I’m A Reformed Broker – Having Second Thoughts Is Not Possible…………

Making $2 million on an 8,000 life Texas school district is really easy. I know because it’s been done, even as we speak…………………..

By Bill Rusteberg

Selling status quo  employer sponsored health insurance plans is highly lucrative for all stakeholders. Stakeholders include managed care networks and their provider partners, pharmacy benefit managers, and others who make up the traditional health care delivery supply chain in this country.

Making $250,000 on a 300 employee life case, mostly undisclosed income, is easy (write RiskManger@RiskManagers.us and I will spill the beans). Making $2 million on an 8,000 life Texas school district is really easy. I know because it’s been done, even as we speak.

But years ago I decided, after looking in the mirror one sober morning, that meeting my maker was fast approaching and atonement was at hand in order to enter the Pearly Gates in good standing. I became a Reformed Health Insurance Broker out of fear (and my mother’s memory, RIP).

I became a fee based insurance consultant. Man, that was a life changing event! Working three times as much for 1/3 the pay, dependent on an employer’s checkbook (as opposed to a carrier’s checkbook), meant commitment of the highest order (or stupidity of the highest order). I actually had to prove my worth every single month.

Meanwhile, back at the ranch status quo brokers and their carrier / TPA partners were sitting pretty.  “I work for you for free” they told their clients, “The carrier’s pay me. And, I represent your interests!”

“Free” is really tough to compete against.

“Bill, what will your charge us for consulting?” I’m routinely asked. “An arm and a leg” I usually  reply. “Why, that’s outrageous, my broker charges nothing and he gets our renewal increases down every single year!”

So the temptation is evident. Stealing has never been easier, and there is no punishment whatsoever. But alas, one has to live with the choices they make.

 

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