Navigators Assistance..............

[AgentStone]

Until 4 years ago all my clients were small business or under 65 health insurance. I started transitioning to Medicare and completely bailed on the U65 business over a year ago.

It's not for everyone, and most new ventures will take some time to ramp up compensation, but it works for me.

I started planning my exit from U65 health insurance when Obamacare was signed into law. Spent a couple of years playing around with Mcare and other options before getting serious in late 2012.

I'd like to get out of U65 business completely. Or I should say...I'm being forced out. Even if a Republican gets into office, I don't think plans or commissions will change (or even be avail) in 2017.

What steps did you take to transition to Mcare 100%?

 

[rievandesign]

Sorry for the long delay in answering this. I have heard through a number of sources that the reason most companies are deciding not to pay SEP commissions have to do with the high lapse rate of the current SEP business. From what I have heard, and I would like some feedback on this, The laws are getting much more strict and it's making SEP business a little harder to write which should make SEP commission next year a probability. Now I guess I am in that small percent that has extremely high hopes that commissions change drastically in our favor come OEP.

 

[russelltw]

The loss ratio on SEP business with one of my carriers was over 200%. So every dollar of premium paid in was followed by over $2 of losses. To compound the issue, the SEP policies were only on the books for 3-4 months.

As for me, I plan for no comp next AEP for under 65. Will there be any, hard to tell. I like the approach of plan for the worst, hope for the best. The best in my opinion will be some commission. Will it be better than last year, no. I would stay in it just to help my clients renew or switch my current clients who are with a carrier that will likely pull out of NC. If they pull out, it could force the other carrier to pull out also.

Possibilities in my state:
1 - Most carriers pull out and nothing to sell on exchange
2 - One carrier pulls out, the other stays, but drops comp again to point it's not worth working u65 AEP.
3 - Both carriers stay, but drop comp to a level it's not worth working.

None of those sound good to me.

 

[rievandesign]

To be honest as much as what your saying strikes a chord with me, It depresses me more. Our firm has spent the past 2 years building out enrollmyself.com which is a program and WBE for on market place enrollment. In fact, we decided to make the majority of our product 100% free because of the issues with commissions. How can we charge agents for something they aren't getting paid on.

My prayer is that by not paying commissions for this whole SEP season insurance companies gave themselves room to increase commission during OEP. Again in our given situation we are searching for other ways to assist agents. But u65 health insurance is becoming more of the free gum in the cracker jack box.

 

[Newby]

To be honest as much as what your saying strikes a chord with me, It depresses me more. Our firm has spent the past 2 years building out enrollmyself.com which is a program and WBE for on market place enrollment. In fact, we decided to make the majority of our product 100% free because of the issues with commissions. How can we charge agents for something they aren't getting paid on. My prayer is that by not paying commissions for this whole SEP season insurance companies gave themselves room to increase commission during OEP. Again in our given situation we are searching for other ways to assist agents. But u65 health insurance is becoming more of the free gum in the cracker jack box.

I don't want to rain on your parade but...

Are you really risking your future on that pipe dream? Why waste another second being a victim of what someone else is going to do? Move on and put your efforts into things that you can control.

 

[rievandesign]

I understand what you are saying. Currently we are working on system that allows agents to add a click and buy system to their websites for all types of insurance not simply limited to health.

It's no longer enough to just market health insurance today. We all have to think outside the box. In your current business model what types of things do you think a WBE (Web Based Entity) could assist you with?