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Blue Cross Blue Shield of Florida (Florida Blue) has opened several retail healt

ID: 433558 • Letter: B

Question

Blue Cross Blue Shield of Florida (Florida Blue) has opened several retail health insurance "stores" around the state. Florida Blue has historically and continues to rely intermediaries (agents, brokers, wholesalers who are NOT employed by Florida Blue) for their sales. Infact, 95%of their sale are through th sechannels. The stores are ed to be a convenient place for individuals and small business owners to buy Ith insurance plans, and they also provide convenient, face-to-face answers to plicated questions about health insurance benefits. People want to work with professionals, rather than struggling tarough these complex decisions by themselves on the internet. But that is also the value that brokers and agents add face-to-face consultation. Did Florida Blue do the right thing opening these stores at the risk of upsetting their traditional intermediary channel partners? Why or why not? How seriously should Florida Blue consider the threat of a broker backlash due to the stores? What could Florida Blue do to reduce the backlash from their brokers who may be threatened by BCBSF opening its own store? F6 F8 10

Explanation / Answer

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