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Life Health > Health Insurance Web broker list shrinks again

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Fewer Web broker entities are connecting their health insurance distribution pipes to computers. had connections with 57 Web broker entities on Sept. 15, according to the Centers for Medicare & Medicaid Services (CMS).

The number of connections was down from 62 in May, and it was down 34 percent, from an all-time high of 82, in March.

The drop could be a sign that top-level health insurance distributors are less interested in the Affordable Care Act exchange system, or that CMS is being tougher on would-be plan distributors. and other ACA exchange programs are getting ready to start their fourth open annual enrollment period Nov. 1. The sales season for 2017 individual health coverage is set to end Jan. 31. 

Related: Web broker list shrinks

ACA drafters created the exchange system in an effort to make the individual health insurance market more efficient, by giving people an easy way to shop for coverage.

Originally, ACA drafters assumed most states would run their own exchange programs. The U.S. Department of Health and Human Services, the parent of CMS, set up to provide exchange enrollment and policy administration services for residents of states that were unwilling or unable to handle the job themselves. For 2017, will handle individual exchange plan enrollment for individuals and families in 39 states.

A typical Web broker entity connects with to feed plan sales information into its own Web-based insurance supermarket, or to rent its plan pipes to retail agents and brokers.

Although the number of companies on the CMS Web broker entity list is smaller than it was in March, all of the big companies that were on the November 2015 Web broker entity list are on the latest list. managers also post a database that lists agent and broker registration information. The 2017 plan-year producer registration numbers look strong. had certified a total of 39,692 2017 exchange plan producers by Oct. 6, including 30,126 producers who can sell only individual plans, 202 producers who can sell only small-group plans, and  9,364 producers who can sell both individual and small-group plans.

The total is down from 48,182 2015 plan-year producers registered on Oct. 6, 2014, but it’s up from the 26,928 2016 plan-year producers registered on Oct. 6, 2015.

Related: Web broker list grows 10%

What the health Web brokers are seeing

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