Will Tom Price Create Opportunities for the Agents?

[Monti_Ray]

Hello all,

I was wondering if you guys are seeing a new 'golden age' for the agents are coming soon.

Will short term plans, indemnities, HSA plans bring increasing commissions?

Will medicare supplements become more lucrative to sell?

Any insight?

Monti

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[nylife11023]

Hello all,

I was wondering if you guys are seeing a new 'golden age' for the agents are coming soon.

Sorry, but I see a Dark Ages coming for most agents in all sectors, mainly due to automation.

Will short term plans, indemnities, HSA plans bring increasing commissions?

The carriers have looked at so-called 20 million enrollments in ACA via online systems... probably about 65% vs. those brought to them by agents. They believe that paying for an IT structure (which they already have) is cheaper than maintaining a commissioned (or salaried) sales force. If that is a fact, then agents (in health and term life) or going down the same glory-road travel agents went down fifteen years ago.

Will medicare supplements become more lucrative to sell?

With computer literate and tech-savvy people aging into Medicare, there will be less need for agents to sit down with seniors who will basically talk with their friends who will tell them to buy a Plan X or Y or Z... or such-and-such MA plan, and will go online and do it. My neighbors who aged into Medicare last year and had no problem signing up for their supplement as well as SilverScript PD online... no agent needed... or wanted.

Any insight?

I'd say to get your securities creds and go into retail brokerage, but with robo-advisors becoming more sophisticated I'm not sure how viable that advice would be.

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Since your URL resolves to https://bestinsleads.com/ my best guess is that you are a troll lead-vendor. I sometimes think that half this board is made up of lead vendors!

 

[FLM2]

Sorry, but I see a Dark Ages coming for most agents in all sectors, mainly due to automation.

The carriers have looked at so-called 20 million enrollments in ACA via online systems... probably about 65% vs. those brought to them by agents. They believe that paying for an IT structure (which they already have) is cheaper than maintaining a commissioned (or salaried) sales force. If that is a fact, then agents (in health and term life) or going down the same glory-road travel agents went down fifteen years ago.

With computer literate and tech-savvy people aging into Medicare, there will be less need for agents to sit down with seniors who will basically talk with their friends who will tell them to buy a Plan X or Y or Z... or such-and-such MA plan, and will go online and do it. My neighbors who aged into Medicare last year and had no problem signing up for their supplement as well as SilverScript PD online... no agent needed... or wanted.

It's pretty easy to see why you failed in the insurance business, you simply have no clue as to our value.

I only work part time outside of open enrollment but just in the last week I've spoken with clients who:

• Enrolled in the wrong PDP plan and is now spending over $400 a month for insulin that is not in the formulary instead of getting a plan where it is covered-all I could do for him was put him on my callback list for October to fix it
• Helped a new client save over $60 a month on their Med Supplement, somehow she couldn't figure out how to do it on her own even though she's been unhappy with the rate for the past year.
• Helped two clients resolve coverage issues with Florida Blue that they were unable to do on their own even with repeated phone calls
• Enrolled a long time client now entering Medicare in the right MAPD plan-her thank you email was 'this stuff makes my head spin'.

I also have two close friends on Medicare who have had Silver Script for the past 5 years-each year I ask them for a current list of their meds so I can run a comparison to make sure that Silver Script is still the best plan (as it was back in 2012 when I enrolled them through the medicare.gov site). They finally sent it to me this year during AEP and now have plans that save them about $3K each on their drug costs (along with lower premiums).

It's the consumer's right to decide whether to work with an agent or not, there are plenty of people to go around. Most of my clients have been with me for many years and practically beg me each year to help them.

If insurance companies decide to eliminate agents completely (highly unlikely) it will be a consumer loss because we do things for clients that are unavailable through insurance company call centers.

You have no respect for the good work many of us who participate in this forum do for our clients on a daily basis. I don't really care what you think but will not let your uneducated remarks go by unchallenged, particularly when they are so far off base.

 

[tonyisme]

Wish I had a dollar for all the people who told me they bought the wrong insurance from a website unassisted

 

[nylife11023]

It's pretty easy to see why you failed in the insurance business, you simply have no clue as to our value.

I'll let your personal attack slide.

What you don't understand is that it does not matter what value you bring to the process if those who pay you don't see it as a value to THEM. The clients don't pay you, the carriers do. And if they can get good numbers with an automated system vs. paying sales commissions, that is what they are going to do.

Face facts. The carriers don't value you. If they did you'd be paid what you are really worth. And it is also a fact that that your basic comp rates have either stayed the same the past five years or has gone down. The men and women working in their IT dept., are making more than you are making. Why? Their work is valued... at least more than yours.

[Lots of ego-centric text deleted]

It's the consumer's right to decide whether to work with an agent or not....

This is true. But are you making significantly more money in the health sector now than you were making forty-eight months ago? I rather doubt it, but I'll be happy to be wrong. You seem to want to impress us that you are a 'super agent,' those who pull down six-figures a year. I hope you are. I have no dog in whatever fight you are wanting to get into.

If insurance companies decide to eliminate agents completely (highly unlikely) it will be a consumer loss because we do things for clients that are unavailable through insurance company call centers.

And you think they care? Look how your comp has changed the past several years? Given the rise in the cost of living, has the comp your carriers have been paying you gone up? If so, good. But I rather doubt you are doing as well as you were doing pre-ACA, etc.

You have no respect for the good work many of us who participate in this forum do for our clients on a daily basis.

Vent if you want, but I'm just the messenger of the bad news. What I respect or don't respect is not the issue. The issue is whether those who control your comp respect you (financially) for the "good work" you do?

I don't really care what you think but will not let your uneducated remarks go by unchallenged, particularly when they are so far off base.

Off base? Maybe. But I would submit that perhaps you are living in a reality-distortion field or at least in a state of denial. You are working in a financial sector where the track toward total automation has been being laid for several years now and eventually the final rail will be put in place with a golden spike... and you will be looking for a different opportunity to use your so excellent (so you tell us) skills.

Face it. One of us is going to be wrong. Perhaps you ought to call a couple of your carriers and ask them whom it is more likely to be.

I wish you well... and you will do well... and better... if you perhaps drop the 'tude.'

 

[FLM2]

Face it. One of us is going to be wrong. Perhaps you ought to call a couple of your carriers and ask them whom it is more likely to be.

You have absolutely no concept of this business.

First of all, IFP is a small part of the total health insurance market, both Small Group and Medicare are both stable and thriving.

CMS regulates Medicare Advantage compensation (and has been modestly increasing in recent years) and the Medicare Supplement market is a money making niche for companies like United Healthcare and others, compensation isn't going away for these.

The government tried to circumvent the broker distribution channel with small group through SHOP and it has failed miserably.

You must think professional health insurance agents (and there are many on these forums) hide under rocks, almost all of us saw the reduction in compensation on the horizon long ago and started generating alternate streams of income. The other part that you don't understand is that many of us had our best income generating years in the 2014-2015 time frame when the new system took over, it's far more likely that this will happen once again under whatever new system is introduced rather than compensation going away completely (and that's from carrier reps in the know, not speculation).

I don't need to justify the way I run my business to you (or anyone else) but I work less than 1,000 hours a year at this point in my career and generate more than enough income to live a comfortable life along with having a loyal and stable client base. All you have is what is obviously a dislike for insurance agents (all of your forum posts clearly point to that), maybe it's time to focus more on your current career and try to be successful at that.

 

[mickeyma]

I agree with nylife11023. I have had the same experience. Prospects not answering my phone calls or responding to my brochures because they were told which plans to buy from friends, neighbors, coworkers, medical office assistants, TV ads, internet and seminars.

None of this makes me feel that I failed in the business, as stated by FLM2. If you can't talk to them, how can you sell them.

I'm not talking about a few examples as posted by FLM2. I'm talking about mass production requiring agents to talk to a lot of people. And, I agree with nylife11023 that technology is taking business away from the agent. Do an internet search for a Med Supp plan and eHealth will give you prices from 20 companies. They will also enroll you online. Ditto for AARP.

 

[somarco]

I talk to people almost everyday that are looking on the internet for Medigap rates.

Yet, for some reason, they would rather talk to me than sign up through an anonymous website staffed by 25 year old's that have no understanding of how Medicare works.

 

[leevena]

I believe nylife amd flm both have valid points regarding the value/use of agents, but I see a different future. Technology is certainly taking it's toll on the average agent, and yes many people do not know how to purchase and still will need the help of an agent. But I see a different path for the carriers. I see carriers offering 24/7/365 access to an agent by using some combination of their agents or outsourcing it a third party in a call center environment.

Bank of America just recently opened 3 branches without any people on-site, all transactions will be via machine/technology with the ability to speak with a live person if you need. We live in charlotte and our bank branch has both options available.

Now before anyone goes off and tells me that I do not understand the value of agents, it does not matter, this is just my thoughts about what might occur. But if you look at the trend in many industries and markets, it is already happening.

 

[Yagents]

I guess turbo tax put accountants out of business. Same for nolo.com for lawyers? And Schwab for financial advisors. But seems people still pay them fees for the professional advice in complicated areas of life. Same goes for health insurance which has a direct effect on net worth and quality of health care. Two cornerstones of life. There will always be do it yourself folks, and those who prefer to pay a professional instead. (Excluding "salespeople" from my analogy). Some agents get it, others don't and never will.