Health Insurance Brokers Going Broke – Income Reduced to $500,000

Best’s Review, April 2011 article “No Remedy in Sight” outlines the declining fortunes of health insurance brokers nationwide.

“Brian Borshoff has watched the annual revenue at his insurance agency plunge from about $1.3 million to $500,000 in just three years.”

“In the beginning of 2008 we had 39 groups with medical plans,” said Borshoff, owner of Carmel, Ind. based Borshoff and Associates. “Now were down to 13 or 14 groups.”

“When he calls clients now to discuss moving health plans, they respond by saying that they will wait for the government to take over. ”

Allison Wilgus, of Health Brokers of Florida said “Huge decrease in 2011 commissions makes it tough for any real, educated adviser to continue practicing.” Tom Webber of Franklin Benefit Solutions of Grand Blanc, Mich said “In Michigan they have reduced commission for small market. Large market will probably soon follow. Moving toward a fee-based approach.”