How Has Your Health Business Changed Since the ACA Has Been Implemented?
- Thread starter LifeWorth
- Start date
I'm not going to go there on "what I think of ACA". That's a political question.
Business wise....its been fabulous. I've owned my agency for 12 years. I used to tell multiple people every week to stay on COBRA or go without coverage. Due to a heart surgery that happened 50 years ago. (Not kidding). Now I can help almost everyone who calls.
All of us in the indy/small group market had to make a decision in March 2010 (or after the Supreme Court decision) on what to do. Stay or go. Most people left. Those of us who stayed and committed to the industry and constant education and the willingness to pivot on a dime have prospered.
Those who continued to "dabble" in the market have suffered and so have their clients. This law is incredibly complex. It changes daily. You can't dabble. Either go all in or walk away.
Other people have figured this out. Last year there were 60K agents who registered with the FFM. Now there are 43K.
Business wise....its been fabulous. I've owned my agency for 12 years. I used to tell multiple people every week to stay on COBRA or go without coverage. Due to a heart surgery that happened 50 years ago. (Not kidding). Now I can help almost everyone who calls.
All of us in the indy/small group market had to make a decision in March 2010 (or after the Supreme Court decision) on what to do. Stay or go. Most people left. Those of us who stayed and committed to the industry and constant education and the willingness to pivot on a dime have prospered.
Those who continued to "dabble" in the market have suffered and so have their clients. This law is incredibly complex. It changes daily. You can't dabble. Either go all in or walk away.
Other people have figured this out. Last year there were 60K agents who registered with the FFM. Now there are 43K.
I don't know what you are looking for by asking those of us who have been in this business for a long time how our business has changed because a newbie will have a completely different experience.
First of all, most of us were earning 20-25% FY commissions when we entered the business, it allowed us to budget for marketing and still be OK. I don't know how anyone can have a marketing budget when FY commissions are in the 3-8% range, it just doesn't compute.
I fail to see how any newbie can succeed under ACA without committing substantial capital (at least one years worth of lead cost and income), it just doesn't work as a business model, particularly with the uncertainty that faces this law over the next few years.
Newbies who fail to focus on one specific niche almost always fail in the insurance business, my advice is to find one niche that is more stable and start learning enough to become an expert, maybe then you will find some success.
First of all, most of us were earning 20-25% FY commissions when we entered the business, it allowed us to budget for marketing and still be OK. I don't know how anyone can have a marketing budget when FY commissions are in the 3-8% range, it just doesn't compute.
I fail to see how any newbie can succeed under ACA without committing substantial capital (at least one years worth of lead cost and income), it just doesn't work as a business model, particularly with the uncertainty that faces this law over the next few years.
Newbies who fail to focus on one specific niche almost always fail in the insurance business, my advice is to find one niche that is more stable and start learning enough to become an expert, maybe then you will find some success.
Dang. I wish I had been earning 20-25%.
I was earning 10%. 6% wasn't a massive hit for me. But ask me in 3 years when the commissions drop off for my BCBS business.
My hat is off to you for building a successful business on 10%-how long did it take you to become cash flow positive and could you have done that under the Open Enrollment limitations in todays market?
It was well thought out for 3 years before I actually jumped off the cliff.
There were two ways to be successful in this market before ACA-your approach (several years of planning) and mine, which was to invest in marketing and leads and work my butt off from a cold start.
I don't think either of those is an option in today's ACA world-the first because of the limited time to sell, the second due to both severely lowered commission levels and the length of time it takes to get paid.
- Thread starter
- #8
I'm an agent at an agency that receives live transfers from the insurance carrier. It's not like I'm really on my own starting from scratch. Do you guys still think it will be a daunting task to succeed?
During open enrollment for Medicare the agency is getting quite a few walk-ins and phone calls. I can imagine Obamacare open enrollment will be the same.
During open enrollment for Medicare the agency is getting quite a few walk-ins and phone calls. I can imagine Obamacare open enrollment will be the same.
- 4,132
How to succeed with the ACA?
Look at it for what it is for us.... a plan change.
Every year insurance plan specifics change. We meet with clients and go over those changes and they either buy or not.
For anyone who looks at the ACA as a real problem I have to ask how long have you been doing this? Entering my 26th year in the business and the only consistent is the changes that occur.
Our job is to show clients how things work under the current situation. If you know how to do that, you'll be fine. If you look at this change (ACA) as too hard to deal with, it will be.
This is an industry where I haven't not heard that agents are on their way out, that ABC will end things as we know it for the last 26 years. Yet, here most of us are.
You just have to decide how much money and time you're going to put into health insurance based on what it generates in commissions. In my state, the payout is very poor, so I don't spend a lot of money on healthcare marketing. I do a lot of it, but pretty much on a referral basis.
Look at it for what it is for us.... a plan change.
Every year insurance plan specifics change. We meet with clients and go over those changes and they either buy or not.
For anyone who looks at the ACA as a real problem I have to ask how long have you been doing this? Entering my 26th year in the business and the only consistent is the changes that occur.
Our job is to show clients how things work under the current situation. If you know how to do that, you'll be fine. If you look at this change (ACA) as too hard to deal with, it will be.
This is an industry where I haven't not heard that agents are on their way out, that ABC will end things as we know it for the last 26 years. Yet, here most of us are.
You just have to decide how much money and time you're going to put into health insurance based on what it generates in commissions. In my state, the payout is very poor, so I don't spend a lot of money on healthcare marketing. I do a lot of it, but pretty much on a referral basis.
Define success. Its different for everyone.
Plus, what state are you in? What's the commission from the carrier? What's the average amount you will get on each policy (again, state specific)
If you need $5K/month to consider this a "success" how many policies do you need to sell per day?
Reality is that after 2/16 you won't be selling much.
AND MAKE SURE YOU ARE GETTING PAID DIRECT FROM THE CARRIER.
You don't want to assign commissions then get canned on 2/16 with nothing to show for OEP
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