The smaller agencies are having a problem. United Health locked up the major hospitals in contracts. Aetna has done the same.
Now United is cutting commissions to the insurance salespeople.
My friend in work thinks United will lose 1/3 of its business next year. But his wife’s firm that is affected had its first round of lay offs last month.
The hospitals will only serve some insurance policies. Those who do not have United as their insurance will switch agents to get United’s insurance. It covers more doctors and better doctors very often.
The major hospitals under contract with United pay the doctors more so doctors have switched to those hospitals. The bigger better hospitals have been selective about which doctors to hire.
United and Aetna later will cut doctor’s and nurse’s pay along with other technicians.
The doctors need to get the next admin to work against anti trust but that is problematic because the first targets the insurance agents do not earn commissions. Historically they have been paid commissions. That does not mean in any real sense the commissions were justified. The insurance agents just take and lie a lot to get paid.
My friend in work has an insurance start up on the side. I love talking with him but he is crazy into lying to his clients. Makes him an affective salesman.
His main target for sales is Medicare Advantage. That breed of salesman was promising no out of pocket costs for ever.
I suggested he switch to life insurance when I heard his troubles yesterday. He declined. He needs the easy sales. Life insurance takes some thought and numbers. He has weaknesses in that.
He thinks Aetna owned by CVS is in trouble. He is wrong and not informed.
I told him CVS is in trouble not Aetna. CVS and Walgreens have too many stores cannibalizing their business.
We have three CVS and three Walgreen outlets, that is six in total, facing off against each other on one main road within 8 miles of each other. This covers 3 towns that are not area wise big. This is common as the two chains faced off they over built against each other.
Their pharmacies are busy but the general merch is overpriced. Most people avoid shopping them.
I discussed pharmacies with my friend. Told him Costco’s pharmacy is better than CVS/Walgreens. He agreed. I could have added so is Walmart’s.
ADDing,
Turns out United Health and Aetna are both having financial difficulties. He is right. So it is all of them in trouble. Simple searches show this.
Couldn’t happen to a bigger bunch of users. People are having health problems. The users need to take a hike.