Go back to the coverage about eBay Live! in Anaheim last June and what's the one issue that got more exposure than any other? That's right, eBay's plan to offer health insurance coverage to its PowerSeller contingent. While many were looking forward to the announcement promised for this month about further details and actual enrollment in the plan, eBay has done a sudden back-peddle, announcing on their PowerSeller site the issue is simply too complex and needs more time for research and negotiations with potential vendors. eBay originally named Physicians Mutual Insurance as the health insurance provider.

"eBay PowerSellers are composed of individuals and businesses scattered throughout the country, and thus, are not a traditional group as defined by healthcare providers," the unsigned announcement said. "Our work will continue through the fall and we will be ready to start taking applications for enrollment in January." PowerSellers have now been defined as those who sell $1000 or more on eBay in any given month, with various levels and enhanced privileges as gross sales figures increase.

The anticipated coverage is still ambitious. "eBay’s initial PowerSeller healthcare offering will provide a range of solutions tailored to meet individual needs and budgets. Initial offerings will include program options such as basic healthcare, major medical and supplemental insurance programs, as well as disability and prescription discounts."

Meg Whitman's initial announcement of health care coverage was not embraced by all who might qualify for coverage. Frances Neale, an eBay seller, would qualify for the program-if she chose to become a PowerSeller. "I know that the customer support team for PowerSellers is supposedly better,...but I get canned answers fast enough and everything that does matter to me at customer service works fine, like Safe Harbor and the team at S.A. Basic."

Even so, Neale sees several areas of interest. When the insurance program is finally in place "then there would be no reason for anyone to not have medical insurance. It would be simple enough to generate $1,000 in sales on eBay, especially if it is a family enterprise, and that would generate enough money to pay for a good policy." She also believes the insurance program "could move lots and lots of people into insurance that are not now sellers on eBay and could be a masterstroke in marketing and getting people into the eBay arena. And it can potentially give eBay clout in a highly political and volatile arena. Medical insurance is a huge issue for many people, businesses and not to mention the politicians."

The delay in implementation doesn't bother her at all. "I am just fine with a postponement as long as what it means is that eBay is striving to get it right. Their track record has been to roll something out that is incomplete, not well thought through or just dumb, and then tweak it until it's right, a costly and frustrating process for sellers and buyers. Checkout comes to mind, a process which still is a mess. So if they are going to be operating in an area as important as medical insurance, I hope they get it right the first time."

But are eBay users really willing to put all their insurance eggs into one eBay basket? Many questions are still unanswered. What happens if a PowerSeller has their insurance through eBay and subsequently loses their PowerSeller status? Will rates be determined by PowerSeller level? What will happen if the insurance carrier decides the arrangement isn't profitable enough and ups its rates or opts out of the deal altogether?

"I'm not sure that eBay users would feel comfortable buying into an eBay health plan. Many auction sellers have a love-hate relationship with eBay, and some are reluctant to be even more dependent on the company," said Ina Steiner, Editor of AuctionBytes.com, publisher of AuctionBytes Newsflash. "eBay may do better to work a deal with a group already offering health insurance to independent business people, like the Chamber of Commerce or the National Association of the Self Employed. That way, eBay could give its members something of value and get revenue for marketing such a program. They could stick to their knitting and not have to deal with the administration of a health plan."