Are Health Insurance Agents Going to Get Rich?

[binky1]

Although I've had two pretty good years after the commission reductions in 2010 it's clearly time to move on, there are way too many uncertainties regarding 2014 to logically construct a business plan around health insurance.

I was on a conference call yesterday with a Blue Cross Blue Shield of Florida sales director and he was talking about how well positioned they were, how agents were an important part of their strategy moving forward, yadda, yadda, yadda. Meanwhile, they had another 25% commission cut in January and have reduced renewal commissions to almost nothing.

I'll take certainty, in terms of commissions and products, over uncertainty any day.

Bye, bye, health insurance, hello, life insurance.

This is a great point. I don't think every member on the books will instantly move to the exchange. Some will stay on the books for a while (how long is uncertain) but it will allow a transition to work other lines of business such as life, ltc, medicare supps, final expense, ci etc....

 

[somarco]

I wonder when eHealth will pack up and turn off the lights?

 

[Crabcake Johnny]

I wonder when eHealth will pack up and turn off the lights?

No time soon:

EHealth Wins Contract To Help Run Federal Health Website - Kaiser Health News

 

[somarco]

I believe eHealth bailed out of that deal (healthcare.gov)

 

[Crabcake Johnny]

I believe eHealth bailed out of that deal (healthcare.gov)

I tried to find some info - didn't come up with much on a quick search - but this on their LinkedIn:

eHealthInsurance | LinkedIn

"In the government market, eHealth, Inc. provides the foundational exchange components required by all state exchanges. Using eHealth’s Exchange Utilities, states can simplify the build and ongoing maintenance of their insurance marketplaces, and easily connect their constituents to the right plans and programs."

 

[Yagents]

EHTH stock is up 16% since the scotus decision. they did bail on healthcare.gov, but i believe they are selling tech to the states

 

[HealthGuy]

Wowie zowie, I love E Health. The most ethical company in the universe.

 

[russelltw]

With what Al said, how will people be getting good advice on what best suites their needs? I am amused at how people think insurance works (ex: will my accident plan cover my pregnancy if I got pregnant accidently??). I have been in the industry for 10 years so I hope my advice is worth something.

One of my carrier's direct sales gives questionable or downright wrong info about their own plans. Often the turnover is so bad that there are very few that really understand the plans and since they don't deal with customers after the original sale, how do they learn their advice is bad??

My experience is that direct sales try to push the highest priced plans. I often have insureds come to me after signing up with direct (while paying a tremendous premium) frustrated at what they are paying. After a short conversation, I often find them a better plan that fits their budget and needs while staying with the same company. They are happy with me, but pissed at what they were advised from direct to buy before.

R

 

[Ann H]

...will my accident plan cover my pregnancy if I got pregnant accidently??

Now, that's funny. Thanks for the good long laugh that brought me this morning!

My experience is that direct sales try to push the highest priced plans. I often have insureds come to me after signing up with direct (while paying a tremendous premium) frustrated at what they are paying. After a short conversation, I often find them a better plan that fits their budget and needs while staying with the same company. They are happy with me, but pissed at what they were advised from direct to buy before.

You're right. Direct sales ultimately builds our businesses if we have patience. Once a client moves to a good agent from a "direct sale" they rarely ever try the direct route again.

 

[DrXof]

Does the $95 tax apply to people who already have an individual health plan in place? I can't get the answer to this. "certain grandfathered" plans ... what are those? Apparently you don't have to buy insurance from the exchange, but then ... if you don't, do you get that tax? I have a couple of high rated plans that PPACA exempt to offer ...