Blue Cross Blue Shield of Florida (Florida Blue) has begun opening retail health insurance "stores" around the state. Florida Blue has historically and continues to rely on intermediary agents, brokers and wholesalers for their sales. In fact, 95% of their new business come through these non-employee channels.

The stores are designed to make it easier for individuals and small business owners to purchase health insurance plans. They also provide convenient, face-to-face answers to complicated questions about health insurance benefits, value options and financial protection. When Florida Blue realized that customers want to work with professionals rather than trying to do it themselves on the internet, the stores seemed like a great new distribution channel. But, Florida Blue also respects and needs its brokers and the value that brokers and agents add -- face-to-face consultation -- and fear that opening the stores might be perceived as direct competition and therefore alienate them.

• 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?