Will Commissions Go Lower?

Yagents

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5000 Post Club
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Arizona
Any lower, and I move on to other products. I'll leave it.

Some Blues Plans Further Reduce Broker Commissions, Beef Up Internal Sales | AIS Health

Online insurance exchanges, combined with in-person assisters and navigators, have created a variety of new distribution channels through which individuals and small employers can buy coverage. Blues plans and other carriers "feel they are in a position to reduce commissions and tell agents they can take it or leave it," he says. "Some of this is tied to MLR, but the larger issue is reducing overall expenses, and broker commissions are seen as low-hanging fruit."
 
Health insurance sales is something I do pretty much if asked. Washington state long ago pushed commissions way down. Most of you guys were making double digit commissions when I was making 3%. With the ACA they've pushed them down even more. After this first round and the painful amount of time it took to get things to work, I've pretty much decided not to put much into marketing for it nor doing much more beyond referrals and current customer services. The commissions don't pay for the time.
 
Any lower, and I move on to other products. I'll leave it.

Some Blues Plans Further Reduce Broker Commissions, Beef Up Internal Sales | AIS Health

Online insurance exchanges, combined with in-person assisters and navigators, have created a variety of new distribution channels through which individuals and small employers can buy coverage. Blues plans and other carriers "feel they are in a position to reduce commissions and tell agents they can take it or leave it," he says. "Some of this is tied to MLR, but the larger issue is reducing overall expenses, and broker commissions are seen as low-hanging fruit."

Anyone in their 20's, 30's, or 40's with a long term need to have a career is crazy to stay strictly on the health side of the business, IMO-if I was planning on working going forward (I'm not) I would start marketing other products to my current client base, it will take some time for those efforts to bear fruit but long term is a much more solid market.
 
It seems like the Blues are especially intent on cutting our throats. If they don't need us, so be it. I'll send my business to companies that value brokers.
 
BCBS for MD/DC/Northern VA pays $15.75/month per contract. Last year they paid $19.75/month per contract. The year before it was $23.75/month per contract. The lower commissions also apply to in-force policies. Going to write my check for this Ferrari now...
 
Oh come on man! Don't you know that lower commissions, no advances, ect. just make it better for those agents who have a good book now? It forces new agents out of the business or into other lines like markets you are talking about moving into, the ones everyone else is going. You've got a goldmine! :goofy:
 
BX doesn't need agents in a GI market. Look at the handful of states that (prior to 2014) had GI and you will see Blue as the dominant player with a couple others sharing the remaining 15% or so of the pie.

They have every intention of creating a virtual monopoly going forward in the IFP market and that will be accomplished sooner rather than later.

Might be a few hires for career agents, but the independent agent planning on earning any kind of $$$ from BX is not in touch with reality.
 
I have never met a more spiteful company than Anthem. Their commissions sucked and were the lowest in the area even before Ocare hit.
Many of the providers for dentistry here got upset and won't even take their plans anymore.

I hardly ever sell Anthem anymore, I hope to see them fall on their ass...
 
Just wait until their non-profit status is taken away, then the poverty cries will really get louder from the Blues.
 
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