Vermont Exchange $15 Per Person $10 in 2015

[stuy119]

What's the name of the emotion "I'm glad to have predicted it accurately, yet disappointed to be right"? I still believe almost all marketplaces will be flat fees...

I'm honestly surprised almost 4 out of 5 business owners said they would do without a broker at 4% commission. Do they realize how much they utilize broker services?

What business owners don't take into account is that they will not see a decrease of 4% on their bills (the carriers will keep it for the extra costs of dealing with service issues), and they will be spending more time waiting on hold because of the additional calls that are going into the carriers.

 

[RayNY]

If they mentioned premium wouldn't change, just the back-end distribution of funds, more than 78% would have said they wanted brokers.

That's not the result they wanted, so it's not how they posed the question. They want reasons to justify getting rid of brokers.

 

[AllenChicago]

Are they out of their ever-loving minds? Who will waste their time for $15 or $10 a month?

Duaine, Vermont heard you and responded..with a commission INCREASE! Great job!

Friday, July 19, 2013
"The state has set the cost of using an insurance broker in the new health insurance market at $20 per person, per month and health officials plan to dole out $2 million in federal money to subsidize small businesses that want to use a broker. On Jan. 1, 2014, it will become illegal for health insurance companies in Vermont to bake broker fees into their rates."

Article: State sets fees for insurance brokers involved in health care exchange

-allen

 

[Yagents]

This move only screws the client, and pads the insurance company's pockets. I don't see why they did this given the 80% MLR requirements.

Ex:

Before: $400 premium with 5% or $20 going to broker, and 15% or $60 going to insurance company.

Now: $420 total cost to client, with $20 to broker and $80 to insurance company.

Client pays more, insurance company makes more. Idiots I tell yah

 

[AllenChicago]

It's likely that when an applicant obtains a quote, they will be presented with the premium without the $20 per family member broker cost, and the premium with the broker cost.

Not sure if this disclosure will occur before the subsidy amount (if any) is deducted to show the final premium for the insured, but the insured will be able to chose then and there whether to include, or exclude the broker. Of course we know what most IFP applicants will choose.

Thank-goodness Vermont isn't a "normal" state!

 

[Yagents]

"You will be able to use a licensed agent or broker to provide help or handle your SHOP business," the SBA says. "You won't pay more if you use a SHOP agent or broker."
For users in Vermont, a state that is trying to eliminate small-group market broker commissions, the SBA makes no mention of agents and brokers.


Feds add exchange employer site | LifeHealthPro