Everybody knows that medical insurance protection has altered over the past numerous years, however there are still many individuals who do not yet realize the complete impact of the Affordable Care Act, also referred to as Obamacare.
One of the industries that have been significantly affected, is the health insurance industry. Ever since Henry Kaiser executed health insurance for his employees in the 40s and Equitable Life offered the first group health insurance policy about the exact same time, we have been covered for the costs of seeing the doctor and going to the hospital by personal insurance business.
One huge problem with that system was that people who had illness that were deemed uninsurable, were not able to buy adequate coverage, and lots of could not buy any at all due to the fact that they did not certify. However, lots of employees have actually been covered through their companies, and millions more through private medical insurance policies purchased directly through medical insurance agents or medical insurance agencies.
There was never ever any real effort in the insurance industry to build profession companies specializing exclusively in health insurance. Rather, the capability to market medical insurance for the specific market, and group medical insurance came from existing life insurance firms, and existing property and casualty representatives.
These agencies included individuals who had, or who might develop the relationships and contacts with individuals, professionals, and business owners to whom the health insurance strategies existed.
Even with a fairly concentrated effort to reach those people who required coverage, by the time The Affordable Medical-Intl Care Act entered into being, there were still around 30 million Americans who continued to be uninsured for medical insurance.
Now, the whole landscape for the distribution of health insurance has altered. Now, instead of medical insurance being delivered entirely by private enterprise, it is managed and only policies that are authorized by the Federal Government are allowed to be sold to the consumer.
At first it appeared that the licensed agents were being edged out by Obamacare, due to the fact that the companies who sold the bulk of the health insurance in America were needed to raise their reserves which backstopped possible future claims, to a level that however removed representative commissions. This brought their commissions down to a level where many representatives and firms were eliminated of company. There was just no other way that a company or an agent who focused on medical insurance alone, could move forward with that particular economic design.
Now it is apparent that agents remain in fact a primary driving force in the sale and application of the AFA, as proven in California where 60 percent of the enrollees in the state exchange were registered by representatives over the efforts of the employed federal government navigators and call center personnel.
Now, the insurance coverage companies, companies and agents have formed new unions, where cooperation and strength in numbers have actually served to create new principles. These cooperative efforts by agencies who deal with marketplace registrations along with ancillary health insurance that can cover the very high deductibles that Obamacare offers are proving to be really effective with great results.