Resurgence of Health Books of Business

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AgencyEquity
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Resurgence of Health Books of Business

Post by AgencyEquity »

The ACA has put Health Insurance Agencies and Books of Business in limbo for a number of years, however this I truly believe both these type of accounts and agencies on the the verge of coming back if they have not already done so. Here are things to note:

1. Individual Plans are very easy to write because of the guaranteed issue, so even if any agency is getting less commission, they are spending a lot less time on managing the underwriting process.

2. Group plans are generally paying the same, perhaps a little lower, but they premiums are up.

3. The Government is finally realizing the distribution of healthcare is no cake walk. Reality is, their costs are so much higher than what it cost through the broker distribution channels. The Federal Government and most states are in deep debt, they cannot sustain these programs in a big way over the long run.

4. Because of the debt and because of the government mismanagement of the exchanges, it unlikely we will see any kind of universal and government run healthcare soon.

5. The ACA has many flaws and this will need to be addressed. It's very possible that broker commissions will be taken up again, however as mentioned in pointer #1, it's very easy to place this business and does not require the time it used to take.

6. For Agencies who like seasonal business, they will only need to work from about November to March on Health Insurance, allowing for more leisure time during the off-season.

7. Technology has made it easier than ever, applicants can apply on your website online or in your office without you agency touching any paper, scanning, mailing or making copies.
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