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Non-Tech : pamc
PAMC 45.73-0.7%Oct 30 5:00 PM EST
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To: Steven M. Kaplan who wrote (487)10/24/1999 10:58:00 AM
From: Don Hand   of 570
 
To me the key part of the WSJ article centers around this:
"It says it aims to cut the normal agent commission in half, though its price breaks vary from state to state."

We have had conflicting comments from analysts on how Healthaxis
will make a profit and if an insurance company will snub its
agents.

I would think the major names would have to sign up regardless if
it insults their agents simply to compete. A company like Fortis
could alter the landscape by becoming a major player without agents.
I am not familiar on why blue cross is broken by state but a national presence on the internet could alter their names.

This could be a slow roll out with Qtr-to-Qtr losses until the effort
kicks in. I would not mind spending 2 million on a super bowl ad
a la monster.com . After that; the major players will panic.
And entry start up costs will be very expensive.
I hope Healthaxis has tuned their processes to roll a insurance
quickly.
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