Having started my 20 year insurance agent career in the individual health insurance side of the business, I am fascinated by the fact that our government wants to be the single payer in the system. Make no mistake about it, our power hungry government never wanted to fix it, they want to control it. I am not a conspiracy theory type, but our politicians want more socialism and less freedom in this country. Personally, it is not a democrat or republican issue; they are both cut from the same cloth. I have said from years ago it would not cost the American taxpayers any money to fix our out of control healthcare system. All the Politian’s had to do was pass a law forcing all doctors, clinics, hospitals, etc. to post their pricing up front and allow the American people to shop. Let’s face it we spend more time clipping coupons for our groceries than we do shopping which hospital charges the least amount to perform a MRI. The free market capitalism system always corrects pricing issues when it is allowed to work.
Is Obamacare the solution? I read an article by Wall Street Journal reporters Christopher Weaver and Anna Wilde Matthews concerning the breakdowns of Obamacare. It seems some health insurance companies are already interpreting the Obamacare rules quite literally. In the Obamacare law, there are provisions for employers to buy “low-benefit” plans. This means health insurance companies have to cover things like preventive care or physicals, limited doctor visits and generic drugs but not things like surgery and hospitals stays. I have never heard of someone filing medical bills bankruptcy over owing for a physical but I have personally met with people who filed medical bills bankruptcy over surgery and hospital bills exceeding $100,000. Perhaps maybe Nancy Pelosi’s comment of “we have to pass it, to see what is in” was not prudent. So, now what are we American’s going to do about this looming crisis?
Let’s take the Great Horse Manure Crisis of 1894. In the 19th century, the mode form of transportation was horse and buggy in the large cities like London and New York. By the turn of the 20th century the population in these cities had doubled. London a loan had 11,000 horse draw carriages including “buses” which required 12 horses to pull. Needless to say the horse manure was literally starting to pile up. It was predicted by a Loudon Times reporter that within 50 years there would be over 9 feet of manure covering the London streets. That would have been a major crisis. However, with the invention of the gas powered automobile this crisis never came to pass. By 1912, cars out numbered horses for the first time in public transportation. Horse drawn carriages are now only a novelty. Sometimes our predictions don’t include good ole American ingenuity of innovation. I have faith that some smart business people will solve this issue long before we hit the crisis level. I have no doubt that Politian’s will take credit for it. Therefore, I do believe Obamacare is manure. However, only time will tell about whether Obamacare will work or not.
“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger–but recognize the opportunity.” ― John F. Kennedy
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger and team leader with over 25 years of experience in sales and marketing in the insurance and beverage industries.
Interesting analysis. I believe that the ultimate goal of the politicians is a single payer health care system run by them (the government). They can then control the billions of dollars needed to run the system and they can control the individual citizen. You are overweight pay up, you smoke pay up, you drink soda pay up. It is all about control not for the good of the country. If socialism is so great why are the European economies in the toillet?
We are going to see millions of workers have their hours cut or their health insurance premiums increase dramaticaly. Employers who want to hire that 50th employee won’t do it because of the increased costs. The ripple effects throughout the economy will be staggering. Prices on everything will rise.
Todd, I agree with you about all of the implications of government control of our healthcare system with Obamacare. Most people follow blindly until they feel the pain themselves. If people think it is expensive now, just wait until Uncle Sam runs it awhile.Time will time how this plays out. All in all we Americans are the idiots that keep electing them though. Nobody to blame but ourselves.
Some kind of change to the system was needed and it still is needed. Health care is the only area where the user (us) has no idea what the doctor will charge and what the insurance company will pay and what the discounted price will be and what their actual out of pocket expense will be until we get the Explanation of Benefits. Except for CoPays no one has a clue what the actual charges will be
Gus, that is exactly my point. We desperately need transparency. We the consumer should know what every procedure costs by provider and exactly what will be paid by our insurance policies. Government could have passed this law with burden on the taxpayers. Free market would hold prices in check as they do in almost every industry, expect monopolies and oligopolies. The lobbyists would allow it and our government wants to control it. Logically, Obamacare will not “fix” this these issues. Thank you for sharing!
NO it is creating jobs in the healthcare field and work for insurance agents. another thing that President Obama has improved the economy without the help of the Republicans. Dont forget Bush lead us to a very very damaged economy.
Fridman Insurance
Sudbury Ma 01776
617-872-2066
“manure” is being polite.
Based on the current information, ObamaCare will run out of money by 2016 …. according to the CBO. The initial programs to cover the “unisurable” are or will be out of money by the end of June 2013. Obama requested an ADDITIONAL $440 MILLION in FY2014 for ADVERTISING to promote ObamaCare.
Look for health insurance premiums to increase 30% per year for the next 3 – 5 years …. with diminishing coverages and longer waits for doctors.
There MAY be more work for health insurance premiums ….. BUT …. commissions are projected to DECREASE as the insurance companies try to reduce costs so the premium increases are not astronomical.
Actually the frequency of commissions will be more since millions of people will have to sign up lets say being in great health like me I have no worries but the unhealthy people that were denied now can get healthy or get their health restored I am a proud democrat
Nathaniel, I admire your optimism. However, once insurance carriers are looking to cut costs, agents are the biggest expense. So if it is a law to purchase health insurance or be fined, why do you need agents to sell it?
Can we keep politics out of this. Thank you
Nanette, I beleive I addressed the political statement in the first papragraph. It is not a political blog, but a comparison about government control.
Obamacare is unaffordable expensive donkey manure.
Tim , It looks like you missed the whole intention of healthcare reform. The current system cherry picks who they want to insure and controls the cost of medical care and insurance premiums. Corporate greed, price fixing, double digit premium increases and out of sight healthcare costs have failed the majority of the American people.
With the new law, billions of our hard earned tax dollars will shifted to the health insurance companies in the form of subsidies. Some would call this corporate welfare others capitalism. You decide ?
Medicare for all would be my solution. It’s currently a well oiled machine that Controls of cost of profit ,medications and health care cost that providers and hospitals charge. Now since it is “means tested “everyone chips in their fair share and this creates a level playing field for everyone. It works well and is well funded. My Opinion.
Guaranteed Issue was supposed to be “well funded” under the new law and its already broke…(
My comment was that we should keep “your” political comments out of what is right for your clients. This is not the platform to espouse you beliefs. That’s it. Lets keep it business only
“your beliefs” that’s it
Rich, in theory I see what you are leading to. Problem is we are throwing good money after bad. The profit margin on a health insurance company is actually very low 2%-4% as comapred to other industries that profit 8%-10%. Even though the margins are low it is big bucks. Our government is 17+trillion in debt and climbing. To take on a $10 trillion industry will bankrupt the system. We did experiment with this here in Tennessee back 1994 with Tenncare. Our government by my recollection managed to collect $6 million in premium in the first year and paid $94 million in claims that year. That was it most “profitable” year. Maybe I’m wrong but I’m willing to bet I’m not.
Nanette, with all due respect, I’m in insurance, there is no other single topic as “Business” as Obamacare. Every business I walk into for life products and retirement products the conversations all come back to Obamacare. I am not sure what you sell in the market that is not effected by Obamacare. I assure you my “beliefs”
are based in 20 years of experience in the health insurance industry and I can “see” where this is heading. I truly appreciate both of your comments and I wish you much success!
the sales spin gets bigger
“The rates submitted to Covered California for the 2014 individual market,” the state said in a press release, “ranged from two percent above to 29 percent below the 2013 average premium for small employer plans in California’s most populous regions.”
That’s the sentence that led to all of the triumphant commentary from the left. “This is a home run for consumers in every region of California,” exulted Peter Lee.
Except that Lee was making a misleading comparison. He was comparing apples—the plans that Californians buy today for themselves in a robust individual market—and oranges—the highly regulated plans that small employers purchase for their workers as a group. The difference is critical.”
more enlightening news at
http://www.forbes.com/sites/theapothecary/2013/05/30/rate-shock-in-california-obamacare-to-increase-individual-insurance-premiums-by-64-146/
John, not to mention California is bankrupt as a state finanacially. The hen will come home to roost. Thanks for sharing!
Nathaniel, I hope you are correct as, according to the information I am receiving from colleagues in different insurance companies, that they are getting out of the health insurance market since their pay (commissions) will be taking a huge hit.
As for the “millions” that will have to sign up, there will be ZERO commission on the government exchanges, which is where a large majority of these new members will go ….. since they are on the government payroll (welfare) currently.
Let us know in July or August next year how those commissions are working out for you.
To Your Continued Success
Obama has improved the economy? Are you kidding me? Have you been listening to Mr. Thrill-up-my-leg Chris Mathews
As a Republican but also as an American, I know Obama is destroying everything in our great land, including with Obamacare. We need to educate our citizens.
The REPUBLICANS is a Party of No they have ruined this country and insisting with living in the past is our downfall. Big Cars and big homes is wasteful of energy resources by stealing it for the future generations.
Really sorry you feel that way. By the way, I have a small car and a leased
small home.
Gary
Nathaniel ….. if “Big Cars and big homes is wasteful of energy resources by stealing it for the future generations” then WHY do Pelosi and Reid need 3 SUV caravans to travel ANYWHERE?
The party of NO, as you state, is NO to continued debt WITHOUT cuts. If we the average citizen lived the way OUR government is WE would ALL be in jail …… but that point of view has ZERO to do with this thread.
As a relatively new agent (2 +years) I have spoken with many agents and brokers. They are ALL very concerned about losing their agencies from the lack of income. A number are selling their agencies to get out NOW before the system collapses. If they could see where to make a living with ObamaCare, trust me, they would NOT be getting out of the best income game in the world.
As I stated before ….. get back to us next summer and let us know how great you are doing.
Gentlemen, I contend this is not a political issue. The parties are irrelevant. If it was just political the supreme court would have struck Obamacare down. This is a government out of control! They love it when WE AMERICANS fight between the parties. That way it is not citizens against it’s government which it should be. The BIG cars and BIG houses is just fuel for class envy, or racism or anything else they can divide us on. As fluffy and fuzzy as coverage from womb to tomb sounds, we can’t pay for it in the US anymore.All they needed was price transparancy and let the free market correct it. We are throwing the baby out with the bath water with scrapping the entire system. Bill is dead on right, this will not end well for health inurance agents. I hope it lasts until next summer. Thank you all for your comments, they are all much appreciated!
Health care reform did not go far enough! We need single payer!
@Joseph – I disagree, we do not need single payer. We need a transparent, free market system where the user (us the policy holder and recipient of healthcare) knows ALL the information. Right now the system is just a transfer of payments with no one except the insurance companies knowing what’s going on.
We do not need a new government agency that controls and distributes healthcare. Who is going to pay for all that bureaucracy?
Gus, I wholeheartly agree with you. We are too far in debt for this added expense. However, Joseph I believe you will get your wish before Obama leaves office. I believe Obamacares poor designs were on purpose so the government can take over our entire healthcare system, then God help us all. I appreciate your comments with all sincerity!
I like Timothy Franklin’s assesment: Obamacare is ‘unaffordable and expensive donkey manure’. It is a bill 2700 pages long that apparently was never read or understood by anyone in Congress and is now followed by 75,000 pages of rules and processes and 100 agency and committee structures. Premiums because of Obamacare are through the roof and expected to double again during the months ahead. Studies and analyses from the Congressional udget Office, independent actuaries, state insurance commissioners, health plans, benefit consultants and others come to the SAME conclusion: It is a MONSTROCITY that will eventually collapse under its own weight…and a ‘TRAINWRECK’ waiting to happen. There are other comparatively low cost solutions to our healthcare delima.
The Great Horse Manure Crisis of 2014…a 2000 page bill, 20,000 pages of procedures, 150,000+/- medical codes (many duplicates or contradictory), The piles are getting higher and higher. Federal (central) Navigators, not state licensed insurance agents, will tell citizens (slaves) what health coverage they can have; and thus, limit tax payers (not all citizens and non citizens) to what coverage they can have so long as they can pay their “fair share” for their healthcare coverage premiums. THE ODOR IS GETTING STRONGER!
Nat, I know you will never tire covering for President Obama. Liberals never do. The Liberal media have carried this presidents water for so long they are in it just as deep as the president. When the government says you must buy a product…that’s tyranny. If you really were interested in seeing Healthcare premiums lowered, lets start by deporting the 11M+ illegal immigrants, letting the free markets work, allowing people to freely choice their provider and their doctor. Do you honestly trust the IRS to enforce your healthcare?? Obamacare is already having negative consequences. I don’t need the IRS penalizing me for not buying a product the government says is best for me. That decision should be left for individuals and families. BTW, if you feel you don’t pay enough in taxes, did you know the IRS takes donations?? Make checks payable to Internal Revenue Service.
obamacare is worse than manure. It will be the biggest clusterfoxtrot in history. (You civilians can ask a veteran or service member what a clusterfoxtrot is). Our healthcare system will be totally FUBAR.
Joseph- The only “single payer” I want for my healthcare is ME!
So where does this leave a new agent selling health coverage in 2014
Robert, up the proverbial creek without a paddle. In all reality I don’t know what is in the future for health insurance agents. I’m glad I am a P & C agent and don’t write a lot of health insurance.
Better learn to sell life and annuity products until that becomes the next “crisis” and another government take over is needed.
I think this answers the question for this thread ………
Good news: the rest of the media are finally catching up to what I told you here three years ago… The story next…Remember President Obama’s promise that if you like your health care plan, you’d get to keep it under Obamacare? Well, as I said years ago: no, you won’t. The A.P. reports this week – yes, THIS week – that people with bare-bones coverage may soon be receiving letters from their insurers telling them their policies are being canceled. That’s because catastrophic policies – the less comprehensive policies that healthy people with limited incomes buy – well, they don’t include all the bells and whistles, from pregnancy to drug rehab, that Washington now mandates everyone to have, whether they need them or not. Obamacare defenders hope that once Americans see how much better their new policy is, they won’t complain. But one health care industry consultant doubts that. He said imagine what you’d say if an airline told you had no choice but to pay $300 for a plane ticket, but hey, it’s first class, so what are you complaining about? I’d say, please…don’t give Washington any more bright ideas.
For more of the Huckabee Report visit MikeHuckabee.com.
Tim –
I tweeted your article – its right on. This law is, in my humble opinion, the crack opening the door to a real reform – now, how to work in this environment, that is the question….
Katherine, thank you so much for the Tweet! You are correct, how will the agents fit in to this new model only time will tell. Keep up your great work, you are fighting the “good fight” for health insurance agents everywhere!
The way I see it. Obomacare is a great theory. Provide healthcare to those who cannot afford it. Provide coverage for those who previously could not be insured.
Thats where it ends. Insurance is about risk. Traditionally the insured was betting he was going to get sick. And the insurer was betting he wasn’t. With Obomacare the insurance companies are being forced to take a 180 degree turn. They now will have a considerable higher risk pool, with the addition of millions of people previously not on the books, have to provide services and procedures that many people don’t necessarily need or want.
Higher risk, more people receiving services covered by the Government (taxpayers), more services being offered (orthodontics, childcare, etc.), will lead to higher premiums ( for those who pay), slower provider services, and another bureaucratic log jam
It is like telling all auto insurance companies they will now have to replace transmissions, air conditioners, and a wash and wax. But you can’t charge more for the premium. This doesn’t make economic sense does it..
Hey Tim, as we draw closer to the dead line it looks like we will end up right back where we started, 45% insured and the rest . . . scrambling around trying to find affordable coverage. I’ll be glad when the jusr comes in on this. Are you still with FF?
Hey Phil, yes still have FF and some other things. We are growing pretty well, 78 agents in 27 states so far. I agree with your comments, this isn’t going to “fix’ the problem, which is by design. Hope you are doing well, my friend!
I agree with most of the comments about Obamacare. I believe it will collapse under it’s own weight. However, until then this will be a boon for insurance agents who can adapt. Not every agent will survive. The agents who can most quickly learn the new regulations, new products, and new ways of connecting with buyers and selling, will be able to make more money than ever before.
I am not saying this in support of Obamacare by any means. I’m just giving an analysis of the facts.
Agents will be able to make commissions selling plans to 30 million people that have never been in the health insurance market, no declines, no chargebacks, and the taxpayers will pay their premiums. In addition to that, everybody with individual major medical now, except those who have had their plans since before 2010, will have to shop for new insurance in the next 18 months, AND millions of Americans who have group insurance through their employers will lose their coverage because of this law and will have to enter the individual market as well, We have never before seen, or are we likely to ever again see, a market opportunity like we are about to see.
Don’t get caught up in thinking that all we’ll be able to sell are the low commission (on high premium) metallic plans. The more profitable market will actually be in providing alternatives to the metallic plans, for the millions of people who won’t be getting heavily subsidized for their insurance, and don’t want to pay the high premiums for Obamacare. Many of those folks won’t even be subject to a penalty for not buying qualified coverage (if the cost of a bronze plan is above 8% of their adjusted gross income), or will decide that paying the penalty is far less expensive. Many others will choose not to buy the metallic plans just on principle. These folks will be trying to piece together coverage that lets them sleep at night, with premiums that let them eat during the day. What they’ll be buying is high commission indemnity and short term medical plans, along with accident, critical illness, and other supplements.
That’s where we’re going to be focused. Obamacare will be bad for America, but it will be great for the health insurance agents who have the training, products, tools, and resources to take advantage of the new opportunities that always go along with change.
Anyone who wants to know more about what we’re doing to prepare for Obamacare, can contact me privately. mlewin@ahcpsales.com
‘Right On’ Martin! As a 20-year career health agent, I WOULD like to hear more and will contact you privately. Thanks
Martin and Karl, I admire your optimism, although I don’t believe it will be the case, I hope it is!
Curtis, I love your analogy, you are exactly right. It is a financial failure looking for a place to happen and that place is right here in the US. Thank you for sharing that!
Great commentary – the first comment by Todd Smith sums it up as I would. How any insurance agent can support Obamacare is beyond me (different from profiting from it). It goes against the basic principle of insurance of insuring for the unexpected. By eliminating preexisting condition exclusions for example premiums can only go one direction – up. Of course this was their plan all along – to make insurance unaffordable for the common person who then will demand a government solution. The media ignores Obama’s campaign promise that Obamacare would reduce premiums $2000 year – an obvious lie at the time to anybody with any common sense – a mathematical impossibility in the real world. My family plan has increased roughly 30% and I foresee no end to the increases over the next few years – their plan all along. Yes – a large pile of manure indeed.
New information from the State of Ohio concerning 2014 health insurance rates.
http://insurance.ohio.gov/Newsroom/Pages/06062013ACAProposedRates.aspx
Ouch! Thank you for sharing that OH DOI link Bill, that is a true eye opener. It seems to be what we insurance veterans knew all along, premiums go up and commissions go down.
If you have to ask, you are obviously an idiot!
Tim I am going to take the risk( to agree with you )of many rebuttals attacking your comments as political, even though you stated it is not about parties. I would like to see new solutions mankind is very capable of creating new inventions, and usually when a crisis exists that is when it happens. Yes if we would look out for all not just our own needs it will benefit all.
Tim
The additional fix to our health care problem is tort reform. This obviously would limit suits and settlements bringing down doctors and hospitals cost
Al H
Janette, thank you for your agreement. I detect that was a little tough and I appreciate and agree with your sentiment.
Alan. you make a very valid point. However, since most of our government is made up of lawyers it is doubtful tort reform will ever pass. They don’t usually eat their own. Doctors are still imperfect humans and they will make mistakes. Unfortunately, their mistakes can be fatal. Thank you both for sharing.
Tim:
Yes I agree that there lawyers all through our federal legislature, but they are suppose to represent the American people not themselves. Hopefully, we can change this in future elections.
Alan, I admire your optimism, but unfortunately we are the same ones that keep reelecting them.
Hi Tim while I agree HCR is a bit scary . I am trying to find some good aspects and one of them is allowing smaller groups to receive a compensation for covering their employees 35% this year and up to 50 % next year
Bob,
There are certainly some good aspects in Obamacare. The no more preexisting conditions clause for individuals is good. It still doesn’t change the fact that it is poorly put together and a country that is $18 trillion in debt can’t afford this $10 trillion albatross. I still believe the government will screw it up and some smart guys in the private sector will “fix” it. Thank you for sharing, that is a very good point.
Obamacare has two folds to it, as with anything else their is good and bad. The bad thing is the cost of insurance is rising, the good people with major illnesses, or diseases can now have the opportunity to have health insurance.
Some would say these people can apply for a job with group benefits, well that would be correct about five years ago. Now the employment market is comprises of more independent sales professionals then ever before. People are working from home, have an income and assets and can not apply for any state assistance.
The other part of Medical coverage that could have been fixed, instead of this entire overhaul, would have been Tort Reform. A big cause of increases in medical expenses has been more unnecessary tests Dr’s do to avoid lawsuits. If we fix that, Medical costs go down. But that didn’t happen because this country is ruled by Attorneys. The Health Ins industry already covers the uninsurable with their own programs, we fixed that. We didn’t need the Gov’t to mess it all up as they are planning to do. You are RIGHT, Obamacare is manure, it needs to shoveled away. It will be the demise of our economy.
Thank you Dante and Judith for sharing your thoughts on Obamacare. The bottomline is there is good and bad in the law, but don’t lose sight that it is designed to fail and move towards a single payer system. Judith you are correct, it is not about “fixing” it, it is about controlling it.