Anyone in California Go To The Warner Pacific Reform Meeting?

[insurehound]

...if so, any thoughts? I had business to take care of so I could not go but other people from my office went. From what I understand, some of the "take aways" from it were:

1.) Any chance to repeal the Bill is long gone
2.) It will take forever to implement the Bill
3.) The Bill will most likely look much different in 2014 - there will have to be some changes and compromises to make it work
4.) Individual Health will be the hardest hit (commission wise)
5.) The agent will be involved through the exchanges...to what degree no one knows
6.) After 2014, who knows???

One of my associates said that Mr. Nelson was very slick...had a very expensive suit on My associate said that he was with him all the way up to the point that the "I love you man" started, especially the part that you (the broker) would work for free if you knew it would help your client LOL

Although I understand the meeting was well done with lots of good info so kudos for them for putting it together.

The critic in me would love to know what deals big GAs have struck that we don't know about. IMO, they want us to keep selling so that they can keep selling and will say anything for that to happen.

Anyone else have any insight on the meeting? What did you think of the meeting?

 

[Central Coast Agent]

I went to the Woodland Hills event. It was a drive for me, but several agents I know had been to some of the other ones and said it would be worth it.

I felt it was for a couple of reasons. First, you were pretty much correct in the take aways from your agents...not in a negative way...I think they were being honest in their assessment that nobody really knows how this bill is going to play out in implementation and enforcement.

The seminar ended with Mr. Nelson stating that "Your gonna be O.K." He may be right. I'm sure he can pick up the phone and call a carrier CEO and get through. I can't. He may be privy to information that has not been released yet...I'm an optimist, so when someone tells me I'm going to be "O.K", I believe them and hope for the best...but I also prepare for the worst.

There really is not much choice but to keep selling and keep positive till this bill evolves and we know more. Right now, we don't know much.

I did follow up with a couple of my carrier reps after the meeting. I trust my reps and believe what they tell me...I'll take the hit on that if I'm found to be naive.

Basically, what I understand from them and the seminar is that small group will probably do ok with this new legislation, as it operates within the new MLR's. Individual, due to the weak individual mandate, will suffer if the mandate is not strengthened....meaning that you won't see too much of a change in group commissions but on individual you could see a drop from 20% with 10% renewal to a flat 13% or even 10% for new and renewal business. With GI on individual, you will have higher volume and higher premiums to make up for the commission cut.

That being said, the above scenario does not take into account the effect the exchanges will have. Something that the seminar and my reps have been pretty silent about...very silent. This concerns me. I understand its because they honestly don't know the answer and its not because of some conspiracy...nobody knows how the exchanges will effect agents. One rep I have feels that they have tried exchanges in the past and failed, so this is no different. Some believe there will be plenty of business outside the exchange with new products.

My bet is, and I hope I don't have to eat my words, is that the individual and small group market will continue to be vibrant to 2014, you will see a downward shift in commissions when the new MLR's kick in, but not bad enough to drive you out of business. After 2014, you may have serious upset in the individual and small group markets if the exchanges are imposed as currently outlined in HCR, and that business you wrote in those markets will be less profitable but your revenue will be augmented by ancillary products and new innovations offered outside the exchange.

My rosie attitude is based on this simple concept: When one door closes, another door opens. I'm sure there will be plenty of opportunity post 2014 for brokers...a new landscape, lower commissions, but opportunity just the same.

So,

 

[insurehound]

I agree with you...my problem is that I am cynical. I trust very few because I see the worst that money brings out in people.