Eighty percent of insurance agents who sell health coverage are hurting big-time because of a single piece of federal legislation:
The Patient Protection and Affordable Care Act, otherwise known as Obamacare.
A recent survey by the National Association of Insurance and Financial Advisors (NAIFA) of 378 members who sell health insurance shows 80% report decreased commissions in the past two years.
Reason: The medical loss ratio (MLR) in Obamacare requires insurers to spend at least 80% of individual and small health insurance premiums, and 85% of large group policies, on purely medical or patient-specific expenses.
Some in the insurance agency warned before Congress passed Obamacare that insurers would take a hit, as well as insured customers (shocker there). Sure enough, insurance premiums spiked in 2009 and they haven’t stopped climbing.
Nearly a quarter of brokers and agents say they’ve reduced customer service because of the decline in revenue, and another 29% say they will reduce customer service further if commissions don’t improve.
What do you think: Should Obamacare be repealed? Let us know below.