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Adapting to Change—Why Agents Should Expand into the ACA Marketplace

The world of health insurance has changed dramatically over the past five years. Since the passage of the Affordable Care Act (ACA) in 2010, shoppers have more rights, benefits, and protections than ever before and millions of Americans have gained coverage. To keep selling successfully, agents must embrace these changes and adapt their business plans. Those who are only selling Medicare Advantage, Part D, and Medicare Supplement plans would be wise to expand their business into a more rapidly-growing market.

There is nothing wrong with selling insurance to the senior market. According to a 2012 U.S. News article, approximately 10,000 people will turn 65 every day for the next 17 years, so there should be a continual supply of prospective clients. But why only sell to a market of 30 million people when you could increase your client base and sell to more than 250 million?

Agents who are not selling insurance to the under-65 market should consider doing so. Over the past five years, this market has become a goldmine for potential sales. Let’s explore why.

All Americans Are Now Required to Have Health Insurance

On March 23, 2010, the ACA was signed into law by President Barack Obama. This law aimed to change the world of health insurance, and it did. Among many things, it prohibited insurance providers from dropping someone’s coverage if they got sick or made a mistake on their application; it banned companies from discriminating based on pre-existing conditions or gender; and it let children stay on their parents’ plans until they turned 26 years old. Perhaps most significantly, it also required all Americans to have health insurance coverage.

The requirement of health insurance makes ACA products perfect for your portfolio. Similar to how people must have homeowners insurance if they have a mortgage, they must now have health insurance if they are a U.S. citizen. If a person does not maintain minimum essential insurance coverage, and does not have an exemption, he or she faces a tax penalty for each full month they go without coverage. With such a high product demand and strong incentive to find coverage, there's no doubt the under-65 crowd is looking to buy.

Expect to Thrive Selling Under-65

FOR AGENT USE ONLY | Ritter Insurance Marketing | 2600 Commerce Drive | Harrisburg, PA 17110 | 800-769-1847

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The Quality, Accessibility, and Affordability of Health Insurance Has Improved

According to a 2014 report on BusinessInsider.com, approximately 44 million people, or about 17 percent of Americans, lacked minimum health coverage in 2006. Nine years later, 16.9 million of those people have gained health coverage, according to a 2015 report on Forbes.com. What changed?

Since the ACA was passed in 2010, the quality, accessibility, and affordability of health insurance has improved. Need proof? Health plans must now cover many preventive services and immunizations. Health insurers can no longer discriminate against someone based on their gender or health. And 85 percent of consumers who get coverage receive subsidies to help cut the costs of their plans.

Because of changes like these, shoppers have more options when it comes to purchasing coverage. In general, under-65 health insurance has become a more attractive – and more likely – purchase for individuals and their families. Not only can more people access and afford health insurance, but they are also more likely to deem it worthy enough to spend money on.

ACA Products Can Be Sold Year-Round

Wouldn't you feel at ease knowing that you wouldn’t have to face another dry spell withoutsales? The senior market only has a few special events during which people can enroll in, or switch, plans outside of the Annual Enrollment Period. However, the under-65 market has numerous special events during which people can enroll in, or switch, plans outside of the Open Enrollment Period.

Special Enrollment Periods cover individuals with canceled group plans, loss of Medicaid, involuntary loss of coverage, or those who are turning 26. Another great sales plus is being able to offer under-65 products to one spouse while showing Medicare plans to the other. Agents selling to the under-65 crowd can rest easy knowing there will be a steady supply of potential clients throughout the year.

There Are Very Few Rules for Selling ACA Insurance

Rules can be hard to keep track of, confusing to decipher, and exhausting to follow. Fortunately, agents who sell under-65 insurance don’t have to worry about being weighed down by vexing regulations. Unlike the marketing guidelines for Medicare-related products, the marketing guidelines for ACA products are more relaxed—agents can talk to anyone at any time; there is no scope of appointment; and there are no carrier certifications needed. The only requirement is that agents complete one federal and state marketplace certification in order to enroll people on the exchange.

Insurance Is Confusing—Shoppers Need Help

Let’s face it. The world of health insurance can be a pretty complicated and confusing place. One study, led by Carnegie Mellon University’s George Loewenstein and published in 2013, examined consumers’ understanding (or lack thereof) of four basic health insurance concepts—deductible, copay, co-insurance, and out-of-pocket maximum. After surveying 202 American adults who had private health insurance and were the primary or shared decision maker for their own or their families' health care, Lowenstein found that only 14 percent of participants correctly understood all four concepts.

Consumers need agents’ help when trying to find coverage. Although shopping and completing things online is often touted as easier, shopping for health insurance and enrolling in a health plan online can be complicated and challenging. Many people desire to work with agents who can help them slice through the thick insurance jargon, and aid them in choosing plans based on their health and cost-specific needs. Who better to assist them than a dedicated and experienced agent like you?

There’s the Potential to Make More Money

If agents expand their business to the under-65 market, they have the potential to make more money. It’s as simple as that. By increasing the size of their market, agents increase the number of their potential clients. By adding ACA products to their portfolios, agents gain the opportunity to cross-sell additional coverage options, such as supplemental policies (short-term coverage), hospital indemnity plans, cancer plans, life insurance, and dental insurance to their clients. Sell under-65 insurance and get ready to watch your profit per presentation rise!

Selling ACA Insurance Is Fast and Easy with the Right Tools

The days of having to wait 30 to 40 minutes or longer to enroll a client in an ACA product on HealthCare.gov are over. Selling ACA products is fast and easy with Ritter Insurance Marketing and their expert Under 65 team. Besides having very competitive carriers across the country, Ritter also gives agents access to several online tools that better assist them in serving their ACA clients.

Take eBroker Software for example. A subsidiary of Ritter, eBroker Software gives agents a tool to quote and enroll clients with a live connection to HealthCare.gov. This enhanced quote engine includes a subsidy calculator and a side-by-side comparison tool. Another useful tool,PlanCompass Pro, helps your clients keep the doctors they know and love. A simple search using its extensive database provides accurate, complete and accessible healthcare provider data in just minutes. Get a quote for those plans and be on your way.

Five years ago, the ACA reformed the world of health insurance, changing the game for agents. Those agents who have not already adapted to these changes are missing out on an incredible opportunity to assist millions of additional people and substantially increase their commissions. With the improvements to health insurance being fairly recent and proving stable over the past few years, agents are sure to thrive selling to those under 65.

FOR AGENT USE ONLY | Ritter Insurance Marketing | 2600 Commerce Drive | Harrisburg, PA 17110 | 800-769-1847

RITTER INSURANCE MARKETING