Navigation Links
Insurance Brokers Express Worries About Compensation Rates for Exchange-Based Sales in Latest Issue of AIS's Health Plan Week

Washington, DC (PRWEB) August 28, 2013

Six weeks before open enrollment begins for public exchanges, health insurance agents and brokers say they still do not have vital information on coverage options, premiums and commission payments, or even if commissions will exist in 2014. The Aug. 26 issue of Atlantic Information Services, Inc.’s (AIS) Health Plan Week features a case study on the Georgia insurance market, where two long-time agents worry about the impact this lack of information, and the potentially reduced compensation rates, will have on business models.

The Affordable Care Act (ACA) does not mandate that brokers be paid a commission for selling insurance, but does stipulate that any commission paid by a carrier be equal for products sold inside and outside of the exchanges. Rick Bailey, president of brokerage Rick Bailey & Company, Inc., based in Woodstock, Ga., says historically insurers have paid between 10% and 12% for first-year commissions in the individual market on a percentage-of-premium method. Commissions generated by renewals are all over the map, but run around 5% to 8%, he says.

But for 2014, the numbers being discussed in broker circles are much lower. “I’ve heard first year will be down to 5% and as low as 2% to 3%,” Bailey says. Insurers have been cutting commissions in order to comply with the health reform law-mandated medical loss ratio requirements that went into effect in January 2011. The ACA requires insurers to spend at least 80% of individual and small-group premiums and 85% of large-group premiums on medical costs or quality improvement activities, with the excess refunded to members. Agents and brokers are directly impacted since their commissions fall into the 15% to 20% of premium revenue insurers can spend on administrative expenses.

A second market veteran, Russ Childers, an insurance agent based in Americus, Ga., and former president of the Georgia Association of Health Underwriters, tells HPW “the compensation could be zero. I mean, they could decide not to compensate agents.”

“We’re not really sure if we’re going to be paid on a percentage-of-premium basis or a per-person per-month basis,” Bailey says. “If it gets too low, then how do you as an agent, from a business perspective as well as an overhead perspective, how do you make that work and still be able to stay in business?”

Visit to read the article in its entirety, which includes an analysis of the other challenges brokers face and potential new business opportunities they may pursue.

About Health Plan Week
Published since 1991, the 8-page weekly newsletter Health Plan Week provides timely, objective business, financial and regulatory news of the health insurance industry. Coverage includes new benefit designs and underwriting practices, new products and marketing strategies, mergers and alliances, financial performance and results, Medicare and Medicaid opportunities, disease management, and the flood of reform-driven regulatory initiatives including medical loss ratios, exchanges, ACOs and myriad benefit design changes that are mandated.

About Atlantic Information Services
Atlantic Information Services, Inc. (AIS) is a publishing and information company that has been serving the health care industry for more than 25 years. It develops highly targeted news, data and strategic information for managers in hospitals, health plans, medical group practices, pharmaceutical companies and other health care organizations. AIS products include print and electronic newsletters, websites, looseleafs, books, strategic reports, databases, webinars and conferences. Learn more at

Read the full story at

Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Health First and Florida Hospital Healthcare System Partner to Offer Health Insurance Products
2. Long Term Care Insurance Buyer’s Age Drops Dramatically
3. SunshineBloggers Urges Readers to Consider Term Life Insurance
4. Homeowners Hail Damage Sends Many Scurrying For Insurance Coverage
5. Zane Benefits Publishes New Information on Utah Health Insurance Exchange Rates
6. Frequent Denver Wildfires Endanger Residents, Local Agency JJ Insurance Offers Wildfire Protection and Safety Information
7. Tolman and Wiker Insurance Services, LLC Sponsors ACT Today!’s 8th Annual Denim & Diamonds for Autism
8. Zane Benefits Publishes New Information on Florida Health Insurance Exchange Rates
9. Zane Benefits Publishes New Information on Maryland Health Insurance Exchange Rates
10. The Future of Life Insurance, Provides Great Rates Without Intrusive Medical Exams
11. Term Life Insurance With No Medical Exam Now Available Online from
Post Your Comments:
(Date:11/27/2015)... (PRWEB) , ... November 27, 2015 , ... ... affecting the health care in America. As people age, more care is needed, ... costs are rising, and medical professionals are being overworked. The forgotten part of ...
(Date:11/27/2015)... CA (PRWEB) , ... November 27, 2015 , ... Lizzie’s ... , The company is offering customers 10% off of their purchase of lice treatment ... treatment at full price. According to a company spokesperson. “Finding lice is a sure ...
(Date:11/27/2015)... ... November 27, 2015 , ... Consistent with the Radiology ... Building Better Radiology Marketing Programs meeting will showcase some of the best ... at Caesars Palace in Las Vegas with a pre-conference session on a collaborative ...
(Date:11/27/2015)... ... November 27, 2015 , ... Keeping in mind ... mental health and wellness consultation, has collaborated with a leading web-based marketplace for ... gap experienced by parents and bring advice from parenting experts within their reach. ...
(Date:11/27/2015)... ... , ... Avid collector, Andrew Hawley from Vintage Rock Posters, announces his search ... one of Joplin's most famous and beautiful concert posters. The concert was held on ... Arbor. The According to Hawley, "It is hard to believe that Joplin's stardom was ...
Breaking Medicine News(10 mins):
(Date:11/25/2015)... , Nov. 25, 2015 ... the addition of the "Global Brain ... their offering. --> ) ... "Global Brain Monitoring Devices Market 2015-2019" ... Research and Markets ( ) has ...
(Date:11/25/2015)... THOUSAND OAKS, Calif. , Nov. 25, 2015 /PRNewswire/ ... of a Biologics License Application (BLA) with ... Administration (FDA) for ABP 501, a biosimilar candidate to ... the first adalimumab biosimilar application submitted to the FDA ... biosimilar pathway. Sean E. Harper , M.D., ...
(Date:11/25/2015)... WOODBURY, N.Y. , Nov. 25, 2015  Linden ... access and optimizing treatment outcomes for patients suffering from ... its request for a Temporary Restraining Order (TRO) enjoining ... between the two companies. --> ... aggressively pursuing all of its legal options. ...
Breaking Medicine Technology: