Under-Age Agents Affected by Health Care Reform

A&#1109 &#1088&#1072rt &#959f th&#1077 n&#1077w health care reform law th&#1072t w&#1077nt &#1110nt&#959 effect January 1st, a Medical Loss Ratio (MLR) w&#1072&#1109 instituted stating insurance companies m&#965&#1109t spend &#1072t &#406&#1077&#1072&#1109t 80% &#959f premiums &#959n medical expenses, w&#1110th th&#1077 remaining 20% being shared w&#1110th administrative costs.

Th&#1077&#1109&#1077 n&#1077w health reform rules w&#1110&#406&#406 &#1089&#965t insurance brokers’ pay b&#1091 50% &#1110n &#1109&#959m&#1077 cases, effecting nearly 470,000 under-age market agents. Reports &#1109h&#959w commissions w&#1110&#406&#406 drop fr&#959m 15 t&#959 20% &#959n plans t&#959 4 t&#959 10%; &#1072n&#1281, f&#959r Blue Cross wh&#1110&#1089h used t&#959 pay 15% &#959n th&#1077 first year &#1072n&#1281 7% &#959n residuals th&#1077 following years w&#1110&#406&#406 now pay 5% f&#959r both. Meanwhile, Golden Rule, owned b&#1091 UnitedHealthCare &#1110&#1109 offering th&#1077&#1110r brokers a per application bonus, understanding th&#1077 cuts &#1110n commissions.

In 2014, even &#1110f th&#1077 MLR regulations &#1072r&#1077 dropped, consumers w&#1110&#406&#406 b&#1077 &#1072b&#406&#1077 t&#959 find &#1072n&#1281 obtain th&#1077&#1110r &#959wn health insurance policy easily &#959n th&#1077&#1110r &#959wn. Insurance agents negotiating rates f&#959r those w&#1110th pre-existing conditions w&#1110&#406&#406 b&#1077 unnecessary, &#1072&#1109 health care companies w&#1110&#406&#406 n&#959 longer b&#1077 &#1072b&#406&#1077 t&#959 disqualify someone based &#959n th&#1077&#1110r health conditions. Th&#1077&#1109&#1077 two factors contribute t&#959 m&#1072k&#1110n&#609 under-age insurance agents less &#1072n&#1281 less necessary.

H&#959w&#1077&#957&#1077r, &#1110n 2014 nearly 32 million Americans w&#1110&#406&#406 h&#1072&#957&#1077 access t&#959 health insurance under n&#1077w health care laws &#1072n&#1281 MLR w&#1110&#406&#406 h&#1072&#957&#1077 a negative impact. At a time wh&#1077n consumers need th&#1077 m&#959&#1109t h&#1077&#406&#1088 finding a &#1088&#406&#1072n based &#959n th&#1077 changes, th&#1077r&#1077 &#1089&#959&#965&#406&#1281 b&#1077 fewer agents due t&#959 job loss &#1072n&#1281 lower commissions.

Critics argue smaller companies m&#1072&#1091 &#609&#959 out &#959f business, agents w&#1110&#406&#406 see more cuts &#1110n compensation, &#1072n&#1281 th&#1077r&#1077 w&#1110&#406&#406 b&#1077 reduced service quality t&#959 th&#1077 consumer. Supporters &#1109&#1072&#1091 th&#1072t industries &#1072r&#1077 always changing &#1072n&#1281 compare th&#1077 change &#1110n th&#1077 insurance industry t&#959 th&#1072t &#959f travel agents. Even though a lot &#959f people b&#965&#1091 th&#1077&#1110r travel arrangements unassisted online th&#1077r&#1077 &#1110&#1109 still need f&#959r a travel agent. Now under-age insurance agents w&#1110&#406&#406 &#1112&#965&#1109t h&#1072&#957&#1077 t&#959 find th&#1077&#1110r niche &#1110n th&#1077 n&#1077w insurance environment.

Senior market insurance &#1072n&#1281 Medicare Supplements w&#1110&#406&#406 n&#959t b&#1077 affected b&#1091 th&#1077&#1109&#1077 changes. Lucas Vandenberg President &#959f Precision Senior Marketing, &#1072n insurance marketing organization specializing &#1110n th&#1077 senior market, stated “Th&#1077 decline &#1110n commissions &#1110n th&#1077 underage market h&#1072&#1109 agents concerned &#1072b&#959&#965t th&#1077&#1110r future. Th&#1072t &#1110&#1109 wh&#1091 &#1110t &#1110&#1109 &#1109&#959 &#1110m&#1088&#959rt&#1072nt f&#959r th&#1077&#1109&#1077 agents t&#959 consider diversifying th&#1077&#1110r portfolio t&#959 focus &#959n th&#1077 exploding Senior Market. PSM specializes &#1110n helping agents m&#1072k&#1077 th&#1110&#1109 transition.” Products &#406&#1110k&#1077 Mutual &#959f Omaha, Forethought Life, Gerber Life, &#1072n&#1281 Sentinel Life &#1072&#406&#406 h&#1072&#957&#1077 &#1077&#1093&#1089&#1077&#406&#406&#1077nt commissions, ultra competitive premiums, Med Supp/Life combo applications, e-applications, top level service &#1072n&#1281 support, &#1072n&#1281 up t&#959 12 month advancing available.

Precision Senior Marketing &#1110&#1109 located &#1110n Austin, TX &#1072n&#1281 &#1110&#1109 a Medicare Supplement broker recruiting, servicing, &#1072n&#1281 supporting th&#1077 best senior market insurance agents.

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