Obamacare & Selling Individual Health Insurance in 2013 & 2014

[FLM2]

So for the million dollar question. How do you juggle both medicare aep and Aca aep.

Specifically what steps are you doing now in anticipation of that?

I was able to do it this year without much of a problem and retained virtually all of my Medicare business. Next year will be much easier and since my book of business is virtually all Off Exchange there is little time needed to do a review with each client.

Why would I be doing anything now for an event that starts in October? I'll start preparing in August with certifications, until then I've more than earned extended time off.

 

[kgmom219]

Relative to renewals, I have a very simple model I've adapted for my book of business that will most likely closely approximate reality:

Assumptions:
1st Year Commission- 8%
Renewal Commission- 2-3%

Assume 50% of your book moves each year to a different carrier and the rest renews with about 90% retention. Less than 2% of my book is subsidy based and since I haven't been paid on any of it yet I'm not even thinking about that going forward.

So, for a $1M book of business, that's about $45K in income per year going forward.

For me, that's fine because I also have a Medicare book (about 100) and other income.

$45K annually for working about 3 months a year is a pretty good return, if I wanted to double or triple that it would be easy enough by cross selling to my book of business, something that I am not going to actively pursue.

The renewal income is very state specific. The current BCBSTX indy contract is 6.5% for years 1-3.

Plus, I don't think you are going to see 50% movement next year. Most of them are going to remember this year's pain and unless there a significant premium change by moving, clients are not going to move.

 

[HealthGuy]

KG Im not so sure...the subsidy crowd will change if their rates jump 25 bucks. Thats my 2 cents.

 

[kgmom219]

KG Im not so sure...the subsidy crowd will change if their rates jump 25 bucks. Thats my 2 cents.

Well...I voted that OEP would extend. What do I know?

And as a woman, its important that I point out I WAS WRONG.

I'm so happy I was wrong and it ends tomorrow.

 

[somarco]

getting a subsidy and their income stayed the same their premium will remain constant

Speculation or a given? What's to say there won't be "bracket creep" based on FPL?

I don't see this gravy train lasting forever, especially if the 2014 elections put Rep's in charge of House and Senate.

I'm so happy I was wrong and it ends tomorrow.

Tomorrow isn't over yet.

 

[kgmom219]

Speculation or a given? What's to say there won't be "bracket creep" based on FPL?

I don't see this gravy train lasting forever, especially if the 2014 elections put Rep's in charge of House and Senate.



Tomorrow isn't over yet.

You are SO positive, I don't know how to contain your enthusiasm.

There might be a bracket creep in 2016, but the new House and Senate won't be in office until OEP 2015 is almost over. The earliest we are going to see changes is 2016. Unless the president decides to issue some more orders....

 

[GreenSky]

I think it's better than even money that Obozo extends this another month. Then he'll go on vacation.

Rick

 

[kgmom219]

I think it's better than even money that Obozo extends this another month. Then he'll go on vacation.

Rick

BITE YOUR TONGUE!!!

(And I really don't think so. The carriers don't want it and he hit the 6 million)

 

[GreenSky]

BITE YOUR TONGUE!!!

(And I really don't think so. The carriers don't want it and he hit the 6 million)

6 million what? Certainly not enrollments.

Rick

 

[somarco]

Mom, I am realistic. You can call it enthusiasm if you wish, but Ocare will blow up. The only question is when and how much of it will take a dirt nap and how much will survive in a watered down state.