I was looking through the insurance agents forum today and read a great thread started by Joe Stevens, (TXINSURANCE) about how the new bill might affect health insurance agents in a positive way. He made some really good points. It all comes down to this: people are going to be required to get health insurance. Low income clients are going to be able to have their plans subsidized. No exclusions for pre existing conditions. here is some of what Joe Wrote:
“Items that COULD be good for agents…
1. GUARANTEED ISSUE W/ MANDATE
This has never been attempted before and would GREATLY expand the market place either way you slice or dice it the market will grow faster than ever imaginable. It is hard to compare NY / NJ / ME GI to a national GI w/ mandate offset, as it has never been attempted.2. NO GOVERNMENT PLAN OR MEDICARE EXPANSION
This bill is literally almost all 100% private insurance3. GOVERNMENT SUBSIDIES TO BUY PRIVATE PLANS
All of the sudden big brother is going to help you sell more policies by picking up a portion of the tab.4. EXCHANGE STATE RAN, NOT FEDERAL (Senate Bill)
There will be significant variation state by state and these website(s) could be CLUNKY , CONFUSING, and clients might need assistance (Imagine that!)5. AGENTS EXPLICITLY NOT ELIMINATED
Bill specifically states preservation of agents roll6. NO PRE EX WAITING PERIODS
Buy today, use tomorrow. Hey if the commission is the same… so what!7. LOWER COMMISSIONS? MAYBE OFFSET BY HIGHER PREMIUMS?
Half the commissions and double the premium is a wash. Who knows.8. SUBSIDIES NOT AT LOWER % OF POVERTY LEVEL
The family of four making $88,000 is no longer subsidized it is VERY low level of % of poverty level on last senate bill.9. CHILDREN GUARANTEED ISSUE IMMEDIATE
Is this really a bad thing? If rates are sellable and policy is commissionable – everyone wins.10. THINS THE HEARD
Lower commissions means VOLUME game. Small time agents go and sell something else. Lead pricing drops like a lead balloon. No one is ran away for farting in the last 5 years as a pre existing condition. Pregnancy is no longer a bad word.”
So what does that mean to you as a health insurance agent? Nobody knows quite yet. Are you going to be able to find more customers quickly? Are you going to be able to generate your own health insurance leads? Is everybody going to be buying through internet portals instead of agents? Are the insurance companies going to be paying lower comissions?
It is still all up in the air, but like in any situation, it all depends on what you do with what you already have. If you can market your policies successfully in your market, be somene who your clients can trust, and get referral biz, you should do well no matter what happens.
You can read the full thread here:
http://www.insurance-forums.net/forum/bill-good-agents-thread17097.html
Hit me up with your comment below.
-Mac
