Covered California Agency Contracts Expected for 2017

Posted: July 25, 2016

by John Hansen

The State Exchange is expected to start offering Covered California agency contracts in 2017. Since the beginning of Health Care Reform, the California Health Exchange has been offering agent contracts, but as of yet they have not offered brokerages the ability to have their own contract or to have an agency online account with Covered California. The State Health Exchange is expected to offer agency contracts within the next 12 months, possibly even in time for Open Enrollment 2017.

The California Exchange has received many complaints from larger Covered California agencies regarding this issue. This makes it difficult for larger brokerages to make sure the agency (and not the individual agent) gets credit for the sales from their agents. Also, it leave agencies open to the risk of an employee leaving and taking a block of business with them.

The Problem for Larger Agencies

Not having Covered California agency contracts creates a hug dilemma for larger brokerages when they can’t have individual sales tied to the agency. It becomes a risk when they hire and pay brokers to write agency business and the clients are under the agent’s name instead of under the name of the company. An agent could leave and take the commissions with them.

Also, this makes it difficult for an agency when multiple agents have to service a client. All of the clients with the brokerage are in various agent portals. There’s no way to search for clients by agency, so brokers may have to search each agent’s portal to find a client. This can be a huge waste of time. 

Covered California Agency Contracts Will Really Help

This will mean less trouble tracking company clientele. It will make it easier to service clients. There will be one account for all agency business, so it will be easier for agents to find clients and help them with their health insurance needs. Also, if an agent leaves the business, the clients will remain with the agency.