The outlines of the new “exchanges,” or Web-based health insurance supermarkets, seem to be emerging from the fog of legislation and regulation that has blanketed the U.S. benefits community over the past three years.
The Center for Consumer Information and Insurance Oversight (CCIIO) — the agency setting up the “federally facilitated exchanges” (FFEs) — says it hopes 250,000 producers will register to sell FFE plans.
The builders of the Massachusetts small-group exchange — who were operating in a state with a successful individual exchange program — laughed off the Tale of the Failed HIPC. In 2009, they offered brokers a small-group commission rate of just 2.5 percent of premiums. Commercial insurers were paying commissions of about 3.5 to 4.5 percent of premiums.
In the future, the exchanges might shape producer compensation.