Outlook for New Healthcare Insurance Brokers?

Dvdman

Expert
28
I am thinking of a career change at 40. I have been looking all over the board but a lot of post were a couple years old. Is becoming a healthcare broker still have a future? I am not sure if the commissions have changed or if Obama care was a good or bad thing. I would assume most people would still like to talk to a broker who specializes in the market and can help save them money. Thanks!
 
I would think it is almost impossible for a rookie to build a block of health insurance business from scratch and would discourage anyone considering that move.
 
It's OK if you have enough money to float you for 2 - 3 years. Then you have to ask what kind of agent opportunity will be there in 3 years.

Obamacare reduced the number of carriers and plans by 70%.

There is a good chance Blue and maybe 1 or 2 other players will be around by 2016.

Premiums are at least 40% higher than before and in some cases 2x or 3x.

Commissions are 60% less than 2012.

Advances no longer exist to help the new agent finance their way into the business.
 
I know..company tried to get me to work for them at 10% commission and tried telling me that was great money..lol..not my first rodeo and know better..sticking with life:yes::yes::yes::yes::yes:
 
I know..company tried to get me to work for them at 10% commission and tried telling me that was great money..lol..not my first rodeo and know better..sticking with life:yes::yes::yes::yes::yes:

So what is considered good commission these days?? I am going in tomorrow for an interview as a healthcare broker in Illinois. I would be selling all major companies in the industry. I would appreciate any numbers so I can be better prepared. Thanks!
 
I am in Illinois. I can represent Assurant, Aetna, BCBS, Humana, and UnitedHealthCare.
 
Here a couple factors working against new agents coming into the market:

- very short selling periods (annual enrollment period). This year it's Nov 15 thru Feb 15, 2015. The AEP after that is Oct 15 to Dec 7th.

- commissions are often as earned. Making it difficult to get started without some cash saved to help you.

- commission will likely go lower each year. ACA is going to be like Medicare Advantage in a few years. The Government will tell carriers what's the most they can charge, what renewals will be, how you can and cannot market, etc.

For those who have an existing book of business, these changes can be weathered. For those new to the industry, it will be a struggle to only do health insurance. If you had an existing book of business say of home/auto clients, you might have a shot.

This is not saying it's impossible, but it much more difficult than it ever had been before. And it will likely get more difficult. Don't want to rain on your parade, but want to make sure you don't have rose colored glasses on...Good luck on what you decide to do.
R
 
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