Health Insurance Brokers May Ask Congress to Protect Commissions

November 22, 2010

  • November 22, 2010 at 6:22 am
    ComradeAnon says:
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    Look at the socialist brokers running to the gubmint. Let the private markets take care of this.

  • November 23, 2010 at 1:07 am
    EWR says:
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    The market WILL take care of the agents by driving us out of the business if MRL has to include commissions. It’s not a question of ‘making a buck’ but a question of being paid a fair wage for the work we do. Health insurance agents don’t make much commission as it is for all the work we do, but the companies are stating that they are going to cut commissions by 75%, 85% or even require us to work for free because they will offer products that don’t have commission built into the price. Well I have bills to pay and a family to take care of just as much as anyone and I can’t afford to work for free. If MRL isn’t fixed and if commissions are indeed cut, it won’t be just me that is out of a job, it will be ALL health insurance agents, which in turn will SCREW the public. They won’t know the choices they have and they won’t have one clue about what they are buying since there will be no unbiased and independent agents to guide them through the health insurance maze.

  • November 23, 2010 at 1:18 am
    Sarah says:
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    The health agents are generally a bunch of guys only interested in high commissions. These are the guys who give insurance agents a bad name. They will only sell life insurance as long as it pays 100% commissions.

  • November 23, 2010 at 1:19 am
    Agent says:
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    I’m sure glad I am not depending on Group and Individual Health commissions for my livlihood. Some agents are heavily into it and stand to lose the most on Obamacare kicking in. We have already seen the cut in commissions on Individual and Group never paid much to start with. This whole thing will degenerate into an online submission and no one will know what they are buying and the government bureaucrats will be in charge like Obama intended it.

  • November 23, 2010 at 1:32 am
    Yvonne says:
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    Sarah, I don’t know what agents you are talking about – but our agency ALWAYS looks to do to what is in the best interest of the client regardless of how much commission we are making. Just as EWR stated, we also have our own families to feed, as well as those of our employees. With the cut in commissions (which has steadily been declining anyhow) we will have no choice but to downsize our agency!!! It’s a dominoe effect which will continue to slow the economic recovery, as I’m sure our agency is not alone. But hey…what does the country care about so long as we get “affordable health care”…right?? We’ll see how affordable it will be in 2014 when everyone will be eligible to enroll and the cost of private insurance will skyrocket (which it already is) and people will be forced into government purchasing pools and brokers will not be paid to help or offer consultations…

  • November 23, 2010 at 1:55 am
    Agent says:
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    The answer for the agent is to diversify and sell mostly P&C and not depend on Health Insurance to make a living because it may not be there in a couple of years if Obama has his way. Designating $.85 of every dollar for health care doesn’t leave much for commission and company profit. The agent will do all the work for a pittance. Most will leave and let the government have it and they and the big players like Aetna, United, Wellpoint will will be shills of the government and create online applications and no one will be able to figure out what they have or receive sound advice on the coverage. Kind of like GEICO Auto Insurance done by an order taker.

  • November 23, 2010 at 2:12 am
    P&C Guy says:
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    Sounds like the L&H agents that want to stay involved need to start moving to a fee model…

  • November 23, 2010 at 2:53 am
    Agent says:
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    Who is going to pay the fee, Obama? What would the charge be for this? The customer is already getting raped on the premiums and doesn’t want to pay an extra fee. This will go to an online application direct between the customer and company/exchange so they don’t have to pay a fee or commission on it.

  • November 23, 2010 at 2:56 am
    WOW! says:
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    Capilatist pig: WOW!! I did not think there were any of you still around. Guess I misread the election results!

  • November 23, 2010 at 3:27 am
    Agent says:
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    I am quite sure that Capitalist Pig does not sell Health Insurance or he would be very upset at what is going on. He is all for the intrusive government take over of all things and I am sure he is not for Captialism in any form.

  • November 23, 2010 at 3:41 am
    Capitalist pig says:
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    Oh, but you misread my comments. I am FOR commissions for L&H producers. In fact, I am one.

    I am against the government cutting us out, but I am also against allowing the market to solve this. Once the government gets into something, normal markets forces become skewed (and we all get SCREWED!).

    I also don’t thin health insurance companies value us or appreciate what we do for them.

  • November 23, 2010 at 3:58 am
    suffering agent says:
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    I think we’re all screwed on L & H. unless there are some changes made to the health care bill, we will be out of the health sales business in 2014.

  • November 23, 2010 at 4:03 am
    Tom says:
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    Eveyone seems to miss the most salient point. The GOVERNMENT has politicized the insurance and healthcare industries pitting each one’s interests against everyone else. The GOVERNMENT should have no role in the private sector insurance market, period. Squabbling amongst ourselves only serves to distarct from the most critical fact.

  • November 23, 2010 at 4:15 am
    Agent says:
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    The law of unintended consequences has hit home big time with Health Care. These politicians rammed it down our throat with no thought of how it will affect the buying public or agents who have to sell and administer it. The companies are in bed with these Progressive politicians as well, ie Aetna CEO saying they didn’t want Obamacare repealed. Whose ox is getting gored here? I think Obama gored us all and we are bleeding profusely. The new Congress had better put a bandage on this or we are not for long.

  • November 23, 2010 at 6:46 am
    capilatist pig says:
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    Sure ComradeAnon. Let the marketplace take care of agents’ commissions … and no one will be available to sell any of these products. When there is no financial incentive, sales people will drop out of the picture and go somewhere else where they can make a buck. Everyone will be buying like people buy auto insurance from GEICO. Agents and brokers will go somewhere else and we’ll have an even bigger mess. Then, when the government realizes that the holy market will have screwed the public (with bloated salaries for health insurance companies), the government will claim it has that much more reason to step in and socialize medicine.

    Hey, wasn’t it the “market” for banking and investment that got us all into the trouble we’re in now?

    Unregulated markets are NOT the answer to every financial problem, despite what neanderthal conservatives say.

  • November 24, 2010 at 8:48 am
    Sheltowee says:
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    Some commission is better then no commission. And the idea behind broker commmissions should be more insureds with lower commissions is equal to lower insured policies and higher commissions.

    Right now most agents don’t sell much individual health insurance. There are a hand full of brokers in comparion to all the licensed life and health agents that sell to a few groups and make huge commissions.

    Let them work for it. For a change.

  • November 24, 2010 at 9:33 am
    Rusty says:
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    Regardless of what the respondents think about agents and their commissions, the larger picture here is that the government is just starting to dabble in every aspect of the health field as we knew it would do once the bill got passed. It starts with mandating practices, based on theory of how they want things to be, that totally ignore enconomic and practical realities. There is no doubt that the feds always wanted to take over health insurance and health care practices with a governmental, single payer system, but since it could not be done upfront, the backdoor method is the means by which it will happen. The first step is forcing regulations on everyone involved so as to make it unprofitable impractical to stay in business. Once they have decimated both the current healthcare and health insurance shystems, the feds will step in to “save” everyone from the “greedy” insurers, doctors, hospitals and pharmaceutical companies. Then they’ll manage the healthcare system about the same way they are now managing the terrorist threat at airports and because of their inability to rout corruption, greed, fraud and overcharging from their contracts and programs, while adding more and more governmental employees to their staffs, they’ll end up spending more on healthcare than is currently being spent nationally, while still making a select group of health contractors very rich. They’ll make no excuses for that nor even attempt to drive out any of those costs but simply add it all to our national debt (which hides the true cost) and tax bills, pointing to the need to provide all of us “quality” healthcare while folks wait in line for months to see a doctor or die before they can get a critical operation. That’s the real “vision” of this administration.

  • November 24, 2010 at 9:49 am
    Agent says:
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    If the companies have been mandated to spend $.85 of every premium dollar on Healthcare cost, how much do you think is left over to pay commissions to producers and pay their overhead expenses and profit? They will squeeze the commission down to a pittance which is too low for any producer to continue selling the product.

  • November 24, 2010 at 10:38 am
    Realist says:
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    Let’s face it. One of the big reasons the government took steps to get involved in health care was because the system wasn’t protecting everyone. many folks weer being told by their health insurance companies that various treatments were not covered. The reasons given were flimsy, as in “experimental” or “not proven,” but people wanted them.

    Pre-existing condition exclusions were also hurting a lot of folks. The US government likes to respond to loud cries, so they passed Obamacare. Don’t think for a minute that the new Repulican majority is going to overturn it either. The Republican’s received a lot of support from health insurers who love this law. And health insurers don’t mind squeezing agents & brokers because they don’t like to pay commissions and would rather see everyone buy direct or on-line. We’ll soon have health care sold like GEICO auto.

  • November 24, 2010 at 11:22 am
    Agent says:
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    I respectfully disagree with you that the Government got into the Healthcare because of the outcry of the citizens, abuses of the companies, etc. Healthcare has been on the Progressive Agenda for 100 years. Teddy Roosevelt, Woodrow Wilson, FDR, Slick Willy all saw it as a vehicle to exercise control over the population as part of their agenda. Our current President got it after getting control of Congress with all his Progressive buddies and passed it over the will of the people and massive protests. The chief reason why there was a big turnover in the House was Obamacare. I do agree the Republicans will have a tough time repealing it before 12 because of the veto. They can chip away at it and remove as much bad policy as possible until then.

  • November 24, 2010 at 12:08 pm
    Realist says:
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    I don’t mean to get into a pi**ing contest with you about the reason Obamacare was passed. However, I do feel strongly that the Republicans will just make a lot of noise, but since so much of their support comes from the insurqnce industry and from big pharma, nothing will be accomplished. They will make a lot of noise, and then when nothing is changed, they will act as though they wanted change, but behind the scenes will be winking at their big money supporters.

    The ones who will pay the most in the end are those will sell health insurance (as a matter of transparency, I do sell some – it is perhaps 2% of my income), those who end up paying a lot more for their coverage like small groups (I am definitely one of those), and many health care providers.

    And I do think that our government, bot sides of the aisle, thinks that socialized medicine is going to be here eventually. Hopefully later not sooner though.

  • November 24, 2010 at 12:30 pm
    Agent says:
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    I wouldn’t be so quick to blame only the Republicans for being in bed with Big Health and Big Pharma. Both parties have been lobbied hard to get them on board. Do you think the meetings at the White House with Big Health & Big Pharma was just to take a tour? Why would the Aetna CEO come out with a statement that Obamacare should not be repealed? It would have been interesting to be a fly on the wall during one of these meetings. I am sure the Chosen One promised them the moon if they signed on. They can be the shills of the government and will be heavily subsidized to administer this monstrocity. I think it will basically be a dog and pony show and only a few little chips made in it like the 1099 requirement on business may come out at least until 12. That is when the substantial part of this bill will be scrapped.

  • November 29, 2010 at 11:29 am
    Inlitend1 says:
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    So, HHS says they want us to stop providing assitance to clients who have claims issues since we cna’t be compensated for such help? They really do not have a clue and at some point the public is going to catch-on.

  • November 29, 2010 at 11:44 am
    Tom says:
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    Need any further proof that health care is now “politcal care” whose entree was “insurance industry” control.

    Government causing housing and then helping us by controlling the mortgage industry based on a crisis it helped create.

    Government now “regulating” insurance

    Can food, clothing and income be far behind? George Orwell-are you there????

  • November 29, 2010 at 3:15 am
    Agent says:
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    The goal of this administration from the start was to destroy the Healthcare System as we know it. They want the single payor government bureaucracy so they can control our lives. Agents do not fit their model and the commissions we earn for advising clients and helping them with their buying decisions don’t count for much. Those that think Obamacare will be good for the Group and Individual clients are seriously misguided.

  • November 30, 2010 at 5:16 am
    Tiresis says:
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    To all complaining about the commission issue….I guess now you can begin to relate to the steelworker, the textile worker, the shoe industry worker, and many segments of the blue collar manufacturing sector that saw their jobs leave this country as part of government “open trade.”

    Things change; you are on the downside of the change. Get over it.

    And to those that are gloating over the elction results, I wouldn’t gloat so far and so loud; almost half of the population supports the health bill according to many legitimate polls tha I have read. The GOP…as usual…scared the senior seniors into thinking they were going to be put on an ice floe to die and so lucked out, but there is more to the story. Hubris has brought down many, many would be heroes, and I see the seeds in many of these posts. Remeber, there is a large potential pool of voters that did not vote in mid term elections…Remember what happened when they did….

  • December 1, 2010 at 7:55 am
    Tom says:
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    Tireisis, the blind prophet, how accurate is that. You appartenlty have vision in only your left eye, which only makes your predicition half right only half the time. For all the “industrial” jobs that went out, there were other jobs that were developed and now, some industrial jobs are coming back as onshoring is taking place. Please also remember that foreign car companies loaded up the south with plants.

    You are a modern day luddite, hoping that elevator operators, toll booth attendants, fuel service gas attendants should come back. Every job ever created should remain intact and there should be no fluidity to the economy or progress (strange position for a “progressive”).

    Your comparison also fails when comparing the loss of private sector jobs to what the government is doing to the healthcare industry, other than the fact that the gov played a large role in moving those jobs overseas with it tax policies.

    I don’t get the delight you seem to have in castigating those of us in the insurance industry for objecting to a scheme to kill off those that make a decent and honest living from serving their customers.

    You sir, are no prophet. Your correct and true moniker should be Moros.

    As for 2012, I wouldn’t be so sure that your Organizer in Chief and his minnions will fare any better. This OIC can’t make a decision without deferring to a committee. Exhibit A-the pending tax increases which are being held hostage to a demand that 98% of the population suffer while he attempts to punish the rich 2%. This kind of wrongheaded thinking is what will destroy your vision of the future.

  • December 1, 2010 at 9:03 am
    Agent says:
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    Well said Tom. Poor Tireisis obviously takes his cues from Mediamatters or Moveon.org. All of the bad policy that has been done in the past 4 years has been initiated by Progressive liberals of both parties primarily under the leadership of her highness Nancy Pelosi and Dirty Harry Reid. This loathsome bill will surely kill jobs in the general economy and in our industry because so many professionals will stop selling it due to the commission issue. This will leave many millions of people to fend for themselves and deal with the bureaucracy and the company shills who will be subsidized to do the dirty work. Not a happy prospect unless it is overturned before 14.



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