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As Democrats on the campaign trail do their best to drum up support for health care reform by touting the benefits that take effect this year, it's easy to forget that the full thrust of the Patient Protection and Affordable Care Act doesn't kick in until 2014. But by then, a few major players in the health care industry might have already experienced a real downside of the massive overhaul, so much so that they may no longer exist.
Insurance agents and brokers and small insurance companies are among those who may have to scramble to stay afloat over the next few years. This is partly by design and partly an unintended consequence of a new law that is so sweeping, it will affect nearly every corner of an industry that accounts for one-sixth of the U.S. economy. (See the top 10 health care reform ads.)
Will Insurance Agents Be First Victims of Health Reform?
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- Public Discussion (6)
I am never happy to see anyone lose their job but as I had to do a number of times when my job was outsourced, or the victim of downsizing or a bad economy or changing technology, they will have to adapt.
- 3 votes
#1 - Thu Aug 26, 2010 3:03 PM EDTAmen luckydog
Hopefully all healthcare insurance companies will be gone. They are not needed. Their profits are an added cost. They are middlemen and a good place to cut cost. They have nothing to do with healthcare. It should just be the patient and provider. My physician gave me a discount because I did not have insurance therefore he did not have to pay someone to file a claim. Why can I not give payment to the physician? Why do I have to pay the insurance companies to do something I can do myself? It is adding the middlemen and their profits in for-profit-healthcare that contributed to the rise in costs. The mandate for healthcare is a concession the current administration made to the GOP and they still voted NO.
- 1 vote
Slightly off topic - Universal Health Care would eliminate thousands upon thousands of insurance jobs. Universal health care would also hugely bring down costs as everyone would share the very same insurance pool - one insurer for all. Is the trade off of thousands of these jobs the right direction? YES Where could they find new jobs, how about those ones being outsourced to the call centers overseas to start. Sorry, am not a fan of insurers, banks, credit card companies, credit bureaus or any company that makes money from using what is our money to begin with.
- 4 votes
#2 - Thu Aug 26, 2010 4:23 PM EDTAgreed. Univeral Healthcare will need employees. They can find new jobs here.
- 2 votes
I'm not sure there are that many independent agents depending on health insurance for commissions. In fact, with direct sales by companies over the Internet, the insurance agent may be an endangered species in general.
Some of the odd twists of the final health care bill rarely get discussed. It may be because most people really don't understand the regulatory structure on insurance.
First, there's probably going to be a fair increase in revenues to the states. Insurance companies don't pay state sales taxes. Instead they pay a premium tax on sales. With mandatory policies expect a nice chunk of new change going to state coffers. In my state, insurance premium taxes are the third largest revenue source following sales tax and individual income tax.
Second, with more adult children eligible to be on parents policies, there may be a decrease in Medicaid funds. Many Medicaid recipients are younger mothers with children. (Though just because they can be on a parent's policy doesn't mean they will opt for that.)
Third, a boon to small businesses. While some have complained that this will cause them to hire fewer workers, it actually gives them a leg up in competing for competent workers who want benefits in addition to salaries, and may also allow some competitive advantages as companies that have been trying to do the right thing and those who always avoided insurance for their workers.
- 1 vote
#3 - Thu Aug 26, 2010 5:36 PM EDTYou're in Easy Mode. If you prefer, you can use XHTML Mode instead. |
