Mandated Loss Ratio's = ZERO Commissions

[The Brokerage Resource]

If you think any of the carriers will be able to afford to pay agent commissions on individual health business your smoking street drugs.

The Senate bill requires 80% minimun loss ration on small group and individual plans, this includes plans already on the books. Carriers in that market try to be around 65-70% and in the end they only show 2-3% profits on those blocks of business. The carriers will only be able to survive if thier plans are sold on the exchange with a Acorn worker guiding your clients or on a website like Medicare.gov (a current exchange).

So someone please tell me how they are going to be able to pay commissions and have all of the extra mandates in the plans.

I am happy we stopped marketing underage health plans and only market 65+ plans , but this is just the 1st step in a fundamental change in our business. If you think its going to stop here your crazy.... The next big one is taxing death benefits from life insurance over 250k, because if your about to get 250k then your rich and we all know rich people pay all of the taxes.

 

[HealthGuy]

Ok Brokerage Resource: Maybe we shouldn't market and sell anything: health insurance or life insurnace then. Geezzz. Maybe you are smoking street drugs.

 

[TXINSURANCE]

Depends on the funny math. Remember the only commissions that are 20% or higher are FIRST YEAR. If the average policy is 3 years, the only year they are paying out high is year 1 - the bill I believe specifically does an annual snap shot. If 2/3 of the carriers book is not first year than the math could get complicated.

Haircut yes.

No commissions no.

 

[Justin Bilyj]

For the record, I'm smoking street drugs

 

[Crabcake Johnny]

Agents wil be paid commissions

 

[STIBROKER]

with the new health plan that will be covered with a copay....

For the record, I'm smoking street drugs

 

[The Brokerage Resource]

Agents wil be paid commissions

I hope your right, but have a feeling you may not be.

 

[Dave020]

Kaiser CA and Blue Shield CA both run ratios above 85% consistently, and manage to pay full commissions to agents.

 

[Bitnis]

Agents wil be paid commissions

Nothing is certain these days but whether or not it will be worth the time is very uncertain at this point.

 

[The Brokerage Resource]

Kaiser CA and Blue Shield CA both run ratios above 85% consistently, and manage to pay full commissions to agents.

Those numbers include large group. If you look at only the small group (less than 100) and Individual cases you will see much different numbers.

The Large group Loss Ratio is 85% in the bill, its the small group & individual markets that concern me with respect to commissions.