Pass-Through Commissions (NAHU) & MLR

[Full Throttle]

I guess we'll find out what it's like to have a book wiped out. There's really no getting out early, even if you're only maintaining a $5K monthly health renewal book, and doing other things, you're still going to get hit hard when the S-word hits the fan.

All the time and effort to maintain the book and the money that came with it, puff, gone. That's going to be true whether you've been doing this for 5 or 30 years.

Bill,

You are right. I have been diversifying away from health insurance ongoing two years and even if I don't write a dime of health business until 2014 (which will never happen), it will still be life changing to lose the renewals.

I would say I'm in a happy state of denial at the moment. Dwelling on it does no good, so I try to forget about it and work on what I can control each day. I personally guarantee something will get tweaked to keep us in the game. The only way that guarantee is voided is if something does not get tweaked! You can take that to the bank!

If the potential for a losing your health business does not weigh on you, you have no skin in the game and I would argue you were never really in the health insurance business. Or you are in denial about the potential (emphasis on "potential") for losing your income stream.

 

[bill3173]

Bill,

You are right. I have been diversifying away from health insurance ongoing two years and even if I don't write a dime of health business until 2014 (which will never happen), it will still be life changing to lose the renewals.

I would say I'm in a happy state of denial at the moment. Dwelling on it does no good, so I try to forget about it and work on what I can control each day. I personally guarantee something will get tweaked to keep us in the game. The only way that guarantee is voided is if something does not get tweaked! You can take that to the bank!

If the potential for a losing your health business does not weigh on you, you have no skin in the game and I would argue you were never really in the health insurance business. Or you are in denial about the potential (emphasis on "potential") for losing your income stream.

Good to hear your comments. It's like anything else, probably most of the agents on here, have very little or no "skin in the game", and the ones that do are somewhat in a state of denial, like us, or hoping that the deterioration will be gradual. Under the circumstances, that's a big "Hail Mary". It's not like they didn't blow the warning whistle 1.5 years ago.

 

[Bob_The_Insurance_Guy]

Deal! I'll take Mansell. ¡Hablo español!

I got Clairmont and Peachtree Industrial WM

 

[Guest]

I got Clairmont and Peachtree Industrial WM

It's all yours amigo! ¡Tiene un día simpatico!

 

[Full Throttle]

Good to hear your comments. It's like anything else, probably most of the agents on here, have very little or no "skin in the game", and the ones that do are somewhat in a state of denial, like us, or hoping that the deterioration will be gradual. Under the circumstances, that's a big "Hail Mary". It's not like they didn't blow the warning whistle 1.5 years ago.

My hope is for a slow deterioration, but I'm planning for it all to go away. If all my health commissions disappear tonight, I'm screwed. I will have to dip hard into savings to pay the bills. I need more time to build up a new base and renewal stream.

My plan was/is to build up the base on the other side of my business, now my primary focus (life/securities). My goal was to be in a postion by Jan. 1st, 2014 where I didn't need any of my health renewals to pay for my current cost of living and have all future renewals go to a seperate checking account that would be deemed "investments".

If there is still money to be had, use it to get ahead in life at a much faster clip. If no money is to be had, I would still be okay. There is only a little over two years to go until Jan. 2014 and I still have a long ways to go.

 

[Yagents]

Here is your quote of the day. I think the rich Rockefeller's should subsidize the American Agents Act.
[FONT=Verdana, Arial, Helvetica, sans-serif]"The feds have decided how they're going to handle the broker agent issue. And while there may be members of Congress willing to fight the good fight for the brokers and agents, at the end of the day Jay Rockefeller is not going to let this change."[/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]— Bruce Merlin Fried, a partner in the Washington, D.C., office of SNR Denton US LLP[/FONT]

www.aishealth.com

 

[Yagents]

Consumers won't pay a consulting fee for major med, especially once it is available on the Exchange and they can talk to $10/hr govt navigators.


Get ready to justify that fee. Check out Arkansas article:

Alice Jones, spokesperson for the Arkansas Insurance Department, confirms to HRW that the state is considering a bulletin "which proposes to permit the agent or broker to collect a 'compensation fee' directly from the client/group as a consultation fee. We are seeking feedback and suggestions from health producers and brokers so the commissioner can decide what is in the best interest of Arkansas consumers."
------
Specifically, brokers might find it more difficult to justify the compensation they're getting for selling a product every month if it's separated out as a line item, Tuomala says. Once employers know how much they're paying brokers for their services, "they may want to ratchet that down if the amount is higher than they might like it to be," or if they feel they're not getting value for the amount of broker fees they're paying, he adds.
http://aishealth.com/archive/nref091211-01-0

 

[CHUMPS FROM OXFORD]

I don't like the direction this is heading...which is why all of you better get out of this side of the business.

 

[bill3173]

It may not be as bad as you think, the gov may set the fee higher than what the carriers are currently paying. If you get a set fee say $400 per plan, regardless of age or plan premium, then you'll be better off.

The certification process may be something similar to what we have now with MA, PDP, which would thin the numbers of agents offering the plans.

It would be funny if individual health agents actually came out ahead on this thing.

 

[somarco]

You may be right Bill, but who knows at this point?

Based on the hassle factor for MA/D plans, the commission audits, marketing rules and not knowing what, or if, the plans you are studying will be available the following year it doesn't look like a lot of fun to me.

And starting next month some lucky agents that want to expose their life to govt scrutiny can collect $100 one time fee for PCIP referrals.

I decided to pass on that one as well.

But as I said, you may be right. Life might be better than it is now.