Okay, but What About Group Agents?

[ApexConsultant]

A lot of the reform threads on this forum are geared towards answering the concerns of the Individual Insurance Agent, but how about Group Insurance Brokers? How will the bill impact group agents?

I speacialize in groups of 5-100 employees and I am very interested in what the impact of this bill will be on agent commissions and the ability to maintain my book of business.

Thanks!

 

[JosephDeacon]

I work in the group market as well as individual, and have been pondering the same question. I can see some groups dropping coverage and having EE's purchase their own individual coverage to free up payroll. Other groups will keep coverage to keep EE's happy and not rock the boat.

I feel like I read that groups would be grandfathered in somehow. There is a lot that is unknown at this point it seems.

Perhaps others will respond with more insight.

 

[TXINSURANCE]

I am assuming once the exchanges roll out, group participation will take a MAJOR hit. People forget the participation rules are there for a reason (adverse selection). In other words when you have a 50 man group and 8 are sick, you can not do a group for the 8 sick employees.

I see this reform merging individual / small group over time to the point were they are one of the same.

 

[somarco]

Depends on the penalty & mandate. For many employers it will be much less expensive to pay the fine vs. providing group insurance. I see more shake up in the under 50 market than in larger groups.

Reform will all but eliminate the individual major med market but will have some impact on small group. Look at how states like NY, ME & VT handle this as a clue to what will happen in the other 54 states . . .

 

[CHUMPS FROM OXFORD]

Joseph...How have you been? Did you get much snow a few weeks ago?

 

[GreenSky]

Here's my confusion. Let's take a 10 person group where 6 people are earning about $40K and paying 50% of the cost of their insurance.

They can get subsidized by going to the exchange and possibly get "better" coverage at a lower price.

They then opt out of the group, leaving 4 people. The insurance carrier non-renews because of low participation. The 4 people now move to the exchange because they are not healthy enough for an IFP.

Explain how the socialists have not taken over the health insurance industry?

Rick

 

[bobson]

Here's my confusion. Let's take a 10 person group where 6 people are earning about $40K and paying 50% of the cost of their insurance.

They can get subsidized by going to the exchange and possibly get "better" coverage at a "lower price".

They then opt out of the group, leaving 4 people. The insurance carrier non-renews because of low participation. The 4 people now move to the exchange because they are not healthy enough for an IFP.

Explain how the socialists have not taken over the health insurance industry?

Rick

You forgot the quotation around lower price as well. Anyone that thinks this will reduce the cost of medical care is a loon or maybe just a drunk on the Senate floor.

 

[GreenSky]

You forgot the quotation around lower price as well. Anyone that thinks this will reduce the cost of medical care is a loon or maybe just a drunk on the Senate floor.

The subsidy will effectively lower the price for those who are under $75K in income.

Rick

 

[somarco]

Seems like Dirigo and the Massachusetts Exchange proved just that point. A significant number of folks seeking coverage were not the uninsured, but rather folks who were paying for insurance and discovered they could get it for free.

 

[Norwayguy]

Seems like Dirigo and the Massachusetts Exchange proved just that point. A significant number of folks seeking coverage were not the uninsured, but rather folks who were paying for insurance and discovered they could get it for free.

In Response to Dirigo Many people had Coverage through Anthem BC at the time they only offered Major Med Plans most people had a 10K/20K deductible because of the cost of GI and found that with Dirigo and Subsidy they could get coverage that would actually cover some of their medical needs during the year...

You also have to look at how successful Dirigo is less than 10K people when it was supposed to cover over 130K by now...

And the last point....The cost of insurance inside Dirigo really is not any cheaper than outside, the savings come from the subsidy and that money most come from somewhere..Case Study my family of 4 33M, 30F, 4F &1.5F would cost in excess of $1000 a month, Enrollment is not closed to self employed people but there is no subsidy for new people. Last time I looked coverage in NH for something similar was about $300 a month now in NH they could rate me up by 50%(Which is mentioned by Dems in this state every time) but even then it would only be $450. Initially it came as an added cost to those with other health insurance coverage....Its is nuts!