Tennessee Bill to Allow Agents to Charge Fees Advances

[Brian Anderson]

From The Tennessean:

Legislation to allow insurance brokers to charge customers a fee in absence of a commission passed a vote on the House floor.

The legislation creates a path for compensation for brokers who help customers find a health insurance plan. Until the fall, brokers received a commission from insurers selling individual plans but drastic changes to the health insurance market eliminated the payments...

...The one-page bill, sponsored by Rep. Ron Travis, R-Dayton, and Sen. Bill Ketron, R-Murfreesboro, reads that brokers may charge fees "where the insurer is not paying commission to the insurance producer, if the fees are based upon a qualified written agreement signed by the party to be charged in advance of the performance of the services under the agreement."

The bill passed with 93 votes in favor and two representatives present but not voting. It's scheduled to be in the Senate Commerce and Labor Committee on March 7....

More in this link:

Health insurance brokers get closer to being able to charge fees

 

[bluemarlin08]

what would be a typical fee? Bet folks are already doing this. I know of one firm that charged fees this past OEP, 200/300.

 

[Brian Anderson]

One guy quoted in the article said he "planned to charge customers $85 in lieu of receiving a commission from Aetna, BlueCross BlueShield of Tennessee, Cigna or Humana."

Seems on low side to be sure, but that was before this proposed legislation. Article didn't specify how much they would be able to charge.

 

[dgoldenz]

lol @ $85. $200 individual/$400 family IMO.

 

[VolAgent]

Going to be hard to charge fees if there are no plans.

Most counties in TN only have one company on exchange, BCBS of TN. 18 counties in East Tennessee have NO plans on the exchange.

 

[Cenla Agent]

The Louisiana DOI has banned this practice and is allowing agents a limited time to refund any fees paid by clients for ACA consultations. The agent must also report this to the DOI. (See attached.) Litigation attempting to block this was dismissed.

I don't know whether or not there is anything pending in the legislature that would overturn this. I don't know whether or not the Democratic governor would sign it. (The insurance commissioner is a Republican FWIW.)

EDIT: One difference is that here BCBSLA pays a whopping $25 commission per enrollment instead of the $0 that TN agents are getting.

 

[vic120]

Going to be hard to charge fees if there are no plans.

Most counties in TN only have one company on exchange, BCBS of TN. 18 counties in East Tennessee have NO plans on the exchange.

BC was good for me last year, this year only available for me was Humana with big deductable

 

[Yagents]

Shame on those agents for devising a plan to get fairly paid for services performed, and then be told 3 days before open enrollment that their income model is now illegal. Wonder how many never got that email?