Allstate Cutting Med Supps Commissions Effective 6/1/25

[Special Agent]

I don't write Allstate . . . what are they currently paying?

FWIW, if a carrier wants to remain competitive in the market they can keep rates in line and cut commission, or keep commissions and go for higher rates and lose market share.

While most MA plans don't charge a premium they still have ways to limit their risk by increasing OOP costs for folks who use their plan. Only a fool would say MA plans don't get more expensive because they aren't charging a premium.

Over the last 10-15 years in the good MA markets like Florida the benefits have been getting better except for 2025.Yes the MOOP does increase each year but it is not an issue in florida since the average moop is lower than the cms mandated moop. Only a fool doesn't understand their market!

 

[goillini52]

I have them, but have never used them. Now there's no chance. Hello trash can.

 

[somarco]

My guess is their reinsurance carrier suggested taking action in hopes of improving the loss ratio.

Almost every carrier has experienced "spillover losses" from COVID. This includes MA and Medigap. Each carrier has done something different. New Era stopped writing G plans a few months ago.

Some of the larger carriers have done a better job of absorbing the losses.

This will probably continue to play out through 2025 and possibly into 2026.

 

[maxherr]

. . . they want this to be a temporary adjustment for a year or so...

Famous last words. Ever see a US Government entitlement program go away? Ever see "temporary adjustments" by insurance companies that didn't become permanent? Will Congress ever raise FICA/SECA contribution percentages to the actual amounts needed to "strengthen Social Security" like every president in the past 30 years has pledged to do? Of course not is the answer to all three questions.

Commissions are easy to cut or eliminate, and are the first to go. In the 1990s, individual/family plan health insurance paid 20% or more, today it's barely 2-3% as premiums are 300-500% higher than those in 1995. Anyone remember Obama telling America, "Your health insurance premiums will go down by 25%"?? I didn't believe that BS then either.

 

[GoPokes]

Famous last words. Ever see a US Government entitlement program go away? Ever see "temporary adjustments" by insurance companies that didn't become permanent? Will Congress ever raise FICA/SECA contribution percentages to the actual amounts needed to "strengthen Social Security" like every president in the past 30 years has pledged to do? Of course not is the answer to all three questions.

Commissions are easy to cut or eliminate, and are the first to go. In the 1990s, individual/family plan health insurance paid 20% or more, today it's barely 2-3% as premiums are 300-500% higher than those in 1995. Anyone remember Obama telling America, "Your health insurance premiums will go down by 25%"?? I didn't believe that BS then either.

Yup.

Waiting on other people to solve our problems, is the problem.

 

[MedicareWAA]

Commissions are easy to cut or eliminate, and are the first to go. In the 1990s, individual/family plan health insurance paid 20% or more, today it's barely 2-3% as premiums are 300-500% higher than those in 1995. Anyone remember Obama telling America, "Your health insurance premiums will go down by 25%"?? I didn't believe that BS then either.

Except Medicare is an enormous, growing, and usually lucrative part of the insurance industry underwritten by carriers who have no good DTC capabilities at scale. I'm betting that more carriers will still want members three years from now, and they'll get those members from brokers.

 

[somarco]

Household name carriers do just fine without brokers . . . it''s the smaller ones who need someone to drive business to them.

When Obamacare was rolled out most of the carriers cut commissions to the point that a high percentage, perhaps 70% or more, left that market and moved on. It took 3 years or so for the few remaining carriers to want brokers again.

But Obamacare was, and still is, complicated.

Not so much with a plan that has no premium and is heavily promoted (by carriers and agents) to focus on the supplemental benefits (dental, vision, etc) and just hit the high points about medical.

I will not be surprised if the number of Medicare carriers continue to withdraw and see commissions drop as well. Two years from now, maybe three. the Medicare market will not be as broker friendly.

 

[GoPokes]

Household name carriers do just fine without brokers . . . it''s the smaller ones who need someone to drive business to them.

When Obamacare was rolled out most of the carriers cut commissions to the point that a high percentage, perhaps 70% or more, left that market and moved on. It took 3 years or so for the few remaining carriers to want brokers again.

But Obamacare was, and still is, complicated.

Not so much with a plan that has no premium and is heavily promoted (by carriers and agents) to focus on the supplemental benefits (dental, vision, etc) and just hit the high points about medical.

I will not be surprised if the number of Medicare carriers continue to withdraw and see commissions drop as well. Two years from now, maybe three. the Medicare market will not be as broker friendly.

The number of eligible medicare people should also start to decline, relative to the baby boomer generation spike. This will leave carriers and agents fighting for a piece of a smaller pie.

 

[rmhaire]

I will not be surprised if the number of Medicare carriers continue to withdraw and see commissions drop as well.

And that's why I took those pole dancing lessons.

Everybody needs a backup plan.

 

[somarco]

decline, relative to the baby boomer generation spike.

Boomers are defined as those born from 1946 to 1964. Strangely enough, people continued having sex after 1964 but birth control was more effective.