The Role of Agents and Brokers in the Market for Health Insurance

[Sam]

The jist is 'small businesses that work through brokers pay less for their group coverage, on the average, than those who don't'

I didn't read anything else in the report that had anything of interest to a health insurance broker.

I think you are severely understating the value of the information they present. They are doing empirical research and based on extensive data, they are proving that when you have agents and brokers highly active in a small group market, then the consumers are more likely to pay less. The involvement of agents and brokers more than pays for itself.

This is the kind of research that can support removing commission from MLR because there is empirical evidence that there are economic benefits from their involvement.

I also plan to keep this around to show groups of all sizes that ask why they should work with a broker instead of direct.

 

[Yagents]

I conducted my own survey:

Results: 100% of my clients saved money when they became my client initially

 

[Sam]

Bill, I hear you, but this is different. This is saying that agents and brokers actually depress the underlying pricing on an aggregate basis. The existence of use expects in the slipstream actually impacts the underlying costs, and that creates savings aside from those base on moving companies, plan designs and other strategies, using your superior knowledge.

 

[AllenChicago]

Bill, I hear you, but this is different. This is saying that agents and brokers actually depress the underlying pricing on an aggregate basis. The existence of use expects in the slipstream actually impacts the underlying costs, and that creates savings aside from those base on moving companies, plan designs and other strategies, using your superior knowledge.

I see ur point Sam..
Police Presence = Reduced Crime (Generally)
Broker Presence = Reduced Premiums (Generally)
-ac

 

[RayNY]

Moral of the story is, brokers allow consumers to make a decision with a closer approximation of "perfect information" than they would on their own. Better consumer information leads to more effective market forces regulating pricing.

It's sort of like how Apple iPad commercials don't tell you pricing, capacity, any stats, etc. On paper, there are better options available, and with the information, many would go another direction. Brokers are the insurance equivalent of your knowledgeable friend that points out the options that might fit your needs better, even though it's not a brand you had on your mind.

This is more than a mere presence influencing pricing, this is our influence modifying the economic ecosystem surrounding health insurance. It's more akin to police actually arresting bad guys and making the world safer, than standing on a corner and deterring would-be criminals.

 

[Ronnie Carter]

Moral of the story is, brokers allow consumers to make a decision with a closer approximation of "perfect information" than they would on their own. Better consumer information leads to more effective market forces regulating pricing.

It's sort of like how Apple iPad commercials don't tell you pricing, capacity, any stats, etc. On paper, there are better options available, and with the information, many would go another direction. Brokers are the insurance equivalent of your knowledgeable friend that points out the options that might fit your needs better, even though it's not a brand you had on your mind.

This is more than a mere presence influencing pricing, this is our influence modifying the economic ecosystem surrounding health insurance. It's more akin to police actually arresting bad guys and making the world safer, than standing on a corner and deterring would-be criminals.

Cool. I feel much more important now than when I got up this morning!!