Isn't the "health insurance exchange" what any good insurance agent already does?

[yurbud]

I've never bought health insurance through an agent, but my car insurance agent gives me a menu of choices based on price and how reliable the company is (when I was younger, a cheaper policy looked better than one that would actually pay out if I got in an accident).

Unless these exchanges use mass numbers for collective bargain purposes, don't they just duplicate what an insurance agent and even some websites already do?

I'm not necessarily saying it's a bad thing.

It is probably useless and a waste of money, but it's a way to placate the insurance industry and get the public option in some form on the table, and the other stupid crap in the bill will eventually wither away like the insurance companies hopefully will.

[wryter2000]

1. Maybe in some states

But in other states, one company has a virtual monopoly. There are states where one company cover over 90% of the people.

[dflprincess]

9. The insurance agent will push whichever policy pays him the best commission.

another needless expense single payer would eliminate.

Even in states where there is competition it's "amazing" how the quotes all come back with the same prices.

[wryter2000]

10. Funny, huh?

Couldn't be price fixing. They wouldn't do that. :sarcasm:

[lynne]

15. That makes no sense at all. The insurance agent has far more reason to push the least expensive -

- premium because they know you're shopping and a little commission is a lot better than none.

[dflprincess]

18. As I said, the quotes all seem to come back the same

regardless of the company.

[lynne]

19. I'm getting health ins. quotes now for my 22 year old daughter -

- and the premiums vary widely between company and options. Maybe it has to do with what is available in your state.

[dflprincess]

20. That could be and I was looking at (small) group policies as well

Usually agents don't make a percentage on an individual policy and they really don't make much on them at all (though it still adds something to the cost). They generally get paid a flat rate on those and, sometimes, they only make a commission off them when they first sell them and then once a year at renewal.

[rug]

2. Ask her.

After all, she's progressive.

[yurbud]

3. good shot--it looks like Michael Moore just asked her a question

[DrToast]

4. The exchange helps those purchasing insurance individually

It's 3 times regular rates for an individual to buy insurance on their own. And that's assuming they can even get a policy.

The exchange will create a pool of new customers. If the insurance companies want to sell on the exchange, they can't pick and choose who they want.

[JuniperLea]

7. Yep! Collective bargaining...

Like unions do. Bulk buying, like Costco:)

[FrenchieCat]

5. It would shrink the monopolies.......

I know that in California, if you ain't got Kaiser, you've got Blue Cross/Blue Shield or some type of coverage know one else knows about.

Brokers are usually used by businesses, not so much individuals....and normally it is for liability and W/C insurance much more than Health Insurance.

Also I believe that the marketplace approach allows individual pooling in order to reduce the premium prices. Currently only businesses with 5 or more employees really get that kind of advantage.

[DevonRex]

6. No. It's like all the options Federal employees have to choose from.

We have 20 different companies we can choose from and it's a LOT cheaper than if we bought from any insurance agent.

[johnaries]

8. That's the point. What any "good" agent does. Unfortunately,

there aren't very many of those.

The exchange is supposed to allow for collective bargaining, although I'm unclear exactly how that will work.

[liberalpragmatist]

11. It allows collective bargaining because of pooling

Because the whole individual market and small-group market would sign up for the exchange, it would be a large pool, similar to what employer-based plans currently have. Thus the rates that plans offered would be comparable to the rates offered at the largest employers with gold-plated benefits.

Granted, that's still relatively expensive compared to the rest of the world. But it would mean the individual market is VASTLY cheaper, since individual insurance is 3x as expensive as group-market insurance.

[johnaries]

12. Ah, I see. Because they would have to offer the same rate to everyone in the pool

for the same benefits. That makes sense.

I'm lucky enough to be employed by one of the "gold-plated" benefits employers. Still, I have watched my co-pays go up and watched my employer jump through hoops and even cut some of the choices just to be able to continue to offer health benefits. And I am worried about having benefits cut. So although the Exchange may not benefit me directly, I cn certainly where I could still benefit indirectly.

[aveosmth]

13. Response from an Insurance Broker

You are absolutely right...I work for an insurance brokerage that has an online exchange where people can shop the market and choose the best plan for them.

Now, before I continue, I just want to make a couple of clarifications that you may or may not know about my industry.

Insurance agents are captive meaning that they work for one company. They can not sell you anything besides what their company offers.

Insurance brokers work for you the client. Brokers can shop the market to find the best plan.

This applies to all lines of insurance and that is why it is always best to shop with a broker as opposed to an agent. An agent is more likely to sell you a plan that may not fit your needs as their choices are more restricted.

Also, understand that there are knuckleheads in EVERY industry who manipulate and are self-serving. I can tell you though, that with the high level of both federal and state regulation in insurance, these people don't last long in ours.

I have always paid my agents the same no matter what policy is sold so that they will serve the customer in an altruistic manner. There are good people who work in my industry and it is hard sometimes to read some comments on here that would have you believe otherwise.

Also, since rates are filed with the state, there are no discounts to buying health insurance either going directly to the company or buying from a broker. This rumor is 100% false. Brokers may charge a broker fee, but in the individual health insurance world that is virtually non-existent.

One final thing, over 80% of our sales are broker assisted. This is true across the industry, even though our company has spent millions developing an end to end online process (we would be thrilled if more members bought online). Therefore, it may seem as though we are an unnecessary expense, but consumers WANT to speak to someone before they buy health insurance. I am proud of my profession, and know that we serve a very valuable purpose.

[yurbud]

14. ah, so I meant "broker."

[lynne]

16. An "Independent Agent" is always the way to go. They are agents -

- who represent numerous companies and are not held captive by any company so they have more options at their disposal. If you're looking for one, google "Independent Insurance Agents of America".

[MarjorieG]

17. Isn't this joining a pool, like company group rates/bargaining?