As Expected Health Care Law Excludes Agents

As more and more information comes out about the upcoming health care law implementation, one thing is clear, agents are not included in the equation. Effective 2012 health insurers must use 85% of the premiums collected for health costs. The rest is for administration and profit. Whoa there nellie... where is the agents commission? Well its not in there or at least not expected to be in there. Actually the health insurers and the Fed are mute on the subject. The agents associations are hearing that no one meant to cut out the agents and health insurers will have to squeeze the cost of paying agents out of the 15% leeway they have, which means it is not going to happen. By the looks of this, agents are going to have to get paid directly by the consumer. If this does not get changed before 2012, I see a major shift in the compensation of agents from commission to fees. I also see this carrying over to other lines of insurance. Are the agents in the country ready for this switch that may occur overnight? Not now, but they will adapt.  Until next time know your risks and be careful out there. K

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