Obamacare & Selling Individual Health Insurance in 2013 & 2014

[AIBINS]

Just like CHUMPS and I were discussing on the phone yesterday, the answer is both "it's a great time to get in the business" and "run as fast as you can". It depends on your situation. There will be leads raining down on our heads like confetti in a New York parade. However, to convert that to cash you need several things:

1. Strong experience in the health insurance market, preferably 15 years or more
2. Solid financial base to make it through the transition (either a solid book of business, or assets, or cash)
3. Large base of prospects (from a website that generates leads, or a database of your most recent clients/prospects, or another marketing program)
4. Willingness to take a risk
5. Adaptability and the agility to turn on a dime when things change
6. Program in place to process business as a volume-business rather than an underwritten business
7. As a bonus, the ability to cross-sell

If you have those strengths, then this could be a major windfall for you. Of course, we are still dependent on carriers' decisions, such as how many participate in our state, the benefit plans, premiums and commissions that they set. And, we are subject to the whims of government decisions. But as it sits right now, this is the opportunity of a lifetime for those who have the strength set mentioned above to thrive through it.

If you have the following situations, I would run from this market:

1. Newbie in the industry, and possibly even those with 7 years or less experience.
2. A young family to feed and no solid income or assets to turn to when your current commissions disappear and you are waiting for the new commissions to start hitting your bank account.
3. Dependency on buying leads for your prospects.
4. Dependency on taking advances for cash flow, or a debit balance with carriers.
5. A solid alternative for income that is a better choice at this time (such as Med Supp sales, P&C, Web development, or another industry).
6. The need to have a solid route mapped out before you feel you can continue. Fear and frustration with ever-changing govt rules and ever-changing products and markets.

Like I've said before there's absolutely nothing wrong with choosing to leave this market. It's a great decision for those with particular situations. Item #5 above is one of the best reasons to do so (a solid alternative for income that is a better choice at this time). This isn't for everyone. But it's perfect for some (me included).

Ann excellent response! I didn't make a dime since AEP closed and just got my first ACA checks from Anthem for a whopping $200!! Thank God for my renewals and large book of existing business with Seniors aging in! However, I have been working with a lot of small business converting their employees over to ACA and implementing defined benefit plans selling lots of additional ancillary products so by April of this year I should have a nice stream of income of around $6,000 - $7,000 of NEW monthly income coming in just from ACA plans. It is a Gold mine right now for agents who can weather the storm financially.

 

[Yagents]

Amazing how spot on you were Ann, and back in April. Wow wow wow. Care to give us your crystal ball for remainder of year with SEP and next OEP ?

 

[Jofainc]

Just like CHUMPS and I were discussing on the phone yesterday, the answer is both "it's a great time to get in the business" and "run as fast as you can". It depends on your situation. There will be leads raining down on our heads like confetti in a New York parade. However, to convert that to cash you need several things:

1. Strong experience in the health insurance market, preferably 15 years or more
2. Solid financial base to make it through the transition (either a solid book of business, or assets, or cash)
3. Large base of prospects (from a website that generates leads, or a database of your most recent clients/prospects, or another marketing program)
4. Willingness to take a risk
5. Adaptability and the agility to turn on a dime when things change
6. Program in place to process business as a volume-business rather than an underwritten business
7. As a bonus, the ability to cross-sell

If you have those strengths, then this could be a major windfall for you. Of course, we are still dependent on carriers' decisions, such as how many participate in our state, the benefit plans, premiums and commissions that they set. And, we are subject to the whims of government decisions. But as it sits right now, this is the opportunity of a lifetime for those who have the strength set mentioned above to thrive through it.

If you have the following situations, I would run from this market:

1. Newbie in the industry, and possibly even those with 7 years or less experience.
2. A young family to feed and no solid income or assets to turn to when your current commissions disappear and you are waiting for the new commissions to start hitting your bank account.
3. Dependency on buying leads for your prospects.
4. Dependency on taking advances for cash flow, or a debit balance with carriers.
5. A solid alternative for income that is a better choice at this time (such as Med Supp sales, P&C, Web development, or another industry).
6. The need to have a solid route mapped out before you feel you can continue. Fear and frustration with ever-changing govt rules and ever-changing products and markets.

Like I've said before there's absolutely nothing wrong with choosing to leave this market. It's a great decision for those with particular situations. Item #5 above is one of the best reasons to do so (a solid alternative for income that is a better choice at this time). This isn't for everyone. But it's perfect for some (me included).

Ann, your answer was absolutely on the money. 37 years in the business, good existing book (for now until the Obamacare renewals begin) and Web presence up to par.
However, including continuing efforts in the health insurance market, I am contracted with the leading carrier for Voluntary Benefits and refocusing my prospecting efforts toward that market. Still quiet as it appears business owners are still concerned with the future and afraid to make any changes. Especially facing making a change to a "Metal Plan".
Newbies - find the "new" market whether supplemental products, life/DI or P&C and get prepared for the annual "rush" starting in November this year (can anyone make sense of this delay??).
Established agents, continuing building your presence, take exceptional care of your existing clients and find "Cross Sell" opportunities to keep the growth happening.
A very tough time to be in the health insurance field. I've seen shifts in our market several times over the years, this is by far the most destructive.
Good luck to us all.

 

[Ann H]

Well, thank-you guys for the compliments. Whew! I'm glad some of my predictions came out on target. LOL. You never know with an industry-twisting program like this one! Continuing in this industry is still a risk, and getting out is still a sound decision, especially if you have another stream of income that is promising. But what do I now predict that an agent needs to succeed in the rest of OEP, SEP season, and then the upcoming OEP Nov 15 2014 to Jan 15 2015? Uhmmmmm, here goes with the predictions, for whatever that might be worth LOL.

1. Being able to pivot on a dime and redesign yourself when needed. We might see more changes this year than we did last year, especially because it is an election year, and because the product and carrier mix in the market today will probably be very different next year.
2. Preparing early so that months ahead of time you have every client prepared - you know their needs, their income level, their desires, and are ready for the products to be announced.
3. Products to sell between Open Enrollments, and/or a marketing plan for SEP leads.
4. Efficiency to process a volume of business in next year's short OE.
5. The keen sense of when to sell your block of business and get out (if that is your decision), or to cross sell other products to your block.

I'm proud of everyone who stuck it out and made money on it. I'm also proud of those who saw another stream of income that was more promising.

 

[bluemarlin08]

When I get confused and frustrated I call Ann. Thanks friend for all you do.

 

[hamben]

Has anyone gotten any kids issued when the kids were forced to chips ? Just ran into another problem today with a divorced father. Father takes kids on his tax return and is required by the court to keep health insurance on the kids. Father makes $34,000 a year so kids get shipped to medicaid..father gets a ACA subsidies plan. 2 months later medicaid informs him because he doesn't have custody of the kids they are not eligible for chips. So now dad must buy children only health plan outside of the exchange which causes his health insurance cost to be more than the law allows. God this is a mess!!!!!!

 

[taterpeeler]

Has anyone gotten any kids issued when the kids were forced to chips ? Just ran into another problem today with a divorced father. Father takes kids on his tax return and is required by the court to keep health insurance on the kids. Father makes $34,000 a year so kids get shipped to medicaid..father gets a ACA subsidies plan. 2 months later medicaid informs him because he doesn't have custody of the kids they are not eligible for chips. So now dad must buy children only health plan outside of the exchange which causes his health insurance cost to be more than the law allows. God this is a mess!!!!!!

based on your comments since dad has cusody and now a deniel letter he can click the green life change button and add them to his plan... subsidy giver, problem solved

 

[CHUMPS FROM OXFORD]

I have talked to Ann and Bill numerous times. Mostly business but we mix in some silly stuff too. They are both the premier resources for information about writing Health Insurance business in 2014 and beyond.

WebNannny was not used in this post
WebRespect was used in this post.

 

[taterpeeler]

guess im freeking chopped liver....... that's ok, I suck and still don't understand the law....

 

[kgmom219]

guess im freeking chopped liver....... that's ok, I suck and still don't understand the law....

Me either. And don't want to. I'm done. For the first time yesterday, I said "I don't write business on the exchange. If its one of my financial planner referrals that are on disability and qualify, I will help them. And that's it." I AM helping my lawn guy, though

Chopped Liver for 2!