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Reply to Individual Health Application Fee     
Old 12-05-2015, 10:24 AM   #1
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saintstigers on Individual Health Application Fee
 
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Individual Health Application Fee Individual Health Application Fee
Yesterday I started charging clients a fee for enrolling them in an individual health plan. (the commissions dropping, and the application process is taking longer, need to repay WBE fees, etc.)

If a client or prospect calls and wants me to research/enroll them into an indy health plan I let them know upfront that there is a health insurance consultation/enrollment fee of $25/individual and $40 for couple or family that must be paid before I search and enroll. If asked why, I let them know that the insurance companies are not paying us enough to enroll people.

It's not much of a fee, but it keeps those that are just researching and have no intention to buy (just getting a quote) away so they won't wastemy time.

So far 8 have paid the fee (which I invoice by paypal) and 3 have said no thanks.

You think the fee is reasonable? Too low, too high? Maybe I should charge more for a UHC enrollment.
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Old 12-05-2015, 11:10 AM   #2
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State: WiscBroker is an Insurance Agent from
Individual Health Application Fee Re: Individual Health Application Fee
Definitely something to consider when insurance companies pay 0%. However, each state has different regulations on this, so do your due diligence before proceeding. You may need a separate consultant's license and there may be a requirement for disclosure of compensation.
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Old 12-05-2015, 11:16 AM   #3
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Individual Health Application Fee Re: Individual Health Application Fee
Not wise your losing business plus referrals. Just about all the people I research for are clients or become clients. If your researching for a lot of people and they don't do business with you, you might want to examine your sales process.
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Old 12-05-2015, 01:04 PM   #4
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saintstigers on Individual Health Application Fee
 
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Individual Health Application Fee Re: Individual Health Application Fee saintstigers is the thread starter for: Individual Health Application Fee

Originally Posted by SamIam View Post
Not wise your losing business plus referrals. Just about all the people I research for are clients or become clients. If your researching for a lot of people and they don't do business with you, you might want to examine your sales process.
Why would I be losing business to referrals. Most don't seem to mind paying the nominal fee to get help, they see the value that an agent can bring to the table, otherwise they'd just call hc.gov or do it on their own.

For current clients I'm not charging a fee. Only new callers.
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Old 12-05-2015, 01:19 PM   #5
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Individual Health Application Fee Re: Individual Health Application Fee
My point is if you are quoting people and doing research and they don't do business with you then their is something wrong with your sales process. It very rarely happens when I do that and they don't do business with me. Their are times when I couldn't help them but they still either sent me business or later on they called me for something else.

That's just my take.
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Old 12-05-2015, 04:57 PM   #6
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State: Kenny@ACAExpress is an Insurance Agent from Texas
Individual Health Application Fee Re: Individual Health Application Fee
IF you are selling ACA plans it is a specific and direct violation to charge a fee direct to the consumer for enrolling them.. part of the certification...
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Old 12-05-2015, 06:05 PM   #7
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saintstigers on Individual Health Application Fee
 
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Individual Health Application Fee saintstigers is the thread starter for: Individual Health Application Fee

Originally Posted by [email protected] View Post
IF you are selling ACA plans it is a specific and direct violation to charge a fee direct to the consumer for enrolling them.. part of the certification...
I've never read that but I'll take your word on it. What if it's not an enrollment fee but a consult fee? Since agents are able to give a recommendation.
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Last edited by saintstigers; 12-05-2015 at 08:30 PM.
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Old 12-05-2015, 07:11 PM   #8
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Individual Health Application Fee Re: Individual Health Application Fee
Originally Posted by [email protected] View Post
IF you are selling ACA plans it is a specific and direct violation to charge a fee direct to the consumer for enrolling them.. part of the certification...
I don't know if I've seen that in writing anywhere. If so, it's a wet blanket and may override any state laws. If at state level, then plenty of states allow you to charge a fee. (instead of a commission)

If you are charging a fee, you may end of having fiduciary responsibility for plan selection and tax credits.

I hope the gov't changes this rule if true, but it probably won't happen within a year unless enough of a ground swell occurs.

All of us must put pressure on everyone (carrier/gov't), same for clients.

Agents matter.
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Old 12-05-2015, 08:31 PM   #9
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saintstigers on Individual Health Application Fee
 
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Individual Health Application Fee saintstigers is the thread starter for: Individual Health Application Fee

Originally Posted by Yagents View Post
I don't know if I've seen that in writing anywhere. If so, it's a wet blanket and may override any state laws. If at state level, then plenty of states allow you to charge a fee. (instead of a commission) If you are charging a fee, you may end of having fiduciary responsibility for plan selection and tax credits. I hope the gov't changes this rule if true, but it probably won't happen within a year unless enough of a ground swell occurs. All of us must put pressure on everyone (carrier/gov't), same for clients. Agents matter.
#agentlivesmatter
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Old 12-05-2015, 09:35 PM   #10
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State: TxOnline is an Insurance Agent from Texas
Individual Health Application Fee Re: Individual Health Application Fee
I may be picking up some of your prospective clients, Saints...if you sell in Texas.
I've had people ask me, specifically, TODAY, if I charge an enrollment fee.
Up front, they tell me that IF I do, they don't want to do business with me.
If I don't charge a fee, they wanna hear my recommendation for them.
I've never charged a fee & won't.
But, I do understand your dilemma. You've gotta feed your family.

The big execs will get their million-dollar bonuses at your expense.
The customer service reps will get their 2016 raises.
The "valued agents" have provided well for THEM...and their families.
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