Thanks for having the ‘courage’ to say what a lot of us are thinking. I read every comment and the conversation between you and Todd Carpenter. I would like to see a change in the message that NAR sends to the public, most people don’t even understand that there is a difference between a REALTOR and a licensed sales associate – shouldn’t they back up and realize that they need to start with the basics? The public doesn’t get it…

REALTORS® Core Health Insurance Overview

Here NAR addresses the current medical insurance landscape including issues and barriers many real estate professionals encounter in gaining medical insurance, as well as NAR’s lobbying efforts towards making comprehensive medical insurance more accessible to small businesses and independent contractors. Finally, NAR introduces a new affordable and guaranteed-acceptance limited health insurance program developed exclusively for NAR members. The program, called REALTORS® Core Health Insurance, is available today.

The Current Health Insurance Problem
Despite a long-standing tradition of employer-provided health insurance, today more than 46 million individuals in our nation have no health insurance. More than half of these Americans are self-employed, own small firms, or work for small businesses.

The Struggles are Greater for the Self-Employed
In most states, the self-employed are relegated to the state’s individual insurance market, where applicants can be turned down for medical reasons, such as pre-existing conditions, and there are few limitations placed on the premiums companies can charge (often making premiums unaffordable). Real estate professionals have found it even more challenging, evidenced by the fact that today nearly 30 percent of NAR’s membership – more than one in four REALTORS® – have no health insurance coverage.

Why Isn’t a Group Major Medical Insurance Program for Members Offered Through NAR?
In an effort to find a solution, many members turn to NAR hoping that the Association offers a national group major medical insurance plan. Although group health insurance plans are available to corporations for their employees, “A”-rated insurance companies have been reluctant to offer such plans on a national scale to associations for their members, particularly when the members are independent contractors and participation in a plan is voluntary. This is because of the complexity and administrative burden of offering a group insurance program that meets the differing requirements of all 50 states.

NAR’s Ongoing Efforts in Washington
NAR continues its lobbying efforts to encourage Congress to pass small business health care legislation that would allow independent contractors and small businesses to band together to receive more affordable major medical health insurance. Should legislation be adopted, NAR will be actively involved in discussions with the nations’ insurers to work out a comprehensive health insurance coverage package that they could provide to REALTORS® nationwide. Track the issue of Small Business Health Insurance >

What Options Can NAR Offer Members Today?
To address the issues of those who simply do not qualify for major medical insurance due to pre-existing conditions or the high cost of premiums, NAR has developed, in partnership with an A.M. Best “A”-rated insurance company, the REALTORS® Core Health Insurance Program (RCHIP). RCHIP offers affordable, guaranteed-acceptance limited medical insurance plans for NAR members under the age of 65.

REALTORS® Core Health Insurance Is Not Major Medical Insurance
It is important to understand the difference between major medical and limited medical insurance. Ideally everyone would have “major medical” insurance, but many people simply do not qualify due to pre-existing conditions, or because they cannot afford the high costs. “Limited” provides the guarantee of affordable insurance but limits its coverage to everyday illnesses and accidents. In addition, the maximum benefits paid in each medical situation are capped. The table below offers a side-by-side comparison of the general differences between major medical and limited medical.

Important: This program includes plan options that offer limited indemnity benefits which are not intended to cover all medical expenses and should not be considered as comprehensive health insurance coverage.

Key Features of Limited Medical Insurance (What the REALTORS® Core Health Insurance Program IS)

* Good Front-End Coverage
o Little or no deductible or co-pays
o 100 percent first-dollar coverage for most benefits (no deductible)
o Provides basic medical coverage for everyday health issues
* No Underwriting
o A guaranteed issue program – no eligible member will be turned down
o Next-day coverage available
o No medical questions or exams required
o Pre-existing conditions accepted following a 12-month waiting period
* Rates
o Plans are not age-rated – rates are the same for everyone based on state
o Rates based on group demographics
o Inexpensive and affordable for many people

Key Features of Major Medical (What the REALTORS® Core Health Insurance Program IS NOT)

* Comprehensive Coverage, High Limits
o Typically $1 million to unlimited maximum coverage
o Great for major illness and accidents
* Typically High Out-of-Pocket Costs
o Deductibles
o Co-insurance
o Co-pay
* Extensive Underwriting to Qualify
o Underwriting time can take up to 60 days
o Not available to many people with certain pre-existing conditions
* Rates
o Rates are determined by age, sex, location, and other demographic characteristics
o Typically costly even for healthy individuals

NOTE: Like all insurance, the policy itself contains exclusions and limitations which are important for you to read and understand to determine if the policy fits your specific needs.

Also, we’re talking about ~$88,000,000 split ~1,100,000 ways. Several agents have told me how much they appreciate the deal we worked out with Lowes and I know the NAR discount for Budget Rent-A-Car is great. But I bet 900,000 members could care less about stuff like this. We serve a lot of different interests. How much of your $80 do you really want allocated to helping you save a dollar or two on a coupon book, or 5% on a printer?

I’m not sure where some guy at a title company got his information, so I can’t really speak to the commissions argument. But I don’t understand why his account of what NAR said conflicts with what you want to charge.

As far as the Credit Union goes, NAR is a not for profit. The streams of revenue we generate are designed to keep membership dues low, and provide enhanced services in down years. For instance, in most years REALTOR® Magazine more than pays for itself. These streams also help NAR build reserves so they can launch all these programs in a year when members are really struggling. NAR saved for a rainy day, and now it’s raining.

– I just came away from the Right Tools, Right Now page. NAR Research is good stuff. No doubt about it. However, a lot of the of stuff that’s on the page (at least, today) is something I can pick up through my Broker, title company or coaching guru du jour.

– I love the idea of the Credit Union. I’m a rather smallish depositor in the Credit Union. I’ll concede this is a nice innovation but….it really is another profit center (at least, I hope it will be) for the NAR. It still has a few bugs in it such as a simple, easy way to transfer funds from my bank to the Credit Union. I know it’s still new, though.

– Discounts: perhaps price gouging is slightly hyperbolic but it ain’t no great discount either. I only used FedEx, Dell and the Entertainment Book programs. FedEx – negligible, at best. Dell – phone sales people that upsell like crazy and discounts you can find elsewhere. The Entertainment Book – It was actually a dollar cheaper before it became associated with the NAR. Perhaps the dollar increase is inflation and has nothing to do with the NAR.

– HouseLogic: the jury is still out on that. I just looked at that site, too. Lots of good information for homesowners. Lost of great opportunity for the NAR and their partners to aggregate lots of good data about home owners and home buyers. I don’t see the benefit to Realtors It’s not fully implemented and I wonder why the NAR wants all this great info? To sell it back to us? There was a rep from LPS talking about this in an oblique way to the MRIS subscriber advisory council and my impression was that they were, indeed, going to sell it back to us in the form of “pretty” IDX.

– Perhaps you’re right about trade association health insurance being a legislative matter. As you mention, most of our dues goes to legislative and don’t forget RPAC. Time to get serious.

– Commissions: this is purely anecdotal but as I was sitting in a 90 minute seminar being put on by a title company about the new RESPA rules. I could have sworn I heard, “HUD went to NAR to find out what was the one thing they wanted on the new HUD-1 and NAR says to eliminate reference to commissions as percentages.” Whether or not this is a good thing as far as the HUD-1 goes is open for discussion. It sure seems odd to me. I may be one of those wacko conspiracy guys that sees any NAR input about anything about commissions as a sign…and not a good one.

BTW, aren’t we really talking about $80,000,000 … not just $80

PS thanks for taking time to respond on your day off. Happy Holidays to you as well.