Post by Logan on Mar 7, 2016 4:30:59 GMT -6
Consumers could be losers as insurers cut brokers' commissions
When Blue Cross and Blue Shield of Illinois canceled his family's health plan last year, Tony Schor could have gone online to Get Covered Illinois, the state's insurance shopping mall, to buy a new policy.
But Schor, a small-business owner who lives in Highland Park, turned to his insurance broker.
"There was not a chance in heck that I was going to navigate this by myself," said Schor. "I rely on a professional who is up to date about rules and regulations that are constantly changing in the insurance industry."
But such assistance to consumers like Schor who don't have employer-sponsored medical insurance may be in jeopardy. At least two health insurers in Illinois have either reduced or eliminated commissions this year to agents and brokers on new sales of exchange-based coverage. Blue Cross, the state's largest carrier, also recently announced it would ax payments to agents on individual and family plans that take effect April 1.
Read more: www.chicagotribune.com/business/ct-insurance-broker-commissions-0306-biz-20160306-story.html
When Blue Cross and Blue Shield of Illinois canceled his family's health plan last year, Tony Schor could have gone online to Get Covered Illinois, the state's insurance shopping mall, to buy a new policy.
But Schor, a small-business owner who lives in Highland Park, turned to his insurance broker.
"There was not a chance in heck that I was going to navigate this by myself," said Schor. "I rely on a professional who is up to date about rules and regulations that are constantly changing in the insurance industry."
But such assistance to consumers like Schor who don't have employer-sponsored medical insurance may be in jeopardy. At least two health insurers in Illinois have either reduced or eliminated commissions this year to agents and brokers on new sales of exchange-based coverage. Blue Cross, the state's largest carrier, also recently announced it would ax payments to agents on individual and family plans that take effect April 1.
Read more: www.chicagotribune.com/business/ct-insurance-broker-commissions-0306-biz-20160306-story.html