Will There Be Health Plans Offered Outside of the Exchanges?

[insurehound]

That's how I read it as well.

So, Health Insurance plans outside the exchange will probably never be developed. Think about it. If you were an insurance company, why would spend money and resources developing a traditional-style Health plan outside of the exchange? Especially if you have to comply with most of the same rules for plans sold inside the exchange - it's not worth it. Sure supplemental plans will be available but that's not going to cut it.

In short, we are screwed...if we are going to rely on the Goberment to compensate us appropriately for selling exchange products, you have another thing coming.

Anyone think differently?

 

[669comche]

Its not over until the fat lady sings.

There will be an opportunity to make an income.

Whether its selling exchange plans, non exchange plans, or supplemental plans. Since when did the citizens of the USA sit back and take what the government gives them?

Come the revolution brother!

Until I get my notice in the mail that I am not going to make any money selling health insurance its business as usual.

 

[Crabcake Johnny]

There is only one way health insurance agents will be out of business. Universal health care. Until that day we're in business.

 

[insurehound]

healthagent & 669comche...good for you. Meantime, I'll work on developing my other insurance lines so that when the carriers cut our current comp by 50% and tell us that we can sell Exchange plans for $5 per application/Group, I won't be singing the Blues and playing the part of the victim.

 

[Crabcake Johnny]

I was only addressing those who say that we will be "out of business." They might be - I won't.

 

[669comche]

healthagent & 669comche...good for you. Meantime, I'll work on developing my other insurance lines so that when the carriers cut our current comp by 50% and tell us that we can sell Exchange plans for $5 per application/Group, I won't be singing the Blues and playing the part of the victim.

I am still in business and still plan on being in business even after all of the changes - Change is inevitable, growth is optional.

 

[jbage007]

For those of you too young to remember, our commissions were cut about 50% in response to HIPAA back in the mid 90's. But premiums kept going up and income was fine.

Along those lines, just rec'd notice from one of our California carriers (one of da Blues) that their 10/1 rates are going up an AVERAGE of 23% across the board.

So far, no word on them about commission cuts, but you can take a decent chop with the size of premiums going to where they're headed.

 

[Central Coast Agent]

I tend to fall on the optimistic side of the camp as well.

There has been an exchange in California for something like 20 years...and its not a significant competitor by any means. Granted there are no gov't incentives to use the exchange, but it is a good indicator that people prefer to use agents for purchasing insurance rather than the gov't.

Also, just speculating here after reading the part about excepted benefits...I'm sure some MBA in an insurance company marketing dept has made the following connection:

If excepted coverage needs to be secondary or incidental to other coverage to be "excepted" from PPCAA Exchange reqs then how about a Life/Disability Combo plan with an add on "medical rider". This product completes the "triad" of insurance protecting your life, income and health...

See, that's how things are most likely going to play out...where one door closes five more will open because when it comes down to it, we are still a capitalistic powerhouse of innovation and market centered thinking.

There will be new products to sell. Markets evolve.

 

[HealthGuy]

Central Coast: This sounds nice in theory, but tell me - when medical rates skyrocket by like 200%, even with a subsidy, who is going to be buying your ancilliary life and disability policies when health premiums become artificially inflated by this bill? Who is going to have any money left to buy anything? Realistically, I don't see the capitalistic powerhouse working in this new paradigm. Prove me wrong, I'm all ears.

 

[669comche]

I too am a little more optimistic as well.

Even with the subsidies if you haven't got the money to buy these plans then there has to be an alternative............just because big bruver says insurance is now "mandatory" does not mean everyone is going to follow the line and buy this coverage.

As for me, I will take the penalty and secure coverage through some other means..........I am sure not paying 12k per year (subsidized) for my family of 6!

There will be alternatives (just like there are today)