Friday, July 21, 2017

The Agents' Problems With Health #Insurance

As we all know, health insurance changed dramatically in this country several years ago with the ACA or Obamacare rules.  Instead of individual policies with various deductibles, companies were forced to offer policies with "essential health benefits" or ESB's, which meant that all policies had to offer certain coverages.  This, as well as forcing carriers to cover people with pre-existing conditions, drove rates through the roof.

But how did it all affect your health insurance agent?  

First, the law mandated that 70% of premiums had to go toward claims.  This left 30% to go toward administrative costs, overhead, salaries and, yes, commissions.  Those commissions shriveled up like a Sunsweet raisin.  I don't sell based on commission only, however, this is my job, not a hobby.  I need to make a living as well.  Obamacare created several new outlets for people to get their coverage, including a website, an 800 number and navigators, which are non-insurance licensed enrollers.  People don't need an agent.

Secondly, we have a short window of time, the open enrollment period, to enroll you.  Outside of that time period, we can enroll if you have a special situation, ie you lost coverage through your job or you got married.  But the companies have decided NOT to pay commissions on those sales.  Again, it's not a hobby.

Finally, the agents we talk to are generally disgusted with the whole process and don't want to keep investing their time and energy getting certified each year while not knowing if our politicians are going to repeal, replace, tweak, fund or defund the system.  

With all of this in mind, we at Surf Financial Brokers have made the decision to stop offering health insurance until conditions get much better.  However, we are taking the time to make sure we offer the best options when it comes to Medicare Supplements, life insurance and group benefits (minus health) for our clients.  

Please let us know if we can assist you!

No comments:

Post a Comment