by Guest » Thu Aug 30, 2012 07:26 am
I hear that the ACA will bring about abrupt changes, and also introduce the insurance exchanges. If I want to buy a new policy or renew an old one, how will the exchanges be of help? What about the brokers then or for those form of assistance which we have been used to?
Posted: Fri Aug 31, 2012 04:24 am Post Subject:
how will the exchanges be of help? What about the brokers then or for those form of assistance which we have been used to?
Each state is responsible for establishing its own exchange(s). State laws and regulations will necessarily vary. Theoretically, the exchanges are supposed to command greater bargaining power with the insurance companies, and force premium concessions.
That is unlikely to happen. Premiums under the PPACA have no place to go but up in order for insurance companies to stay in business.
Agents will still receive commissions for placing business in the exchange, but no one knows what it will be.
In CA, the exchange laws have been written in a way that insurance companies must offer certain plans within the exchange if they want to be in a position to write new business outside the exchanges. Insurers that choose not to participate in the exchanges at all will be even more limited in the kinds of plans they may offer.
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