My United Healthcare Rep was pretty open with me

[Packerland]

Then the greed started w FMOs and brokers.

Here we are with a shit show

So let me get this straight… you've been on the forum for less than a week… your hands-on experience was with United in the late 90s and early 2000s… and now you're the authority on what caused the "shit show"… impressive…

Let's be honest—the real mess didn't start with brokers or FMOs… it started when greedy carriers opened the floodgates to call centers… those are the folks churning business left and right… flipping plans year after year with zero relationship to the client…

Brokers, on the other hand, are the ones trying to keep clients in plans that fit long term… most of us don't have time—or any incentive—to constantly switch our book… maybe that's a perspective you didn't see from inside a carrier…

 

[EckoRomeo]

I was a captive agent whose position was terminated in favor of a broker contract. The math hasn't changed. I can't think of a financial services product where the main distribution channel is a W-2 sales force. Not mortgages, not investments, not life insurance, not P&C. There are more companies that are exclusively brokers than companies exclusively internal sales. And the largest companies all utilize broker channels as their primary distribution channel.

 

[Packerland]

The tetherball pole is open if u want it now.
You sound like a bully in 3rd grade.

Childish.

Haha… if calling out recycled talking points from 25 years ago makes me a 3rd grade bully… then I'll bring my lunch money and meet you at recess…

But seriously… I'm just pointing out that blaming brokers and FMOs for this "shit show" ignores what really broke the system… call centers and carrier greed… if that stings a little, maybe it's because there's some truth in it…

 

[Packerland]

I was a captive agent that whose position was terminated in favor of a broker contract. The math hasn't changed. I can't think of a financial services product where the main distribution channel is a W-2 sales force. Not mortgages, not investments, not life insurance, not P&C. There are more companies that are exclusively brokers than companies exclusively internal sales. And the largest companies all utilize broker channels as their primary distribution channel.

This is one of the sharpest takes I've seen… and you're absolutely right—the math hasn't changed, and your examples are perfect…

There isn't a single major financial product where W‑2 sales forces dominate… not mortgages… not investments… not life insurance… not P&C… yet carriers keep convincing themselves they can "reimagine" distribution with a model that's already proven less efficient…

The biggest, most successful companies rely on brokers because it works… scale, lower fixed costs, and stronger client relationships… this should be required reading for any carrier exec thinking they're about to reinvent the wheel…

 

[Millwood]

Gotta remember these are the same executives that gave themselves $65 million on top of salary to just stay around for 3 years. They are so detached from reality it's a wonder the business can survive. Greed is blinding.

 

[DonP]

I've got to push back on the idea that agents are "flipping" their books every year… there's no $$ incentive for that and no time during AEP to even attempt it…

The only reason I ever move a client is if something significant changes—like formulary updates, network issues, or major benefit shifts… otherwise, keeping clients happy where they are is better for everyone…

Sure, some agents will try to sell a different plan if they meet someone new during AEP… that's just the nature of a competitive market… but most of us aren't out here churning for the sake of it… we're building long-term relationships and doing what's best for both the client and the carrier…

This is what I never understood. No agent Ive ever known flips there book unless they have to . There's zero financial reason and it's hell . Now all agents will move other plans if they can . So in that respect there is a ton of movement. Mr Somarco's been sheltered selling sups were rate increase 3-5% a yr and people never move . 14-30% rate increase for yrs to come will be the norm and he'll now have to flip clients to retain them . Welcome to chaos

 

[somarco]

A lot of the big carriers favored the large call centers over the independent agent

Golden Rule (now UHC) opened their doors to a very large call center back in the 90's. They were flooded with health insurance apps which delighted the sales department.

Many of the apps were for the "value" plan . . . a low premium plan that was very attractive as long as the buyer avoided inpatient care. Their home office was inundated with service calls and the loss ratio on that block was horrible.

Paraphrasing Thomas Jefferson . . . you get the type of business you deserve

 

[Special Agent]

This is what I never understood. No agent Ive ever known flips there book unless they have to . There's zero financial reason and it's hell . Now all agents will move other plans if they can . So in that respect there is a ton of movement. Mr Somarco's been sheltered selling sups were rate increase 3-5% a yr and people never move . 14-30% rate increase for yrs to come will be the norm and he'll now have to flip clients to retain them . Welcome to chaos

Don do you know what the typical charge back period for the call center loa is? Are these call center fmo gaining anything from enrollments that term before the 4th month?

 

[Special Agent]

Golden Rule (now UHC) opened their doors to a very large call center back in the 90's. They were flooded with health insurance apps which delighted the sales department.

Many of the apps were for the "value" plan . . . a low premium plan that was very attractive as long as the buyer avoided inpatient care. Their home office was inundated with service calls and the loss ratio on that block was horrible.

Paraphrasing Thomas Jefferson . . . you get the type of business you deserve

I sold some of the Golden Rule back in the day. Anybody remember when the individual HMO plan was a new thing back in the early nineties? UHC bought Ramsey HMO in 1994 and made a big push for the individual HMO.i was in central fl at the time and there was a flood of new individual hmo plans from Physcians health plans,wellcare,sunstar,pca and they grew super fast because the benefits on paper were so much better than the other major medical ppo available at the time and then imploded super fast when the claims started coming in.it was easy money at first ( they would let independent come in to their office and take the flurry of incoming calls )then the customer questions started up and it consumed all my time to the detriment of my med supp book of business at the time.

 

[FallerWifey]

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.

That sucks. Glad to know, though.