ACA Has Positive Effect on Health Insurance Sales

Half of surveyed insurance execs think health care reform has had positive impact on sales

The Patient Protection and Affordable Care Act (ACA) (P.L. 111-148) has had a “very positive” (7 percent) or “positive” (43 percent) effect on voluntary health insurance sales, according to insurance executives set forth in the Voluntary/Worksite Marketing: An Executive Perspective report, from Eastbridge Consulting Group. Eastbridge adds that carriers with higher voluntary sales in 2014 had more positive responses about the impact of the ACA than did carriers with lower sales numbers. Thirty-nine carriers were unsure of the ACA’s impact, and only 11 percent said that the ACA’s impact had been negative.

Private exchanges. When asked to estimate the impact of private exchanges on both their current voluntary sales efforts and sales efforts five years from now, just under 40 percent of executives responding to the survey said that private exchanges are currently “very important” or “important.” However, 54 percent predicted that private exchanges will be “more important” in the next five years, and 39 percent thought they would be “a little more important.” Eastbridge points out that none of the executives responding to the survey thought that the importance of private exchanges would remain static or decline over the next five years.

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How broker roles are expected to change. Executives were also asked how they expected the role of broker to change in the next five years, in light of the ACA and its associated health exchange environment. “Fewer in-person enrollments,” “more consultative role with the employer,” “lowering of commissions,” and “decreased interaction with the employees,” were the top four responses.

The Eastbridge report has been conducted every two years since 2003, and it summarizes responses from 28 key executives.

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