Why are private insurance brokers REQUIRED to be licensed?

[flacaltenn]

Why are private insurance brokers REQUIRED to be licensed?

And the only requirement for an ObamaCare "navigator" is that they worked for Acorn or ObamaForAmerica last week?

OBVIOUSLY --- the bar for qualification is MUCH LOWER when the government goes into the the biz....

 

[MeBelle]

Policies can be bought from insurance brokers, but agents say the federal government seems intent on steering people to websites, rather than encouraging them to go to the hometown agencies where they buy their life, home and auto insurance.

"We're being totally shut out of it publicly; I never hear a word," said Richard Allen of Allen Associates of Manchester. "They never, ever say, 'Why don't you call your broker-agent who already takes care of your insurance and see if they can help you.'"

The Affordable Care Act regulations allow brokers to sell health insurance plans available on the federal insurance exchange once they have completed a certification course. Allen, who has been selling insurance since 1976, said he has completed the course.


http://insurancenewsnet.com/oarticl...ut-out-of-aca-insurance-market--a-410970.html

 

[MeBelle]

Some of the brokers, who were gathering for a meeting of the Chicago and Northeastern Illinois Association of Health Underwriters, also are worried about threats to their incomes. Their already-shrinking commissions from insurance companies are dwindling further because of the health care law's requirement for insurers to reduce administrative costs and put more dollars into medical care.

Some brokers also see a threat from the law's navigator program, which trains outreach workers to help consumers navigate the process of applying for insurance. The government-funded navigators are barred by Illinois law from advising consumers about which insurance policies to buy, but they still edge uncomfortably close to the brokers' traditional turf, brokers said.

"I don't think the people know. They think the navigators are (insurance) agents," said Charles Wheeler, a broker based in McHenry. "They're providing a valuable service, but it should be in partnership with the broker community."

"If we don't get our message out, we as an industry are going to die," said Rich Fahn, a broker in the Chicago suburb of Northbrook.

Crain's Chicago Business : Subscription Center

 

[JakeStarkey]

Yup, I am crying for the health insurance industry's profit line.

 

[flacaltenn]

Excellent posts...

So Professional brokers who have been in the biz for decades have to be certified for exchange traded policies --- but "navigators" dont even get a proper background check??

WhereTF is Geraldo on this? And how can you RUN and ADVERTISE a NATIONAL exchange that DOESN'T employ licensed brokers???

 

[MeBelle]

Excellent posts...

So Professional brokers who have been in the biz for decades have to be certified for exchange traded policies --- but "navigators" dont even get a proper background check??

Correct!

WhereTF is Geraldo on this? And how can you RUN and ADVERTISE a NATIONAL exchange that DOESN'T employ licensed brokers???

I am unclear on this aspect.

 

[MeBelle]

Yup, I am crying for the health insurance industry's profit line.

No need to cry, Jake.

ACA already established specific requirements regarding admin costs.
Apparently a portion of admin costs were Broker commissions.

I feel bad for the Mom and Pop agencies that will be going out of business.

 

[flacaltenn]

Where are the consumer advocates? The screams for licensing and broker standards?

Do you suck-ups not understand that these exchanges ARE BROKERAGES? And how on Earth do the Feds get away with hiring brokers off the streets with NO PRIOR insurance background??

 

[Care4all]

navigators don't get a commission for selling you a specific policy and navigators are not allowed to lead or recommend a specific policy, so it appears that they are only there to help you navigate the system....????

Whereas Brokers do get a commission on selling you a specific policy...so they aren't the same level, and have a higher level of expertise.

The 'navigators' are only twiddling thumbs right now anyway, since the system is defunct...

And why don't these brokers advertise themselves?

Can the insurance brokers really sell you a policy that is on the exchange, with subsidies, without the citizen in need ever having to go to the broken healthcare.gov web site?

Or am I misunderstanding what is being said?

Cuz if brokers can sell them an exchange policy off of the exchange and also secure their gvt subsidy, if I were these brokers I'd spend my own advertising money and run ads all over the place on that.....

IF the people looking for insurance do not expect a gvt subsidy, then they should shop around or use an insurance broker to help them and not bother with the 'broken' exchange this year, imho. A few years from now, policies on the exchange should be more competitive than they are now...with group policy plan rates, IF they ever fix the system and they get the sign ups they projected....that's a big IF.

 

[flacaltenn]

navigators don't get a commission for selling you a specific policy and navigators are not allowed to lead or recommend a specific policy, so it appears that they are only there to help you navigate the system....????

Whereas Brokers do get a commission on selling you a specific policy...so they aren't the same level, and have a higher level of expertise.

The 'navigators' are only twiddling thumbs right now anyway, since the system is defunct...

And why don't these brokers advertise themselves?

Can the insurance brokers really sell you a policy that is on the exchange, with subsidies, without the citizen in need ever having to go to the broken healthcare.gov web site?

Or am I misunderstanding what is being said?

Cuz if brokers can sell them an exchange policy off of the exchange and also secure their gvt subsidy, if I were these brokers I'd spend my own advertising money and run ads all over the place on that.....

IF the people looking for insurance do not expect a gvt subsidy, then they should shop around or use an insurance broker to help them and not bother with the 'broken' exchange this year, imho. A few years from now, policies on the exchange should be more competitive than they are now...with group policy plan rates, IF they ever fix the system and they get the sign ups they projected....that's a big IF.

Those are excellent points. The media is doing a really lousy of explaining that PRIVATE brokers and PRIVATE exchanges still exist.. This is a calculated move by HHS to con folks into believing that they are the only game in town.. I will NEVER deal with navigators. I want EXPERIENCE and accountability.

The HHS wants to herd as many sheep into THEIR pool as possible. And their problem is that they will get all the sheep that are going on the public dole in one way or the other. My understanding is that a private broker can set you up with a ACA compliant policy, but cannot deal with the subsidies or quote "subsidized" costs unless they have ACA certification and herd you into the govt exchange.

But here's the problem. I see NO DIFF between a brokerage and an exchange. BOTH are representing specific products and insurance clients, working with the general public and doing ENROLLMENT and coordinating APPROVALS. Seems like govt is providing cut-rate and amatuer "brokerage" services for a complicated financial product..

Why should they be able to do that without LICENSED and experienced brokers?

 

[auditor0007]

Yup, I am crying for the health insurance industry's profit line.

I have to say, keeping brokers in the mix would have probably been a smart move compared to running everything through a single website. My agent has been very helpful over the years and is very informed.

These navigators are going to prove useless as they really don't know anything more other than how to sign you up. Also, not being able to make recommendations on which plan is better for a person is really dumb also. Most people don't know Jack about their plans or how they work. What is worse is that hardly anyone understands what is actually covered under preventative care and how that will affect everyone's bottom line. With preventative care being covered 100%, taking a higher deductible will actually work out very well for many people, but unless you know exactly what you are paying every year and what is covered under preventative care, it's hard to determine what to do. It's no longer as simple as saying I pay a $30 copay to see the doctor and everything else goes against my deductible.

 

[flacaltenn]

Yup, I am crying for the health insurance industry's profit line.

I have to say, keeping brokers in the mix would have probably been a smart move compared to running everything through a single website. My agent has been very helpful over the years and is very informed.

These navigators are going to prove useless as they really don't know anything more other than how to sign you up. Also, not being able to make recommendations on which plan is better for a person is really dumb also. Most people don't know Jack about their plans or how they work. What is worse is that hardly anyone understands what is actually covered under preventative care and how that will affect everyone's bottom line. With preventative care being covered 100%, taking a higher deductible will actually work out very well for many people, but unless you know exactly what you are paying every year and what is covered under preventative care, it's hard to determine what to do. It's no longer as simple as saying I pay a $30 copay to see the doctor and everything else goes against my deductible.

I too -- thought it was just a dumb idea to staff a national insurance exchange with unlicensed amateurs.. But I just now found out watching the Senate grill HHS this morning, that ACA PROHIBITS hiring qualified LICENSED brokers as part of the Exchange staffing..

((Another reason why this whole deal needs to be re-created))

Imagine that --- licensing and accountability is so important for mom and pop insurance brokers and consultants. But your life and finances are in the hands of rank unvetted amatuers BY DESIGN ----- when the Federal Govt gets into the biz...

No way I'd EVER voluntarily do business with an outfit designed that way..