Billions have been poured into preparing for this thing. Insurance Companies, agents, doctors, hospitals, payroll companies... Just think of the demolished plans if it was delayed. Billions more have been spent by taxpayers and states. If the exchange flops in an IT Tech sort of way, I expect insurance companies to find solutions, because they need the prospects to turn into placed sales. If it flops because subsidies applications cannot be processed timely, there isn't much an insurance company can do to help the govt fix the problem.
But actually, it would not hurt my business at all if it was delayed. I have a high persistency rate and good renewals, so new sales isn't driving most of my income. I get plenty of inside referrals, so I've never advertised outside of my website and I don't take advances, which lowers my acquisition costs.
I do plan to advertise and market heavily for open enrollment though. I've spent an incredible number of hours preparing for PPACA too, and time is money. Of all the contingencies that could likely happen, the worst for me would be to spend a lot more energy and expense in open enrollment, just to find out on November 15th or so that they are delaying it before the 1/1/2014 effective date. Although the expenditure of time and money would cause a dent in my bottom line, at most it would just be emotionally depressing. But a delay at any other point, like before open enrollment, or a massive change in the system next year, still leaves me with lots of opportunity and a solid block of business.
Personally, I expect it to fall. If not soon, then when the adverse selection hits because they realize that all these young people are not going to flood into the system at these rates. Given a year of claims for pent-up demand and the flood of sick folks, it should be an interesting 2015.
So, I think it's important to be able to pivot on a dime. That may mean having a lot of contingency ideas in case of a major delay, revision or repeal. There are always people needing insurance. The key is to know which funnel they are being propelled through, and be prepared to hold your sack under that funnel and catch the ready leads.
But actually, it would not hurt my business at all if it was delayed. I have a high persistency rate and good renewals, so new sales isn't driving most of my income. I get plenty of inside referrals, so I've never advertised outside of my website and I don't take advances, which lowers my acquisition costs.
I do plan to advertise and market heavily for open enrollment though. I've spent an incredible number of hours preparing for PPACA too, and time is money. Of all the contingencies that could likely happen, the worst for me would be to spend a lot more energy and expense in open enrollment, just to find out on November 15th or so that they are delaying it before the 1/1/2014 effective date. Although the expenditure of time and money would cause a dent in my bottom line, at most it would just be emotionally depressing. But a delay at any other point, like before open enrollment, or a massive change in the system next year, still leaves me with lots of opportunity and a solid block of business.
Personally, I expect it to fall. If not soon, then when the adverse selection hits because they realize that all these young people are not going to flood into the system at these rates. Given a year of claims for pent-up demand and the flood of sick folks, it should be an interesting 2015.
So, I think it's important to be able to pivot on a dime. That may mean having a lot of contingency ideas in case of a major delay, revision or repeal. There are always people needing insurance. The key is to know which funnel they are being propelled through, and be prepared to hold your sack under that funnel and catch the ready leads.
