joshpeck247
Expert
- 64
I have waited to post this because I wanted to gather more information so if you sell individual policies or are getting ready to here is the information that you will need.
1. Come Obamacare the companies are looking to consolidate their business. What I mean by that is they don't want the admin work. They want agents to be underneath organizations that do all of that for them. If you choose to be all by yourself then you will probably see a cut in commissions. They have already been trying to do this model with the big boys basically getting paid more money in commissions to take care of the small things so if you are an individual producer and you don't have an upline besides the company then find a good one. You will make more money by doing this.
2. Commissions will be fine. In fact they will be more than fine. Some companies will do a percentage and some will do per app or per client type of situation kind of like Medicare Advantage. There will be renewals. Some of the companies have already stated that the commissions will be about the same as they are now and they will be off of the unsubsidized amount. Also keep in mind that most companies are setting their renewal date for 12/1/2013 so in actually your client can keep what they have for one more year. The only issue is you get a crappy 2nd year or 3rd year comp on that.
3. The exchanges will be relevant-There will be a lot of people and I mean a lot that will get subsidies, but still a lot of people won't be able to afford that and the ones that do then you will get paid. If they don't want the exchange or an exchange type product then they can't get a Major Medical policy. You heard me right. If they don't take the exchange or an exchange type product they can only get an indemnity type product. Now keep in mind these products will be beefed up to look and feel like a Major Medical, but they won't be one. You will get paid about double what current commissions are today on those type of products. There will be a market for them, but be careful because they aren't major medical and they will still have to pay the penalty with these products.
4. More and more doctor's will start turning away people who don't have insurance. If you can get into a medical facility now then do it. You will get calls because since it's required to have insurance then if you go to the doctor without insurance they will expect cash on the spot or they will ask you to go get insurance and come back. It would be handy for them to refer them to you. It's in the doctor's best interest for you to get insurance so they can get paid and since it's the law there's no excuse now.
5. Rates will be higher in 2014 and then trickle down for a few years. The insurance companies are building into their rates a few factors. One of them is they know that people are waiting to get Obamacare to get a major surgery or to get treatment. They are literally in pain or possibly dying and they are waiting for insurance and the companies know this. You will see in 2015 the rates go down a little. Also you will be flipping your people every year to a new product. You should be doing this anyway, but especially in 2015 it will be a must.
6. You will see many companies make grave mistakes this first year and many smaller companies will either quit operations or merge with a bigger player. It only takes one rate mistake to bankrupt a smaller company. If they were smart they wouldn't be in the exchange the first year and see how it plays out. Individual policies will double over the next few years, but do you want double the people and quadruple the claims? Should be interesting to see the moves the companies make.
7. Companies will get really creative. Right now some companies are sitting back trying to see how little they can give the agents and the agents are letting it happen. Listen everyone there will be companies that pay very well in the exchange. The only issue that you will have is are they the best price? If there is a company that pays good commissions and have good prices then get prepared to rake it in, but there may be a problem if it's the reverse. Agents should expect to get paid and paid well, but all of the forums and the general attitude of the agents is allowing the companies to cut them off at the legs. As soon as you expect more you will get more. Expect less and they will for sure give you less. The bigger agencies will get higher commissions and if you work for the right people you will also get a higher commission. I currently get 16% with Golden Rule. Another company I get 21% and yes it's a major medical. Another I get 13%. Another I get 14%. An agent should expect to get paid. Even if the commissions are cut to 5% your premiums are going to be over doubled and you will sign up twice as many. Commissions cut in half just doubled your income. I don't for see that quite of a cut. Anthem/Blue Cross will probably do that, but they aren't the company I would suggest selling anyway. They aren't a broker friendly company.
8. You will lots of extras in these exchange plans. Companies are trying to set them apart and one way to do that is to add in extra goodies. Deductible credits, free accident insurance, free life insurance etc. If you see 5 plans with pretty much the same coverage, but one has some cool goodies then that's the one agents and clients will go to. You won't believe how creative these plans will be. It's going to be crazy.
9. Have fun. A few years ago when agents were running for the hills my company decided to stay in. We added a P and C department, a medicare department and an Annuity department just for safety sake, but we haven't lost a beat with the health insurance and it's going to get even better. Leads shouldn't be an issue so if you work for a company that doesn't have leads or you can't get them then find someone else. Leads should be easy to attain and they should be cheap. We don't charge our agents any money for leads and they are fresh telemarketed leads. Sure it costs us money to do that, but how are the agents going to sell? I would never want my agents to drive around aimlessly or go walk and talk. Total waste of time when you can have qualified leads ready to talk. I suggest more than anything that agents need to find a good support system as it's not going to be easy doing this yourself, especially with all of the new regulations and tests that the agents will have to go through. It would suck to be a good agent, but get your licensed yanked because you didn't know what to do or how to do it. Everything I say about comp isn't 100% fact, but it is the information that I have squeezed out of some very good sources. I really think that a percentage off of the unsubsidized amount will be the best way for the agents to go.
1. Come Obamacare the companies are looking to consolidate their business. What I mean by that is they don't want the admin work. They want agents to be underneath organizations that do all of that for them. If you choose to be all by yourself then you will probably see a cut in commissions. They have already been trying to do this model with the big boys basically getting paid more money in commissions to take care of the small things so if you are an individual producer and you don't have an upline besides the company then find a good one. You will make more money by doing this.
2. Commissions will be fine. In fact they will be more than fine. Some companies will do a percentage and some will do per app or per client type of situation kind of like Medicare Advantage. There will be renewals. Some of the companies have already stated that the commissions will be about the same as they are now and they will be off of the unsubsidized amount. Also keep in mind that most companies are setting their renewal date for 12/1/2013 so in actually your client can keep what they have for one more year. The only issue is you get a crappy 2nd year or 3rd year comp on that.
3. The exchanges will be relevant-There will be a lot of people and I mean a lot that will get subsidies, but still a lot of people won't be able to afford that and the ones that do then you will get paid. If they don't want the exchange or an exchange type product then they can't get a Major Medical policy. You heard me right. If they don't take the exchange or an exchange type product they can only get an indemnity type product. Now keep in mind these products will be beefed up to look and feel like a Major Medical, but they won't be one. You will get paid about double what current commissions are today on those type of products. There will be a market for them, but be careful because they aren't major medical and they will still have to pay the penalty with these products.
4. More and more doctor's will start turning away people who don't have insurance. If you can get into a medical facility now then do it. You will get calls because since it's required to have insurance then if you go to the doctor without insurance they will expect cash on the spot or they will ask you to go get insurance and come back. It would be handy for them to refer them to you. It's in the doctor's best interest for you to get insurance so they can get paid and since it's the law there's no excuse now.
5. Rates will be higher in 2014 and then trickle down for a few years. The insurance companies are building into their rates a few factors. One of them is they know that people are waiting to get Obamacare to get a major surgery or to get treatment. They are literally in pain or possibly dying and they are waiting for insurance and the companies know this. You will see in 2015 the rates go down a little. Also you will be flipping your people every year to a new product. You should be doing this anyway, but especially in 2015 it will be a must.
6. You will see many companies make grave mistakes this first year and many smaller companies will either quit operations or merge with a bigger player. It only takes one rate mistake to bankrupt a smaller company. If they were smart they wouldn't be in the exchange the first year and see how it plays out. Individual policies will double over the next few years, but do you want double the people and quadruple the claims? Should be interesting to see the moves the companies make.
7. Companies will get really creative. Right now some companies are sitting back trying to see how little they can give the agents and the agents are letting it happen. Listen everyone there will be companies that pay very well in the exchange. The only issue that you will have is are they the best price? If there is a company that pays good commissions and have good prices then get prepared to rake it in, but there may be a problem if it's the reverse. Agents should expect to get paid and paid well, but all of the forums and the general attitude of the agents is allowing the companies to cut them off at the legs. As soon as you expect more you will get more. Expect less and they will for sure give you less. The bigger agencies will get higher commissions and if you work for the right people you will also get a higher commission. I currently get 16% with Golden Rule. Another company I get 21% and yes it's a major medical. Another I get 13%. Another I get 14%. An agent should expect to get paid. Even if the commissions are cut to 5% your premiums are going to be over doubled and you will sign up twice as many. Commissions cut in half just doubled your income. I don't for see that quite of a cut. Anthem/Blue Cross will probably do that, but they aren't the company I would suggest selling anyway. They aren't a broker friendly company.
8. You will lots of extras in these exchange plans. Companies are trying to set them apart and one way to do that is to add in extra goodies. Deductible credits, free accident insurance, free life insurance etc. If you see 5 plans with pretty much the same coverage, but one has some cool goodies then that's the one agents and clients will go to. You won't believe how creative these plans will be. It's going to be crazy.
9. Have fun. A few years ago when agents were running for the hills my company decided to stay in. We added a P and C department, a medicare department and an Annuity department just for safety sake, but we haven't lost a beat with the health insurance and it's going to get even better. Leads shouldn't be an issue so if you work for a company that doesn't have leads or you can't get them then find someone else. Leads should be easy to attain and they should be cheap. We don't charge our agents any money for leads and they are fresh telemarketed leads. Sure it costs us money to do that, but how are the agents going to sell? I would never want my agents to drive around aimlessly or go walk and talk. Total waste of time when you can have qualified leads ready to talk. I suggest more than anything that agents need to find a good support system as it's not going to be easy doing this yourself, especially with all of the new regulations and tests that the agents will have to go through. It would suck to be a good agent, but get your licensed yanked because you didn't know what to do or how to do it. Everything I say about comp isn't 100% fact, but it is the information that I have squeezed out of some very good sources. I really think that a percentage off of the unsubsidized amount will be the best way for the agents to go.
