The First Victims of Health Care Reform

[Crabcake Johnny]

Just working up math for selling individual health at 5%. It would average out to $150 per app.

Even for $1,500 a week gross that's 10 apps. You could take all the health insurance producers in the country who are currently writing 10 apps a week and fit them in the same phone booth.

Even if you could write 10 apps per week, where would they come from? Even if it only costs $50 to gain a client, that turns the $1,500 gross into $1,000 net...then taxes.

 

[669comche]

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.

 

[Crabcake Johnny]

It's been discussed by me and a few others that this is a much needed cleansing. No more advertising for "six figures part-time" and no more GAs living in apartment B-1 plastering the net with "200% Advances!!!!"

That's done. What's well have moving forward - especially come October when advances go to 3 months is career agents.

But you already stated the reason health insurance agents will have problems with volume. They're internet lead junkies and like you said, there's no model for $8 shared leads at 5% comp.

Yet to see what'll happen to internet leads. Come Oct. volume will be down so I guess we'll see how the vendors react.

How do group brokers make it? You tell me. Everyone I know who tried to break into the group market is working at Home Depot.

 

[bluemarlin08]

Very difficult to break into the group market, but those that I know that have lasted do very well.

 

[YouGotMyMoney]

Maybe everyone is going to get sold STM.

Tough nuggets-

 

[Lyn]

Learn to cross sell. Most of the folks you talk with don't have competitive term rates, most don't have individual disability and most of their parents don't have LTC. Servicing their health insurance needs, for me, is a great way to transition to other products.

Won't life be a difficult sell when someone learns they can't afford health insurance? Or are we thinking that if they can't afford health insurance it becomes even more important to quickly get them into a life product?

 

[somarco]

Agents are not the first, or only victims. This is from a blogpost I did this week.

If Obamacare is so greath, then why are there so many health insurance companies retreating from the market, leaving consumers with fewer choices and higher premiums? Since March when Obamacrap was signed in to law we have seen the following changes in the Georgia health insurance market. (Other states have had similar issues, but I am only familiar with Georgia health insurance plans).


All but two health insurance companies have withdrawn from offering maternity benefits.


Only a handful of companies will still write "child only" health insurance plans.


As of this date, it is almost impossible to find a rate for children's health insurance if they are under age 19 and you are looking for coverage to be effective on 9/23/10 or later.


Some companies have either withdrawn from offering major medical business or are dropping hints they will be out of that market in 18 months or less.


Many have already indicated higher premiums for the 4th quarter of 2010 and later, especially on children under age 19.


Companies are starting to push limited benefit plans as "more affordable" alternatives to true major medical insurance.


Several companies have introduced new plans with stripped down benefits in an attempt to make their product look more appealing.


Drug formulary's are changing, so the drug that is covered under your plan now may not be covered in the future.


Doctor and hospital networks are shrinking in an effort to further control costs but also has the effect of limiting access to a wide range of medical providers.


Given all this, why is Obamacare so great for the consumer?


What happened to , "If you like the plan you have now you can keep it"?

 

[harbinger]

Lots of insurers are starting to fire home office folks in order to get ready for the minimum LR rules. More unemployed victims.

 

[HealthGuy]

And the drumbeat of Obamacrap rolls on, while the public just accepts this idiocy. Why do we have to accept this as reality? I guess elections have consequences, especially this one. Obama is into fundamental change, not simple change. Can you say Obamacrap = Eurocrap?

 

[Crabcake Johnny]

If you think people in the health insurance industry have been laid off now, just wait until January. From HO to agencies to agents this will affect (my guess) more than a million people. Next round of elections will be a day late and a dollar short.

I have no idea who's idea it was to make MLR's effective 3 years before the exchanges but I have a few choice words for them.

We, however, are lucky. We hold a license and can sell all life and health products. We may have to work harder but we have work. Feel sorry for some home office employee who just got the boot with zero prospects in the job market.