My United Healthcare Rep was pretty open with me

[Medicare bro]

I directly asked her why the company would prefer to move away from using independent agents, given that it would be significantly more cost-effective than hiring additional internal staff. She explained that UnitedHealthcare is willing to invest more in in-house agents because they are frustrated with the high turnover rates associated with brokers and call centers. In many cases, clients are switched to new plans annually, which undermines long-term retention efforts.





She emphasized that their goal is to establish lasting relationships with clients. Additionally, she noted that brokers often fail to adequately present or prioritize ancillary products. As a result, UHC is pursuing a fully in-house model—despite the higher cost of salaries and benefits—because they believe it will ultimately lead to better service, improved client retention, and increased product penetration.

 

[straightnochaser]

RIP

 

[InsuranceGuy29]

I directly asked her why the company would prefer to move away from using independent agents, given that it would be significantly more cost-effective than hiring additional internal staff. She explained that UnitedHealthcare is willing to invest more in in-house agents because they are frustrated with the high turnover rates associated with brokers and call centers. In many cases, clients are switched to new plans annually, which undermines long-term retention efforts.





She emphasized that their goal is to establish lasting relationships with clients. Additionally, she noted that brokers often fail to adequately present or prioritize ancillary products. As a result, UHC is pursuing a fully in-house model—despite the higher cost of salaries and benefits—because they believe it will ultimately lead to better service, improved client retention, and increased product penetration.

Not doubting you, but I haven't heard anything about this at all. What's her name, what region/city, and where did you hear this plan, initially?

Also, if true, the REAL reason for high churn is because no one and their mother, dog, neighbor, and friends trusts United anymore because of what happened with Luigi. And that's only one reason. The industry is MASSIVELY disrupted right now, and many times you have no choice but to switch your clients somewhere else.

I have never had a harder time matching up plans to doctors and hospitals than I have right now. Do you honestly think I want to be constantly switching people and creating extra work and headaches for myself?? No broker does. I despise churn too.

Ultimately, this isn't gonna work anyway. Perception is reality. They think their in-house team is gonna affect retention, and it's not. People will go with whatever plan they can get the best deal.

Network is the most important thing with any plan. I don't care how great your plan is, if your doctor isn't in-network, you're leaving the plan. Plain and simple.

So, whatever low IQ empty suit MBA that thought this plan up inside United, it's not gonna work. They have a MAJOR brand/trust problem, and again, people leave plans for a myriad of reasons that are not related to loyalty or anything.

You can want to be as loyal to a brand as you want, but again, if they're charging you a lot more money, or if your doctor doesn't take the plan or no longer takes the plan, you're gone.

They're trying to control market mechanics that they really can't control. Being nice isn't gonna make people stay with their plan. Most people don't trust insurance companies.

That's why most people don't directly call insurance companies. And that's why most business an insurance company gets comes from brokers.

But you know who they do trust? Their brokers/agents who are likely family. If they're trying to downplay, sever, or eliminate the broker importance or relationship, believe me, it's been tried before and it always fails.

People don't want to talk to faceless people on the phone that they don't know....especially ones directly from insurance companies. My clients groan every time they have to talk to an insurance company or call center.

People don't like them or trust them. Period. Ultimately, they want local people they can trust that come from trusted sources they already know.

Also, not exactly a good business plan to piss off the entire army of independent brokers who write your plans, and then who won't write your plans if you start screwing them around.

Aaaaaaaall that business is gonna go elsewhere. Just missing out on tons of free business to people you literally can pay peanuts to. Pretty f*cking stupid if you ask me. But then again, we do live in a total and complete Idiocracy, so literally nothing shocks or surprises me anymore.

 

[InsuranceGuy29]

You will see many carriers follow this model from Medicare Complete Ohio (bak in 1984-2007). This is just the beginning stages of pulling in all their resources.

Brokers are exhaustible entities and will be replaced over time, imo.

Already happening.

Already been tried in the past, and was already a massive failure. Some people always think they're gonna reinvent the wheel or change human nature. Not gonna happen.

 

[InsuranceGuy29]

Already happening.

Only thing happening is plan elimination of some plans they don't want to offer any longer. It's a market correction.

 

[InsuranceGuy29]

I disagree. I wouldnt bank on brokers being given any carrier loyalty or respect as the money drys up.

They already starting to use inhouse newbies with leads galore and pay peanuts. Enrollees will get calls from online submissions from inhouse agents as well.

Its was successful in OH. I have seen their lead sheets. They are easy sales or AOR grabs for inhouse.

Ruthless questionable inhouse ethics imo

Sure they'll get some business, but the ones they're signing up won't stay, which will make the plan backfire. If there's on thing I learned from being in this business for a long time.......easy come, easy go. When there's no trusted local broker to foster and guide the relationship, people leave.

Cheap leads lead to terrible clients that are a ton of work who will bolt off like a butterfly when they can save 3 cents a month. They're professional "shop-arounders."

And again, as I previously alluded to in my previous posts, there are a ton of market mechanics at play well beyond United's control that will cause tons of people to leave, no matter how much they're liked by a person, or how loyal that person may be......

Doctor no longer in plan? Gone. Hospital no longer in plan? Gone. Prescriptions too high or not covered? Gone. Other companies offering better extra benefits....lower copays, lower deductibles, etc.? Gone.

People leaving for these reasons might not actually always be in the person's best interests overall, and that's where a broker can save that company/relationship and get them to understand that. If a broker isn't involved, they're just gonna leave.

Most people don't even answer the phone anymore if they don't already know the caller. Hell, most people I know have numbers that aren't already in their contacts blocked. 99.9% of people also don't answer junk mail. And most people don't answer their door anymore.

I see agents and lead companies complaining about this all the time nowadays on different forums. "How can I reach people???" "How do you succeed in this business if you can't get people to answer your call (or the door, or the mail)????"

These are unique problems nowadays in society. Believe me, it's never been harder to reach the general public. They DO NOT talk to strangers.

United also has very unique negative branding issues that are well beyond the basic issues other carriers are facing right now with market corrections. I'm not being arrogant by any means, but as time goes on, you'll see what I'm talking about.

The future of the business is trusted relationships with trusted friends who know a broker. Key word..."trust." That's kind of always how it's been, but in a country of almost zero trust of strangers, in modern society, it's never been more true.

I built my book slowly and steadily on a solid foundation of people I know, then I got people they know. I never bought leads or chased random people on the phone, by mail, or at their front doors. My churn rate is non-existent aside from deaths.

Insurance companies have never been more UNpopular and DIStrusted in society...especially United. Believe me...long term, this isn't gonna work.

 

[InsuranceGuy29]

Sorry. I worked closely w captive reps in Medicare complete 1994-2000 in OH and it worked.

Opening it up to brokers created alot of problems. Now they are slowly taking it bak. IMO

We'll see soon enough.

That's a small timeframe in history. If it was actually successful, brokers wouldn't still exist there.

 

[InsuranceGuy29]

What u failed to understand is that was my timeframe. It was successful for over many years.

But it didn't work long-term and overall. That's my point. That's a very short time frame. And as I highlighted in my previous posts, society was VERY different back then. Much more trusting, open, and happily willing to engage with strangers.

Insurance companies weren't generally hated like they are now. The industry reputation and sociology of society was completely different. If some of these companies stopped using brokers as punching bags, their businesses would be thriving.

Some companies have leaned into brokers more nowadays. GTL is one of them. Great company...takes care of us...never had an issue....they pay as advertised. I happily give them as much business as possible.

A few other companies are stressing how important brokers are to them, because they have intelligent leaders. They understand the points I'm making and can read the tea leaves well. The ones that think they're gonna go it alone or abuse brokers and the general public that signs up for them are in for a rude awakening.

 

[InsuranceGuy29]

Then the greed started w FMOs and brokers.

Here we are with a shit show

Agree to disagree. Insane leftist governmental policies and terrible mismanagement/greed inside some insurance companies got us here. Not saying some brokers and some FMO's aren't crap, but most of the problems on the broker side are huge call centers. I don't even classify them as brokers, because they're not. They're call centers...their own thing. Overall, with the problems in the industry, brokers/FMO's are a literal sliver. We're just used as a convenient scapegoat.

 

[annon123]

United also has very unique negative branding issues that are well beyond the basic issues other carriers are facing right now with market corrections. I'm not being arrogant by any means, but as time goes on, you'll see what I'm talking about.

However one thing they do have going for them is the AARP hook/bait.

Many people who join AARP believe that AARP is endorsing UHC rather than AARP is just selling the use of their name for royalties. There is outrage expressed by some when learning on the AARP forums that it is just a royalty arrangement. Also some on the forums question why AARP would "endorse" UHC if there are problems since AARP has the best interests of seniors as their first priority (Most don't know about the for profit side of AARP (from about 1.2B in royalties a year) and presume all they do is on the non-profit side and presume they are a charity.). It can be difficult to convince some of those people anything to the contrary when they believe this. They also figure AARP is a non-profit so they can believe them.

I don't know how far that will carry them, but it will help them at least somewhat. I'd suspect the most common misperception is the "endorsement" belief by a non-profit who has their best interests at heart. As most aren't on the forums many will never find out anything to the contrary and stay loyal or switch from an MA if what is important to them (networks now out of network) to a Supp (presuming they will pass medical underwriting). The average income of AARP members is enough above the poverty line that premiums won't kill most of their budgets (and most aren't caught in the MA out of pocket issues for people can afford neither). Most don't know you can drop your AARP membership after you have signed up for a UHC plan and only have to sign up again if you want to switch it.

In my opinion ignorance by many of those AARP members likely will carry UHC further than might otherwise happen if there was not the AARP connection.