Episode Summary
This podcast episode tackles the common objections insurance agents have to selling Affordable Care Act (ACA) health plans and debunks myths with facts demonstrating why ACA should be part of an agent's portfolio.
One of the top reasons agents avoid ACA is the belief there is no money to be made compared to products like Medicare Advantage. However, the host breaks down the math to show how ACA commissions for a family can exceed Medicare. With Medicare Advantage, an agent may get a one-time commission of $600 for enrolling a client, then $25 per month ongoing. With ACA's per member per month model, a family of four at $25 per member totals $100 monthly or $1200 annually. ACA provides full family coverage beyond just the individual.
Another myth is the ACA market lacks stability. But the host points out major carriers like UnitedHealthcare re-entering the market signals the opposite. ACA premiums have also stabilized, indicating a maturing market. Group health plans may face more uncertainty in coming years as expectations shift around employer-provided coverage.
Many agents also find ACA enrollment too complicated, involving manual subsidy calculations. However, technology like HealthSherpa has automated this process. Agents simply enter income, household details, and location. The complex math is handled in the background, often more simply than in Medicare plans. Getting ACA certified takes just an hour online.
Some believe the ACA market is saturated, but the reality is more Americans than ever qualify for subsidies, creating opportunity. Depending on the circumstances, there are now year-round enrollment options. Market share is readily available for agents willing to seek it out.
Rather than distracting from Medicare sales, the host argues ACA enhances it. Clients enrolled now become Medicare leads when they turn 65. Agents can provide full family service by keeping spouses/dependents on ACA plans. ACA and Medicare enrollment periods also align well for turnkey lead generation.
In summary, selling ACA plans has become much more profitable and practical in recent years thanks to the maturation of the market and enrollment technology. For agents who understand the landscape, adding ACA coverage can benefit their business by diversifying their books, increasing commissions, and building an ongoing pipeline. The myths around ACA plans are outdated - for forward-thinking agents, ACA represents a real growth opportunity.
Timestamps
(0:00:03) - Today we are calling these five reasons not to sell ACA
(0:00:56) - The number one reason not to sell ACA is you hear this all the time
(0:04:46) - The number one reason not to sell ACA is it's not a stable market
(0:11:39) - Number four, reason not to sell ECA. It's kind of oversaturated
(0:13:21) - Building relationships early can build an evergreen pipeline for your Medicare business
(0:16:22) - Five reasons not to sell ACA that we hear
(0:17:12) - This OEP goes all the way till January so it's still not too late
