How The Affordable Care Act Affects Insurance Agents
We all know that the Affordable Care Act (ACA, a.k.a. Obamacare) has changed the health insurance landscape in America. People who were previously uninsured now have coverage. Other people lost plans they’d had for decades and had to conform to the new ACA model.
Clearly, things changed for the average American. For the health insurance agent, those changes were tenfold. Here’s a quick look at the effects of the Affordable Care Act on the American health insurance agent.
- Cons: Because it’s easier for individuals to purchase their coverage directly through Healthcare.gov, the need for individual agents seemingly decreases. Furthermore, all too many people are willing to take out their frustration over the confusion surrounding the ACA on the person closest to them, and that is often their agent. Finally, there is a provision in the ACA that says insurance companies have to spend 80 cents of every dollar they earn in premiums on health care in small group and individual markets, which could slash some broker’s commissions.
- Pros: Although confusion about ACA regulation does have many consumers frustrated, it presents a golden opportunity to insurance agents who can step up and guide their clients through the process of purchasing coverage. Also, because the federal government is informing citizens of the potential of scamming, they’re driving business away from con artists and to accredited and licensed agents. Finally, because every American is now legally required to have health insurance, the demand for their product—and consequently the opportunity for sales—has significantly increased for agents.
Clearly, a lot has shifted with health care in America. With these changes, are you sure you’re getting the best coverage at the best price? To work with a health insurance expert who can keep you covered—and in line with ACA regulation—contact Remland Insurance in Orange, California today.