The Eye Popping 2016 Obamacare Rate Increases Are Out

[Sherota1]

This makes no sense for Aetna to do all that you are saying. They have off exchange plans too, don't they?

This same question was asked at the seminar. Yes they do have off exchange plans. But the only way your clients can go direct with the company is to cut the agent out and call the company directly. We can have our clients to do that but we were told we would not get credit for it. In the Mid-Atlantic states the only way an agent can get credit for ANY business is by going through the exchange whether the client is subsidized or not. I do not know if this is the policy nationwide since many companies compensate and treat agents differently depending on where you live. I think BCBS gives Mid Atlantic agents the worst deal ever $15.75 per contract not per member. A family of 10 yields the same commission as a family of one. It wasn't worth my while to rearrange my schedule and waste my gas so they could lie about how much they love and appreciate the agents. As for the Aetna based companies check with the ones in your area to see if the same rules apply.

And while you can do on exchange plans for people who don't qualify for tax credit, which I do, you can't do off exchange plans on HC.gov

True. The only options they would have are what's available to them on the exchange if they use an insurance agent and want an Aetna based plan.

Lol, that email I got lead me to believe the commissions would be higher.

They are higher if you reach 20+ members. A whole $2. Lower for 19 or less. Less than 5 doesn't even register.
As for whether Medicare sales will count toward the overall total. That question was not asked. The meeting only addressed pre-65 individual health insurance sales. But that's a good question.

 

[Nasha]

You're right; they can. But Aetna is a for profit business and as such should make sound business decisions to increase profits. That's why I think what they're doing makes no sense. Alienating independent agents, who are responsible for "37%" of their business as stated in an above post (if that's accurate of course), doesn't seem profitable.

I hope, for the agents in the Midatlantic, that Aetna doesn't come in as second cheapest Silver plan and that you have many other options for your clients.
90% of my clients are highly subsidized and they appreciate having an agent to call instead of an 800 number. And believe me they call. But I like that (sometimes); it helps keep them on the books. I wouldn't be able to service those clients with a commission of $96 a year. Perhaps a web broker who does 1000's and doesn't service them can.

 

[dgoldenz]

BCBS Gold PPO plan for family of 4, parents 55 year old, kids 23, only $2,812/month. Nice.

 

[somarco]

Nasha, you need to wrap your brain around the new world order where agents are superfluous to the process. And it makes perfect business sense to cut out agents. Easiest way is to cut compensation.

FWIW, with some carriers running 121% LR cutting agent comp won't save their butts.

 

[Nasha]

You make a good point Somarco. But, I think right now agents drive a significant percentage of business and it's a little too early in the game for carriers to drive them away.

No one commented on my previous reference to that merger. I'm surprised.

Btw, 2016 rates are available on healthcare.gov now. It appears to only work for single persons right now. Multi person households appear to give glitched numbers.

Let me know how competitive Aetna/Coventry/Innovation is in the Midatlantic. Maybe you guys won't have to deal with those low commissions.

 

[Tkruger]

Educated agent will place uneducated consumers in the right plan for the consumers needs.

Uneducated, hold on...Just confused consumers due to the complexity of this debacle will inevitably choose the wrong plans for their needs causing them more out of pocket for monthly premiums or Max Out of Pocket costs.

It's getting that Carriers don't want agents involved because more money can be made by folks making the wrong decisions vs. the right...thus increasing profit margins while also adding revenue to offset the sick class of individuals that couldn't obtain coverage.

Lets also not forget that the pricing is getting out of control for the shrinking middle class. A post earlier speaking of a family of 4 at 2,800++ per month for a gold level plan at 401 % FPL costing the family of 4 $ 33,600 per year in premiums alone. This figure doesn't even take into consideration the MOP of that gold plan to add to the total yearly costs. Figure it like this can a household making $ 97,001.00 per year afford to pay $ 33,600++ for health insurance let alone a mortgage, retirement, car payment, groceries, kids, car insurance and so on?

I don't know about you but there is no way I could survive let alone thrive on $63,401 per year! Which consequently places my household less the expenses for health care at the 250% Federal POVERTY Level...

Believe me I understand fully the importance and value of having health insurance.

Let's put things in a different perspective:

Whooo Hooo! $ 97,001.00 a year not in poverty per the federal government...
Dafuq?!?!? $ 33,600.00 a year to cover my family of 4 will cost 34.63% of my yearly income....now I'm in poverty

Yep, makes sense....

 

[AllenChicago]

TKruger that is an excellent analysis and summation. The middle and last part is something the Single-Payer people will start their meetings and rally's with, if one of them passes through this forum.

 

[Tkruger]

TKruger that is an excellent analysis and summation.

I hate it when I do that....

 

[somarco]

It's getting that Carriers don't want agents involved because more money can be made by folks making the wrong decisions vs. the right...thus increasing profit margins while also adding revenue to offset the sick class of individuals that couldn't obtain coverage.

Winner, winner, chicken dinner.

Figure it like this can a household making $ 97,001.00 per year afford to pay $ 33,600++ for health insurance let alone a mortgage, retirement, car payment, groceries, kids, car insurance and so on?

 

[Tkruger]

TKruger that is an excellent analysis and summation. The middle and last part is something the Single-Payer people will start their meetings and rally's with, if one of them passes through this forum.

Single payer is a joke....

Until the providers of health coverage revamp their billing schemes it will never work.

This was supposed to resolve the over billing to compensate for the uninsured and from the provider side it has not. They are still billing $ 80+ for a freaking aspirin.

Everyone is so quick to blame the insurers but fail to see the root of the problem. Provider billing reform needs to happen or nothing will work. Paying the overages to comp for those who don't have insurance was supposed to offset and reduce costs...well those absurd costs have remained constant and providers are not being held accountable.


When was the last time a carrier paid what was billed to a medical provider? You get the statements.... form your opinion based off of that.