We Will......survive!

[JohnBroker1]

I agree with Bill. Not only do you need brokers/agents to help with the transition to new policy enrollment and to help with all the changes that will take place until the government has taken over the entire system.

That being said, one thing that hasn't been mentioned is that brokers are relatively inexpensive compared to a government or state worker. Yes, the government wants to create more workers/votes but at this time money keeping costs in check are going to be a high priority.

There is a reason brokers are used by insurance carriers..they are cost effective.

 

[Yagents]

Glad I won't be alone on this sinking ship....

 

[TonyC]

Yep...i hear you Bob. A lot of licenses, and E&O to CYA.

Tony, some (all?) states allow you to charge a fee that is either offset by commissions or in lieu of commissions. Obviously a fee is an add-on and very visible to the client.

Some states, GA being one of them, require a counselor's license.

At one time you could have a counselor's license or an agent's license, but not both. Not sure what the deal is now but I suspect that has been relaxed a bit. I know some life agents that offer to work on a fee basis or commission and let the client choose.

They are usually working high end business or estate planning, or in some cases retirement planning. No kitchen table, mom & pop stuff.

Usually a lot of "image" associated with that kind of practice. A real office, networking with attorney's and accountants for referrals. No in home or over the phone consults. Client comes to their office.

 

[rousemark]

Every time I scroll past this thread, I see the title and it has a negative connotation to me. It is not enough to "survive", you must "thrive" and the forward looking agent that looks for opportunity in change will do just that. They always have and always will.. Medicare si a prime example. When it was first coming into effect, agents and companies fretted that government health insurance was going to put them out of business. Others saw the opportunity, developed and sold products that have made many rich.

 

[somarco]

Louis you are correct about Medicare. ERISA had a similar impact on retirement plans, all but eliminating the defined benefit plan except for public sector and union employees.

Obamacare will eventually, if fully implemented, destroy most of the private health insurance market for individuals, but it will create opportunities for supplemental plans and coverage not even considered at this stage.

 

[Yagents]

And every insurance product created, gov't or private, needs advice from a professional. Advice is the constant.

 

[Ann H]

The exchange has 4 plans. How much of a fee can you charge for pointing that out? The CPAs and other tax experts will be debating the subsidies and how to get them.

The exchange has four CLASSIFICATIONS of plans, and there will be a variety of plan designs within those classifications.

Each class of plan has an actuarial value (Platinum 90%, Gold 80%, Silver 70%, Bronze 60%). Included in each package is a minimum set of benefits that each plan must have. From that point, innovation takes over, and there will be as many products as insurers can come up with to satisfy the market.

For instance one Silver plan may have a $250 deductible and pay 50% co-insurance, with expanded coverage for mental health.

Another Silver plan may have a $3000 deductible and pay 100% co-insurance with large copays and expanded prescription coverage.

Another Silver plan may have a $1000 deductible, 80% co-insurance, and it has your prescription in its formulary whereas the other plans do not.

Yet they are all Silver plans at 70% actuarial value.

Disclaimer - these were just examples. No, I didn't crunch numbers to see if these examples really were 70% actuarial value. It's just meant to show that 70% actuarial value can come from a variety of plan designs.

 

[Yagents]

Once again, Ann wins with best explanation. She spells out why agents will survive. Lots of differentiation still. Imagine medicare Part D online with no Rx matching mechanism. Some plans will have caps of 20-30 therapy visits or less, wouldn't be good for people with new hips.

 

[Dave020]

Ann is exactly right on this. Many variations will be available.

 

[bobson]

The exchange has four CLASSIFICATIONS of plans, and there will be a variety of plan designs within those classifications.

Each class of plan has an actuarial value (Platinum 90%, Gold 80%, Silver 70%, Bronze 60%). Included in each package is a minimum set of benefits that each plan must have. From that point, innovation takes over, and there will be as many products as insurers can come up with to satisfy the market.

For instance one Silver plan may have a $250 deductible and pay 50% co-insurance, with expanded coverage for mental health.

Another Silver plan may have a $3000 deductible and pay 100% co-insurance with large copays and expanded prescription coverage.

Another Silver plan may have a $1000 deductible, 80% co-insurance, and it has your prescription in its formulary whereas the other plans do not.

Yet they are all Silver plans at 70% actuarial value.

Disclaimer - these were just examples. No, I didn't crunch numbers to see if these examples really were 70% actuarial value. It's just meant to show that 70% actuarial value can come from a variety of plan designs.

That's not my understanding but you might be correct. My understanding is the plans must pay 70% of medical costs up to a defined limit then they pay 100%. Mental health has to be covered just as physical health. I'll be curious to see how it turns out.