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Small Business Employee Benefits and HR Blog

California Health Insurance Exchange - How Insurance Agents Can Benefit

With over 2 million California residents estimated to enroll in a health plan through the California Health Insurance Exchange by 2017, many insurance professionals are curious about the role of agents and brokers.California Insurance Agents

The California Health Insurance Exchange, called Covered California, recently provided details for brokers and agents. Here is a summary of the opportunity for agents in California including how commissions will work, and training details for agents.

Opportunity for Agents in the California Health Insurance Exchange

Covered California offers these statistics on how many California residents may purchase policies through the exchange:

  • 5.3 million Californians are currently uninsured or purchase health insurance on their own

  • Of these, 2.6 million may qualify for subsidies through Covered California

  • The 2.7 million who do not qualify for subsidies may benefit from guaranteed-issue coverage and can enroll in coverage on or off the exchange

How Agents will Get Paid through the California Health Insurance Exchange

According to Covered California, the commission structure will be different on the individual health insurance exchange and the small business SHOP exchange.

For the individual health insurance exchange:

  • Agents to be paid directly from carriers

  • Commissions will be the same on the exchange, as off the exchange

Click here for a list of carriers planning to offer individual health plans on the California Health Insurance Exchange.

For the small business SHOP exchange:

  • Agents will be paid by the exchange, Covered California

  • According to Covered California, they will be market competitive commissions 

According to Covered California, agents will be able to embed an exchange badge on their website and link to the exchange website. Links will be provided to trained and certified agents.

Training & Certification for Agents

The following training and certification details have been provided by Covered California:

  • Registration begins August 19, 2013

  • In-person training will begin early September

  • Online training will begin in November

  • Agents will need to pass an exam at the end of training

Source: Covered California July 17 Agent Webinar.

 

What questions do you have about the role of agents and brokers in the California Health Insurance Exchange? Let us know in the comments below.