Regular readers know that I've decided to sit out this Open Enrollment season. I'm far from alone in this, but got email yesterday from good friend and colleague Scott M with a first-hand report of what he's experiencing, and he's graciously allowed us to share it:
"I was talking with a client earlier today and I found an old renewal for him. It was a $5,000 deductible and the premium (prior to renewal) was $345.72 for him, his wife and three kids. The plan he is going with for 2017 is a $5,500 deductible and the premium is $1,317.90. I sent the attachment to him and he said, “the funny thing is I was just as pissed back then as I am now”. I told him I made more when his premium was $345 than I do at $1,300.
Yep, those were the good ole days."
Now, how is it possible that a premium one third the size of the renewal actually generated more income (commission) to the agent? Well, Scott explains that, too:
"I’m writing very little. And only with BCBS. The on-exchange folks around my area are completely screwed as none of their doctors nor the local hospital is in network of the on-exchange plans. Plus, Blue Cross is really the only one paying anything ($10 Per Member Per Month if you have a total of 10 members or more). I’ve been preparing quotes for my existing clients in the Blue Cross system and having them emailed with the instruction to enroll using the link if you want one of these plans. If not, you’re on your own. Can’t waste any time on it. Especially for the single folks. $10 per month for that headache? No thanks. At least the one I sent you guys is a 5 person household where I’ll make $50 per month. For him I’m willing to do a little work."
Remember, agents make their income from commissions (both new business and renewals). And why should you care? Because a professional agent is uniquely positioned and qualified to help you figure out the best, most cost-effective plan available.
Which is kinda the point, no?
"I was talking with a client earlier today and I found an old renewal for him. It was a $5,000 deductible and the premium (prior to renewal) was $345.72 for him, his wife and three kids. The plan he is going with for 2017 is a $5,500 deductible and the premium is $1,317.90. I sent the attachment to him and he said, “the funny thing is I was just as pissed back then as I am now”. I told him I made more when his premium was $345 than I do at $1,300.
Yep, those were the good ole days."
Now, how is it possible that a premium one third the size of the renewal actually generated more income (commission) to the agent? Well, Scott explains that, too:
"I’m writing very little. And only with BCBS. The on-exchange folks around my area are completely screwed as none of their doctors nor the local hospital is in network of the on-exchange plans. Plus, Blue Cross is really the only one paying anything ($10 Per Member Per Month if you have a total of 10 members or more). I’ve been preparing quotes for my existing clients in the Blue Cross system and having them emailed with the instruction to enroll using the link if you want one of these plans. If not, you’re on your own. Can’t waste any time on it. Especially for the single folks. $10 per month for that headache? No thanks. At least the one I sent you guys is a 5 person household where I’ll make $50 per month. For him I’m willing to do a little work."
Remember, agents make their income from commissions (both new business and renewals). And why should you care? Because a professional agent is uniquely positioned and qualified to help you figure out the best, most cost-effective plan available.
Which is kinda the point, no?