Insurance agents voice their concern regarding exchange system
Minnesota is making progress on establishing its own health insurance exchange, but the state’s plans have sparked concerns amongst insurance agents. Independent insurance agents have come together to make their concerns heard by state officials. The majority of the state’s health insurance is sold by these independent agents, who are worried that a health insurance exchange will make deep cuts in their commissions. If these concerns are justified, an insurance exchange could present a serious financial problem for Minnesota agents.
How insurance agents will fit into exchange system is unclear
Health insurance exchanges are required in each state per the Affordable Care Act. While many states have come to support the establishment of these exchanges, independent insurance agents are concerned that they may lead to problems regarding commissions. Minnesota’s Commerce Department has been working to develop the state’s health insurance exchange, but the details of the program have yet to be fleshed out entirely. Insurance agents are now petitioning to agency to let them know how they will be allowed to participate in the state’s health insurance exchange and what effect it will have on their commissions.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Federal government encouraging compensation mechanisms
When the Affordable Care Act was passed in 2010, the majority of insurance agents were unable to receive compensation by selling plans through an exchange system. This has changed over the past two years, with the federal government encouraging a compensation system designed specifically for insurance agents. Minnesota’s Commerce Department claims to be developing a compensation mechanism that will provide agents with commissions based upon the plans that they sell to consumers.
Details concerning exchange expected to be revealed in 2013
Minnesota is required to submit its plans for its health insurance exchange to the federal Department of Health and Human Services by the end of 2013. Agents are likely to get a glimpse of what will be in store for them when t he exchange plans are submitted. By 2014, the state will have a fully operational health insurance exchange, which state officials claim will be equipped with adequate compensation mechanisms to ensure agents are adequately represented.