Recently, we’ve been exploring the role of General Agents and addressing some of the common misconceptions that people often have about them. There’s no question that working with a General Agent (GA) can be extremely beneficial for insurance brokers. However, not all GAs are created equal.

There are different types of arrangements out there and not every organization that represents itself as a GA meets the necessary criteria. When looking for a GA to work with, it’s important to look for a “true” GA.  

Many of you are familiar with the reinsurance fees that were charged to health insurance plans from 2014 to 2016, but you may not be as familiar with the risk adjustment program. The risk adjustment program was authorized under the Affordable Care Act (ACA). This permanent program is intended to protect against adverse selection and risk selection in the individual and small group markets (inside and outside of the Exchanges).

The Tax Cuts and Jobs Act signed into law last year wiped out the federal penalty for not having health insurance (a.k.a. the Individual Mandate) starting in 2019. Some state officials are concerned that the elimination of the penalty could destabilize their local insurance markets, and they have responded with their own Individual Mandate requirements.