Numerous studies have shown that choosing the right health insurance coverage is a daunting task for many consumers, especially those who have never had coverage. Consumers need advice from informed health insurance agents who can help them understand the various health insurance options, evaluate the benefits, enroll in a plan and file a claim. Advisors also provide personalized advice to their clients throughout the life of their policies.
This is why the National Association of Insurance and Financial Advisors strongly opposes recent decisions to reduce or eliminate commission payments to advisors on health insurance policies sold in the individual market. Decisions to cease commission payments on individual market policies sold after a certain date are ostensibly made to manage the costs of administering some health plans. These decisions are ill-advised, short-sighted and unfair.
Ultimately, the elimination of commissions will cause great harm to consumers, as it will adversely impact consumer access to professionally licensed and trained financial advisors at a crucial time when selecting and purchasing health insurance coverage is more complex than ever. Consumers will be left without the assistance of an experienced, licensed, trusted, and knowledgeable advisor to help them through the process of selecting and purchasing the right health insurance plan.
A survey of NAIFA members who have sold health plans in the individual market shows some advisors will be forced to discontinue service to their clients if they are not fairly compensated for the hours of work required to assist consumers in choosing the right health insurance plan to fit their needs.