Scotus: Subsidies upheld

[Ann H]

I agree with you FLM2, although I see a light at the end of the tunnel.

I try to keep my eye on the 3 most important factors in my business:
1. Protecting and helping the clients get the best value available currently
2. Making money
3. Navigating the future

How does 0% commission happen?

1. One carrier dominates that state's market
2. Stupid carrier decision to block the agent, but there are other carriers in the market.
3. National Single Payer

I'm not too worried about National Single Payer. In that case, the 0% commission is simply transitory, as Supplements enter the market just like Medicare has a supplement. Besides, Single Payer doesn't happen overnight. If a law like that was passed today, it would take years to implement it, just like ACA was passed in 2010 but 1/1/2014 was the first effective date.

I'm not too worried about stupid carrier decisions either, in a market where there are other carriers competing. Carriers that cut out the agent soon learn the value of agents and reverse their decision.

It's carrier compression that's worrisome. When one carrier dominates the market, there is no commission paid to the agent. Ask agents in ME, MA, VT, RI, etc. So, carrier compression is our real worry.

 

[somarco]

How does 0% commission happen?

1. One carrier dominates that state's market
2. Stupid carrier decision to block the agent, but there are other carriers in the market.
3. National Single Payer

4. Dominant carrier with 90%+ of the market stops paying commission. Agent can still offer carriers B, C & D but has an uphill battle trying to make enough sales to compete with the $0 carrier.

And yes, carrier compression has always been the concern because of the commission compression that follows.

 

[RayNY]

On the 0% commission front:

It happened here in NY already. Emblem Health chose to cut all broker comp last year.

After severe backlash from the broker community, they brought it back, although it was far less than before. This year, again, they've filed for 0% SA and GA comp on individual products, on or off exchange.
Rate filing, page 24 (by pdf pages, not page numbers).

Other companies chose to not offer any comp on certain products. Of course, these are the most in-demand products (low priced platinum from our co-op, for instance) in an attempt to drive enrollment into the products that make them more money.

Other companies chose not to offer any comp on entire classes of business, like groups of 5 or less.

 

[Yagents]

This will solve the problem, make the SCOTUS justices be on O'Care:

Lawmaker to Supreme Court: You go on Obamacare!

 

[scagnt83]

This will solve the problem, make the SCOTUS justices be on O'Care:

Lawmaker to Supreme Court: You go on Obamacare!

All federal workers should have to go on Ocare, including SCOTUS Congress & the Pres/VP.

 

[HealthGuy]

Seriously Guys, don't you think this is just a legislative stunt? Come on...

 

[Yagents]

My comment was sarcasm..................

 

[scagnt83]

Seriously Guys, don't you think this is just a legislative stunt? Come on...

Of course it is. Doesnt mean it shouldnt happen though. If it is good enough for the american people it should be good enough for our branches of gooberment. Make off exchange unavailable and eliminate the gov sponsored healthcare. Create a separate government worker subsidy and make them all go through the exchange for their coverage.

 

[AllenChicago]

On the 0% commission front:

It happened here in NY already. Emblem Health chose to cut all broker comp last year.

After severe backlash from the broker community, they brought it back, although it was far less than before. This year, again, they've filed for 0% SA and GA comp on individual products, on or off exchange.
Rate filing, page 24 (by pdf pages, not page numbers).

Other companies chose to not offer any comp on certain products. Of course, these are the most in-demand products (low priced platinum from our co-op, for instance) in an attempt to drive enrollment into the products that make them more money.

Other companies chose not to offer any comp on entire classes of business, like groups of 5 or less.

The fact that Emblem reversed course, and other carriers acknowledge the significant influence agents have on enrollment, has to be somewhat comforting? New York agents aren't being viewed as irrelevant nobodies.

 

[SamIam]

Plus I'm sure the agents handle a lot of customer calls that save them money from hiring more people. That being said right now I take the calls regarding claims but if my comp went much more lower I wouldn't be able to and I'm sure most agents are in the same boat.