox Park. Did you hear?
- 10,275
Yea...I saw the boxscore. That's his second no-hitter!
OneStopTexan
New Member
- 12
I have been in insurance over 7 years and a broker 6 years now and part of NAHU National Association of Health Underwriters for 3 years. Thought some of you may be interested in the following...
On July 15, approximately 1,200 health insurance agents and brokers, including about 500 NAHU members, joined forces to spread our "Keep It Private" message on Capitol Hill. Members of the Health Insurance Agent & Broker Alliance, which includes NAHU, CIAB, AHIA/NAIFA and IIABA, dropped everything to come to Washington, DC, to ensure that Congress understands the value of agents and brokers, our united opposition to a government-run health plan, and the need for bipartisan and deliberative efforts to reform health care correctly.
Our unified efforts certainly made an impact. During the July 15 Fly-in, the Senate HELP Committee unanimously approved a amendment to the "navigator" provisions in the bill, making it much more workable from the agent/broker industry perspective. The amendment specifies that navigators have to be licensed and trained and that agents and brokers can serve as navigators to sell products through the proposed "gateway."
I had to take out somethings being my first post it would not let me post URLS or sites. I will be happy to forward anyone more on this if requested. I have a copy of the amendment as well, although we will see if it sticks in the end.
On July 15, approximately 1,200 health insurance agents and brokers, including about 500 NAHU members, joined forces to spread our "Keep It Private" message on Capitol Hill. Members of the Health Insurance Agent & Broker Alliance, which includes NAHU, CIAB, AHIA/NAIFA and IIABA, dropped everything to come to Washington, DC, to ensure that Congress understands the value of agents and brokers, our united opposition to a government-run health plan, and the need for bipartisan and deliberative efforts to reform health care correctly.
Our unified efforts certainly made an impact. During the July 15 Fly-in, the Senate HELP Committee unanimously approved a amendment to the "navigator" provisions in the bill, making it much more workable from the agent/broker industry perspective. The amendment specifies that navigators have to be licensed and trained and that agents and brokers can serve as navigators to sell products through the proposed "gateway."
I had to take out somethings being my first post it would not let me post URLS or sites. I will be happy to forward anyone more on this if requested. I have a copy of the amendment as well, although we will see if it sticks in the end.
- 10,275
Well...that was one of the more pleasant first posts I have seen.
Of course...knowing Washington bureaucracy, that "training" could take 6-9 months. Imagine being the first in your state to be a "trainer."
Of course...knowing Washington bureaucracy, that "training" could take 6-9 months. Imagine being the first in your state to be a "trainer."
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