With the advent of more federal intervention in our health care delivery system, health insurance brokers are concerned for their future. Will they still play a role as the national health care bill takes hold, and if so will they survive financially at the same level of compensation they have come to demand and expect?
Some health insurance brokers will remain active, but many will exit the business. Those that remain will not play as important a role as in the past, but will simply be technocrats and service representatives for a small handful of insurance carriers still active in the market.
Compensation will be paid on a limited per employee basis. For example, the Utah Insurance Exchange (yes, Utah has already set up their own exchange) pays brokers $37 per employee per month commission. One of the BUCA’s is contemplating paying a standard broker commission of $10 per employee per month. This compensation would be separate from the premium calculation and paid through a service agreement with the broker, so as to not jeopardize the Minimum Loss Ratio requirement due to take effective in January 2011.
How does that compensation compare to todays lucrative health insurance broker compensation package? “Dismal” is the first adjective that comes to mind. A “disaster” is another view and “suicide” a more attractive and viable alternative for some brokers too old (or lazy) to enter a new profession.
Times are changing, and changing fast. Is “Hope and Change” an oxymoron?