We Will......survive!

[Yagents]

The disclaimer would not absolve me of all liability, act as fiduciary like a CPA or lawyer, and work with what is disclosed to you. You don't get sued if you do business correctly.

No double dipping. (commish OR fees, not and).

Only clients that have no rate increase, no change in income, and no change in health will NOT need your services. I only see that trifecta in 10% of your clients.

If I teach 'maw and paw' to maximize their subsidies and how to match a plan to their health conditions.......I more than make up the fee. There will be an angle, figure it out, and you're smarter than I.

If you don't think you add value and can justify your commission now, then get out of the business. Because once your income becomes transparent, you'll have a tough time surviving.

Mr Pres.....Dreamers built it themselves.

 

[somarco]

act as fiduciary

Unless you are managing their money, you are not acting in a fiduciary capacity.

You may prove us all wrong, but having been on both sides (consulting and commission agent) I can tell you that the road for a fee only adviser in the capacity you describe is something that will not be easy. Even more so when advising on a commodity product.

 

[FLM]

the business model going forward is very simple whether agents are compensated or not for enrolling in the exchange (I think we will but renewals are probably going away after a few years):

become an expert in the Exchange rules, help your clients get their subsidy, and cross sell all of your other products.

How difficult will it be to show them how to 'downgrade' from a Gold or Platinum plan to Silver, save $250 a month, and add Accident and Critical Illness (plus Life Insurance and maybe Disability) for half of those savings? You would be doing the right thing because the only real difference in the more expensive plans will be the deductible and that will only apply to hospitalization (for the most part).

A fee based system won't work, people don't perceive much (if any) value in health insurance brokers.

 

[djs]

How often have you paid a fee based car salesman? Yes, they exist, but they specialize in niche cars, not the average, everday Ford Focus or Toyota Prius. Those are done by the commission salesman on the lots.

I think the market for fee based health advisors is going to be similar. If you think, even for a moment, ma and pa kettle are going to cough up money for advise, well, I doubt it. Now, a business? Hmm, that will probably happen, if you can provide value.

Dan

 

[Ann H]

I agree that the transition to fee based consulting will be hard, because clients are accustomed to getting our advice for free. It may be better for businesses and higher-income individuals who are accustomed to hiring lawyers, accountants and the like, and who often prefer the professional route over the commissioned sales route. Businesses use the fee based model often for HR consulting, COBRA administration, etc.

I have respect for Bill (Yagents), and have found him to be smart, proactive, and reputable. If anyone can do it, you can, Bill. The "seminar" approach may be a good vehicle to meet potential clients and gain trust. Often prospects get to "know" the speaker by attending seminars, then hire the speaker for fee-based consultation.

Personally, I think we will be compensated in 2014 and after, but I worry about long-term renewals. About the time the govt decides to fire us, a new private insurance alternative should be arising to fix the problems in the govt run health care. It's cyclical.

 

[Yagents]

Thank Anne for the confidence. I've already been through the experience with commissioned stock brokers moving to fee based financial planning. It took a while, but people are more open to paying a transparent fee, vs being skeptical of being sold something for free.

Start polling your clients, see what they say.

 

[bobson]

Thank Anne for the confidence. I've already been through the experience with commissioned stock brokers moving to fee based financial planning. It took a while, but people are more open to paying a transparent fee, vs being skeptical of being sold something for free.

Start polling your clients, see what they say.

The exchange has 4 plans. How much of a fee can you charge for pointing that out? The CPAs and other tax experts will be debating the subsidies and how to get them.

 

[Yagents]

And I'll just rely upon folks like yourself not knowing the law very well, and therein lies the advantage. Hint for others: AV

 

[TonyC]

1. Hmmm....i didn't know that you can charge as a fee based consultant and operate as an insurance agent? Might be a little sticky. Lets see what the gov. allows.

2. How long do you think it will take UNCLE SAM to pay you (if ever)?

...just saying

 

[somarco]

Tony, some (all?) states allow you to charge a fee that is either offset by commissions or in lieu of commissions. Obviously a fee is an add-on and very visible to the client.

Some states, GA being one of them, require a counselor's license.

At one time you could have a counselor's license or an agent's license, but not both. Not sure what the deal is now but I suspect that has been relaxed a bit. I know some life agents that offer to work on a fee basis or commission and let the client choose.

They are usually working high end business or estate planning, or in some cases retirement planning. No kitchen table, mom & pop stuff.

Usually a lot of "image" associated with that kind of practice. A real office, networking with attorney's and accountants for referrals. No in home or over the phone consults. Client comes to their office.