Is Individual Health Market Toast?

[Paul Anderson]

TXINSURANCE commented that a lot of money is being spent on new plan designs and infrastructuire by the companies.

Actually this scares me a little. When Hillary was promoting her Univeral Health Plan in the 80's, her idea was to put each of us in a plan, according to regions, which would be administered by one of the five carriers who would be allowed to continue to exist. At that time many of the large carriers were scrambling to put themselves in position to qualify (also backing the Clintons so they would be chosen).

Not to long ago I was at an Assurant Health seminar and they told us they were cutting rates in Michigan as part of a project to bring more uninsured in to their book to help spread the risk. That could work but I couldn't help think that they were also trying to position themselves as one of the large players so when Univeral Health takes hold they would be in a position to be one of the few carriers administering the plan and getting Billions from the government. Currently I don't hear the carriers speaking up enough, nor do I hear them educating the public about the downsides of Universal Health Care, the fact that it hasn't worked in the European Countries or even in the few states that have tried it.

I am generally not negative by nature but I am worried. If this adminstration manages to put some type of Universal Health Care in place we may never be able to dismantle it.

Social Security was the right thing to do but the way it was created is fundementally wrong. Still we can't seem to stop it or change it. SCHIP was a good intention but implemented wrong, now it is insuring more chidren that had insurance than children who didn't and it's purpose was to cover the uninsured. The same goes with all our government entitlement programs, once instituted there doesn't seem to be any way to go back. I doesn't matter that Universal Health Care could not be done as efficeintly, that the country can't afford to do it or that the end result may be worse that what we have, I'm afraid good people with good intentions are about to put in a bad plan we will get stuck with. This will be done without the help of agents.

I'm not suggesting we roll over and play dead, we need to start educating our clients now.

 

[TonyC]

Actually . . .

I have been in communication with the mother ship. The invasion is not slated to begin until the govt turns off all analog TV transmissions.

Bob....you are funny!

 

[motoxxx]

Whew! I just found that tin foil hat I had been looking for!

 

[jackflashdrive]

I'm not suggesting we roll over and play dead, we need to start educating our clients now.

Great post Paul -- really great post -- except for the end. The plan should not be to educate clients, the plan should be to (1) work your ass off between now and what might be doomsday, and (2) start thinking about a backup plan.

Let me tell you: I've been in a VERY analogous situation to this before -- made a killing for a few years when everybody thought the parade would last forever. Then the Republican Congress passed legislation that -- while it didn't entirely kill the profession -- it killed it for me and many others. I wish I put in the hours when they were available. I could be a millionaire right now.

I'm not going to make the same mistake with insurance. I see it for the opportunity it provides, and I'll work 16 hour days if I have to because friends there are definitely clouds on the horizon.

The man has a mandate, and the last few weeks amply demonstrate that he intends to use it to fulfill leftist dreams (#1 of which is some sort of single-payer health care).

 

[Paradigm]

I wouldnt worry single payer is unlikely currently. It would hike taxes considerably and in a declining GDP period tax receipts will drop anyways.

Second the infrastructure does not exist to implement it. While some leftist definitely want to tax much more progressively the reality is that cant kill the engine that drives the economy which is capitalism no matter how much they hate it.

Third I dont believe the agent channel can be eliminated because the average American is uninformed and ill prepared to make their own choices. They will always need hand holding and direction.

Fourth the major companies wouldnt allow it despite Obama's alledged mandate. The anger of the people is growing as government in general is seen as incompetent for their mishandling and pork politics in both the TARP and stimulus legislations.

Fifth as long as agents rainmake business for companies...they will always be needed becaus ethe agent force isnt a cost to companies like an administrator..we are business and profit generating centers.

 

[InsuranceBenefitsGroup]

Consider learning (if need be) to cross sell. Life is a must, annuities (everyone's 401k got whacked, roll it over) and even life settlements. There are annuities that pay the owner 10% on top of their deposit, then a guaranteed rate until they take withdrawals. 8% commission on $100,000 aint bad. I just did a life settlement for a guy that got crushed in the market and with real estate losses. He sold his $4M life policy (life settlement) Commission you ask? $4M x .06% = $240,000...no sh*t.

 

[Vanbret]

One thing I'll say, is that you have to remember that the insurance industry has more money than God. And you better believe they are involved in politics!! I don't think for a second that all these companies involved in the Individual Health Market are going to just bend over and take it from the government, as they cut into their profits!

Things may change and evolve, but there WILL be a market for us to sell in. Even if it means selling products that haven't even been made yet.

 

[motoxxx]

I wonder how many people will let their individual health coverage lapse just because they thing the Messiah has solved their coverage problems already. I have received about 20 phone calls from clients asking me when they can stop paying their premiums because of what they are hearing on the news.

Anyone else experiencing that?

 

[bill3173]

He sold his $4M life policy (life settlement) Commission you ask? $4M x .06% = $240,000...no sh*t.

They paid him the full face amount of the policy and paid you a full LS commission on top of that?

Wow, did they buy you a new car too?

 

[HealthGuy]

It is amazing how this country operates on soundbites from the Messiah. Are we now in North Korea where we all receive our direction from on high? Will the great leader next give us a bowl of rice? Many mindless people. Except for Al3. He is the only intellectual on the forum. Oh sorry Al3, I'm sniping you again.