I am a health insurance agent. I do not attempt to hide my vocation with fancy titles like Financial Services Specialist. Although I am one of the few in my state to hold the Insurance Counselor’s license I am first and foremost and insurance agent. I do all lines of personal insurance but specialize in health insurance. At least I did until the Patient’s Protection and Affordable Care Act.
The new law mandates additional insurance coverages. Those new mandates will make the premiums that average Americans have to pay increase. The new law also limits the amount the health insurance companies are allowed to spend on things that are not directly related to health care. In other words, marketing and education. Those are the things that myself and every other insurance agent are paid to do.
Because of the new mandates, every insurance company that I am appointed with that offers health insurance to people under age 65 have given me notice that the insurance agent’s commission structure will be cut on January 1, 2011. They just do not know, yet, how much of a cut that will have to be. They are waiting for final rules from Kathleen Sebelius and the Department of HHS.
I assume that my income will be cut by a third to half of what it is in 2010. In 2014 the PPACA eliminates my vocation entirely. What is surprising is that people wonder why I am not happy with the Obama administration that is determined to eliminate the profession I have devoted myself to for 23 years.
The good news for my clients is that the cut in my commissions will offset some, but not all, of the premium increases that are coming with the new mandates. The bad news is that I will have to find other sources of revenue to offset what I will be losing.
The PPACA does not make any drastic changes to traditional Medicare. Two new supplemental insurance policies for Medicare were approved earlier this year. It is also anticipated that there will be a mass exodus from Medicare Advantage plans back to traditional Medicare in 2013.
When that happens I want The Boomer Barn, a division of The Insurance Barn, to be well established with a few specialists who are able to help people with their Medicare supplement questions.
Ideally, we will have enough Medicare supplement clients to offset the loss of our under age 65 clientele to HHS in 2014. Until then we still have to find a way to offset the major reduction in commission income that starts on January 1.