Wondering what happened to your broker?

A recent article actually puts a number on what all of us in the brokerage community have known for years.

“Agents and brokers suffered a loss of $300 million in commissions in 2012 as a direct result of the medical loss ratio provision in the Affordable Care Act, a Tuesday report from the Commonwealth Fund reveals.

The provision—which has been in effect since 2011—requires private insurers to spend at least 80% in the individual market and 85% in the group market of premium dollars on direct medical costs. Those that do not comply with the ratio must issue rebates to consumers.

To meet that requirement, health insurers reduced profits and spending on brokers’ fees, marketing and administrative efforts to the tune of $1.4 billion. Broker expenses, which amount to roughly 3% of premiums, fell by nearly $300 million in individual, small and large group markets.”


This amounts to about a 40% cut in revenue for servicing your account in 3 years.  Still wondering why your broker is shortstaffed, slow to respond, or gone altogether?  The brokers that did not adapt early with the use of virtual assistants, technology and a changed viewpoint have, or are, failing.