What impact will the Aetna-Humana merger have?
July 10, 2015 3:58 AM
Overview
Aetnas recent acquisition of Humana sparked plenty of debate about what this means for the industry and what the future holds for benefit brokers. Here are some reactions EBA readers had this week:
[Image: Fotolia]
[Image: Fotolia]
Good purchase
Thank goodness somebody bought Humana, they lost their way. Non sales people trying to make sales.
Posted by Jeffrey K
[Image: Fotolia]
Posted by Jeffrey K
[Image: Fotolia]
Costs will increase
The step will ultimately increase premium, deductibles, co-pays and out-of-pocket maximums for consumers and changes in networks to lower cost providers so insurance risk is transferred to them and you as the consumer.
Posted by Michael S
[Image: Fotolia]
Posted by Michael S
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Buy stock
The brokers solution may be to buy stock in these carriers since they seem to (be) working mostly for the stockholders and not the insureds or employers.
Posted by Keith
[Image: Fotolia]
Posted by Keith
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All agents must rethink their business model
With Aetna/Coventry ceasing commissions on any group less than 100 lives, plus cutting individual commissions to a bare minimum, wonder how long before they implement the same with Humana. Considering that Humana was writing a lions share of the business, all agents must rethink their business model. Going to fees is being forced on us all, if we can even remain in business.
Posted by John A
[Image: Fotolia]
Posted by John A
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Brokers are already changing their tactics
The brokers we work with are already re-inventing their business model away from commissioned-based product placement to fee-based support services. The advent of the Affordable Care Act requirements actually makes this transition much easier.
Posted by Si N
[Image: Fotolia]
Posted by Si N
[Image: Fotolia]
Fee-based model wont work in individual market
I can see fee-based for group because most group agents go well beyond the health insurance required services. Fee-based will not work under existing conditions in the individual market. Individuals will not pay a fee as long as they can (do it yourself) or go to a navigator, regardless of the errors they make. Picking the wrong plan is still the insurance company's fault.
Posted by Ellis B
[Image: Fotolia]
Posted by Ellis B
[Image: Fotolia]
Read EBAs coverage of the merger
Why the Aetna-Humana merger is a lesson for brokers
Why the Aetna-Humana deal signals the need for a fee-based model
Aetnas Humana deal pressures Cigna to agree on Anthem offer
Aetna agrees to buy Humana for $37B in cash, stock
[Image: Fotolia]
Why the Aetna-Humana deal signals the need for a fee-based model
Aetnas Humana deal pressures Cigna to agree on Anthem offer
Aetna agrees to buy Humana for $37B in cash, stock
[Image: Fotolia]
