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John C. Goodman

Dr. John C. Goodman, who is dubbed “The Father of the Health Savings Account,” provided some blunt but needed insight on the rabid push for health care reform in the recent issue of Health Insurance Underwriter magazine.

Goodman, who played a key role in defeating Bill and Hillary Clinton’s push for a single-payer system in the early 1990′s and is currently president and CEO of the National Center for Policy Analysis, doesn’t mince words in an interview published in HIU, the house journal of  the National Association of Health Underwriters (NAHU).

Health care reform is “going to wipe out health underwriters,” Goodman is quoted as saying in the article. “There will be no more brokers and no more agents once an exchange is set up. Under any sort of exchange that’s being envisioned by Congress or the White House, there will be no brokers.”

In case you didn’t get that message, he said it again, in not too subtle language, later in the interview: “There will be no more role for the agent.”

To read the entire interview, click this link (wait a few seconds for page to load).

Goodman’s interview is not appropriate reading for health insurance agents who are faint of heart, or who prefer to bury their heads in the sand and pretend that their livelihood is not in danger.

6 Responses

1. Mitch Says:
   October 17th, 2009 at 8:45 pm

   Fortunately, it’s an untrue statement. All one has to do is look at the model in other countries that have both a public health system and private insurance to see that it’s false. I hate fear mongering of this type.

2. Bill Smith Says:
   October 20th, 2009 at 11:01 am

   This article hits the mark right on. The Pres. plan taxes companies giving good health care to employees by 40%. The public option is ridiculous. Private companies can not compete with a public option that can tax and then use taxes to reduce THEIR cost. This is a terrible plan and a smoke and mirrors attempt to put private insurers, drug sales people etc out of business. We need to stop wearing blinders and get a new administration quick.
   This is not fear mongering this is truth.

3. Bill Cundiff Says:
   October 20th, 2009 at 12:23 pm

   I agree completely with Mitch. I spend a good bit of time in the UK on business and the agent/broker system for health care is hale and hearty. I am curious as to Dr. Goodman’s basis for such an all encompassing statement. Would he share the facts upon which he draws this conclusion?

   It’s my opinion that his objective is to defeat any form of health care/health care insurance reform as he did in the 90′s and will marshall any support he can for his agenda. Obviously, by creating an atmosphere of fear that agents and brokers will lose their livelihood he is hoping to gain their considerable clout on Capital Hill.

4. Jeff DeMatteo Says:
   October 20th, 2009 at 12:33 pm

   As someone who has been involved and fully understands the Legislative aspect of our business, I wholeheartedly agree with Mr. Goodman’s assessment. Even if their is a role for the Broker/Agent under the ObamaCare plan, it won’t provide for anyone to make a reasonable income, thus forcing us out of the business altogether. Let’s face it… it’s a matter of simple economics and when Private insurance companies are forced to cut costs, that means commissions too. We have a huge target on our backs and the Obama Administration (as well as all Democratically controlled Congress’ for that matter)has us in their sights. Shouldn’t be a surprise to anyone when it happens either, the proof is already out there and for anyone who thinks otherwise is simply just not paying attention to what is going on with the current legislation.

5. Allan Michael Says:
   October 29th, 2009 at 2:38 pm

   Interesting. Aren’t both predictions based on pure speculation? I’ve been keeping my ear to tracks for any referrence to the role brokers will or will not play under current proposals. So far I’ve heard absolutely nothing. Nothing encouraging anyhow. All we have is this vague notion of an exchange- a brand new bureaucracy that will do our jobs for twice the cost and 1/2 as efficient. Sure. It could work out for us. It could just as easily dissolve the industry. I’m grabbing my life vest and loading up the boat in grim anticipation of the latter. I’ll hope for the best in the meantime.

6. Pat Knowd Says:
   November 9th, 2009 at 3:57 pm

   I agree that this certainly is a possibility but not a foregone conclusion. If you are making 100% of your income from health insurance commissions I would be seriously concerned though. It may be 4 years or so before it happened but Obama care will eventually wipe out the industry and health insurance agent commissions will be a thing of the past.

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