The First Victims of Health Care Reform

[HealthGuy]

This is an absolute 100% cluster muther f$@k. What in the hell are these carriers doing issuing policies with no preventative? Personally if they are breaking the law or going around it (with the association card) I LOVE IT. F' Obamacrap.

 

[VolAgent]

This is an absolute 100% cluster muther f$@k. What in the hell are these carriers doing issuing policies with no preventative? Personally if they are breaking the law or going around it (with the association card) I LOVE IT. F' Obamacrap.

So what is the agent's liability for selling a plan that is not compliant with the new law?

 

[arnguy]

Vol, I heard that the offending agent will be drawn and quartered like in the Middle Ages.

 

[Norwayguy]

I think health agents could learn a lot from PC agents.

For them its a volume game......thats why they are pumping out 100-300 apps a month.....how do they do it????

They sure don't do it by buying shared internet leads at $8 a pop.

Your math is interesting, however, again, how does a group broker make it at 5%???

PS. I hate messaging because its so impersonal and can come across as argumentative.

Thats not my intention. I have never done group health so just curious as to how they make it with a 5% commission level.

First there is a big difference when Everyone with an Automobile is required to have Auto Insurance and Everyone with a Mortgage is required by their lendor to have Homeowners insurance...
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John: 100% truthful post. But if these carriers drop commissions less than 10% first year (street level) January 1st 2011, it almost makes working not worth it. Seriously, this is ridiculous. The carriers continue to hope we sell their plans but we don't know what we are going to be paid. Who works for free? Since June, essentially, we are working not knowing what we will be paid.

Check old post from about 2 years ago from Medicare Advantage and Part D Agents when CMS got involved with setting commission rates.

 

[HealthGuy]

Norwayguy: Where is that post?

 

[aheff]

Clearly, we will be taking a huge hit. The question is will it put us out of business. Here's my hope- there will significantly less competition from other agents, since many, if not most will flee. Add that with millions of new prospects buying health insurance. Will we be working harder for less money? Yes. Will we have new business models? Yes. Will the nimble health agent be out of business? Hope not. Time will tell.

 

[Crabcake Johnny]

There's already an exodus. Since I sponsor an E&O program I receive monthly reports including lapses/cancellations. Currently, E&O cancellations are up about 30% over the past three months and I expect a higher percentage after October.

 

[Norwayguy]

Norwayguy: Where is that post?

I spent some time looking for these old posts, but could not find them...But CMS revised the commission structure multiple times during the AEP and not finalizing the commissions until the AEP was essentially over so agents had no idea of comp...Then because MA & PDP plans are sold with an initial commission rate and different renewal rate it was until june july before agents saw the second part of their comp....

 

[somarco]

E&O cancellations are up about 30% over the past three months

You don't need E&O to flip burgers?

 

[Crabcake Johnny]

No, just an apron. I can also tell everyone this; in most cases (about 70% or so...a good guess) individual health agents are not moving to senior, life, etc...sales - they are leaving the industry.

I've also had a lot of rather enlightening calls as to the truth about earning a "six figure" income in other lines such as med supps, life, annuities, etc...