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 on intermediaries (agents, brokers, wholesalers) for their sales. In fact, 95% of their sales are through these channels. The stores are designed to provide convenient, face-to-face answers to complicated questions about health insurance benefits, value options and financial protection. People want to work with professionals, not do it 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?