Obamacare Effecting MAPD AEP for Agents

[timsip]

Currently on a conference call with ICA agent manager who just announced that except for three states, UHC will not be doing any television, radio, print, or direct mail advertising for AEP. Reason? Cost increases due to Obamacare.

So, due to Obamacare, the carrier can't afford to advertise without decreasing benefits too much on beneficiaries or raising costs too much. We as agents can only do direct mail with at best a 2% response. I hope no one has MAPD as a big portion of their income expectations for this year or next. If you were banking on MAPD and IFP enrollment periods for your income streams, you are on shaky ground. Thanks all to Obamacare.

 

[houcoogster]

Well now there is another way to look at this. If they don't advertise then the call-ins/self-enrollments will be a lot less this AEP which would be good for agents. I always thought they wasted too much on ads anyway. But I do see the bigger picture you're talking about.

 

[timsip]

Well now there is another way to look at this. If they don't advertise then the call-ins/self-enrollments will be a lot less this AEP which would be good for agents. I always thought they wasted too much on ads anyway. But I do see the bigger picture you're talking about.

I suppose you have an amazing CMS approved marketing campaign that will capture all of those that used to call the 800 number and will now call you?

Over the years as an ICA, I have received hundreds of warm leads. This year, I will likely receive none. With CMS tying agent's hands, there isn't much you can do that is efficient in generating leads. It's back to informal sales events at grocery stores and the like hoping that saying hello to someone will get them to ask you about MAPD so you can hopefully generate a lead.

 

[JimmyUt]

I am just happy all the leads aren't going to the ICA's. I am sure I will add 50 to 100 new clients this AEP just like the last few without a whole lot of effort. With the carriers spending less, it means less competition in my opinion.

 

[AllenChicago]

this decision by United Healthcare does not bode well for 2014 agent commissions with any of their health products.

 

[timsip]

this decision by United Healthcare does not bode well for 2014 agent commissions with any of their health products.

She said that this was all cost driven due to the funding from CMS. I think it's safe to say that UHC didn't get it's fourth star in Iowa this year.

I have seen the Coventry plans and it appears that depending on their networks, which I doubt changed dramatically, they will be the big winners this year.

 

[anonymous1]

Coventry added total care in area zero pcp copay and prevent dental Excited to get out there this year

 

[Josh]

Looking at the bigger picture here, this is predictable. Well before the bill was past (for decades even) MA programs have been under fire. The products are going to keep having funding cut and healthcare costs will continue to go up. It is set to self-destruct unless something drastic happens like the MMA of 2003, but I don't see that happening.