Will National Health Reform Limit Health Insurance Agents To Selling Supplemental GAP Insurance?
Posted on August 24th, 2010Employee Benefits Consultant anticipates “Single Payer” scenario and increased sales of Supplemental “GAP” Insurance policies. ..just like Medicare.
PRLog (Press Release) – Aug 13, 2010 – Detroit, Michigan August 13, 2010
Dick Chelten, owner of Michigan-based Chelten Benefits Group, predicts National Health Reform will end up operating looking like Medicare.
“Many experts anticipate scores of Health Insurance Companies to exit the market by 2014, given the new government restrictions on profits Health Insurance carriers will be permitted to earn. Also, creation of Health Insurance Exchanges, new public “portals” where individuals will be able to go to purchase health insurance outside the normal workplace are expected will reduce potential health insurance buyers from the marketplace”
, says Chelten.
Vague outlines of how Health Insurance Exchanges will operate haven’t appeared to include Independent Health Insurance Agents in their model.
Chelten, who provides marketing, sales and product consulting to Health Insurance Agents across the country, feels that National Health reform will probably end up looking like the “other” National Health plan, Medicare. “Let’s face it, by and large, seniors love Medicare, they are the nation’s biggest health care users and the industry’s pickiest consumers. If the Medicare model is a favorite with seniors, it’s a good bet that National Health Reform for the rest of us will end up looking like Medicare.”
Medicare offers a government provided “core” benefit to seniors, then allows them to purchase supplemental insurance products to fill in whatever “gaps” Medicare doesn’t cover. While Insurance Agents are not involved with the sale of Medicare coverage, they currently are allowed to sell Medicare “GAP” policies to seniors. Chelten predicts the same sales opportunity of agents when National Health Reform rolls out fully in 2014.
“Currently, in my consulting practice, I am recommending Agents get their Employer Groups to get on board with “National Health Reform” type coverage today: coverage with high deductibles plus sell Supplemental GAP insurance to fill in the holes from the large deductibles.” Chelten believes there are great benefits for Employers plus great opportunities for Agents by getting in ahead of the curve.
Typically, we are seeing Employers saving $500-$1,000 annually for every employee they cover ,employees now receiving 1st dollar insurance coverage, and Agents positioning themselves as experts in worksite insurance products, an arena everyone expects to grow over the next 10 years.”