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What do insurers do now? and why would it change because of ACA? The federal government does not collect a commission on commissions.
ACA makes the goverment the agent and gets 2.5% commission to do so. So it is way different from the current model where the agent is a person and can be charged back for bad sales.
You would think so... however... Let's say that BCBS charges 800 per month for the coverage.
John Doe pays his 400 for November.
The government pays their 400 part for his November charge.
John Doe doesn't pay in December.
The government does...
ACA makes the goverment the agent and gets 2.5% commission to do so. So it is way different from the current model where the agent is a person and can be charged back for bad sales.
Do you have a link to this? I'm interested in learning more.
So the government gets no commission, and is charging the same fee that brokers charge?
From your link:
"Still, e-brokers have at least one competitive disadvantage: Insurance companies pay a commission on every policy brokers sell for them. They'll pay no commission on policies sold in the new online government marketplaces.
The federally-run marketplaces will assess a 3.5 percent fee on every policy they sell, but policies sold in private marketplaces have to pay that, too, in addition to whatever sales commission they negotiate."
Location: Just transplanted to FL from the N GA mountains
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Quote:
Originally Posted by Ponderosa
It's 90 days, but the insurer will cut off bennies after 30. Insurers must pay during the 30 day period and can pend for the remaining 60 days. This grace period applies only to policies that are paid, in part, with tax subsidies.
Okay... so if I read this correctly...hypothetically...
John Doe gets 60 days of coverage for a 30 day payment.
The government pays coverage for him for 3 months? (90 days)
Assuming once again that there is no waiting period for coverage and it goes into effect immediately... this leaves John Doe free to once again pay his monthly premium since he can't be turned down for insurance due to pre-existing conditions, his coverage has to include certain minimum amount of said coverage, and is based upon his income, he can reapply then after the 60 days correct?
I'm wondering how many people are going to be going on and coming off at the drop of a hat?
That still brings me back to the issue of charge back. If an independent agent sells a policy and gets the commission, who is liable for payback of the commission if the isured drops the policy?
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