1 Year Guarantee

[ABC]

I just found out about UHC dropping the 1 year rate guarantee.

Right now, I have at least one carrier that is keeping the rate guarantee.

I am considering and using the companies that are offering the rate guarantee. That could be a very good selling point.

Anyone have thoughts on this topic?

 

[taterpeeler]

I may be wrong but is their not a provision in all contracts that the contract is valid unless it violates a federal law? or state law?

a policy written after 3/23/2010 is not grandfathered and is subject to obamacare and I could see how that could void out the rate lock.

 

[CHUMPS FROM OXFORD]

Guarantee is important but I inform customer and let them decide.

GET OUT OF INDY HEALTH!!!!

On a side note...hard to believe but, of course,so much hinges (perhaps) on what happens Tuesday. Regardless of your position, it is exciting!

WebNanny was not used in this post
WebSteelersD was used in this post (Sunday)

 

[ABC]

If the contract has the 1 year rate guarantee it would be difficult for the carrier to go to the DOI and break that contract.

I could be wrong.

 

[Yagents]

Regardless of what they are telling you, other carriers will soon follow suit after the elections when we know more about Obamacare staying in place. Every carrier will be raising rates on 1/1/14, or there numbers will blow up.

 

[somarco]

Tony, I assume you are referring to group health plans.

It is my understanding that plans effective in 2013 should have until the renewal to come in to compliance with 2014 guidelines. If that is so the 12 month rate lock can be a selling point.

Group plans, especially those for 50+ lives, probably won't be impacted as much as smaller group plans. The biggest impact will be the rate adjustment for plans that do not meet the new lower deductible + copay requirements.

Whether or not you can impress enough employers with the idea of (presumably) paying more for a 12 month rate lock is another question.

We tried this several years ago in the stop loss market and it went nowhere.

 

[Cory]

Alot will be known soon enough and they certainly can increase rates any time they want. As we know cost of healthcare is going up for so many reasons... this could easily be spun into a rider to charge customers more money to "guarantee" the rate for X months for insurance companies to make more money. We'll see...

 

[ABC]

No, this is on Individual plans. I still write a handful a month. I have been happy with UHC but I think there should be a 1 year rate guarantee. I have one Mutual Company that is going to keep the guarantee.

My Goal is to try to limit all the in house work I am going to have in 1-1-2014. For example if I writ 100 Individual policies next year and they all get hammered in Jan. Now I am going to have to spend time getting them taken care of on top of group block and existing Individual block.

The one year rate guarantee could save the clients a good chunk of money too.

Tony, I assume you are referring to group health plans.

It is my understanding that plans effective in 2013 should have until the renewal to come in to compliance with 2014 guidelines. If that is so the 12 month rate lock can be a selling point.

Group plans, especially those for 50+ lives, probably won't be impacted as much as smaller group plans. The biggest impact will be the rate adjustment for plans that do not meet the new lower deductible + copay requirements.

Whether or not you can impress enough employers with the idea of (presumably) paying more for a 12 month rate lock is another question.

We tried this several years ago in the stop loss market and it went nowhere.

 

[Cory]

For those that are stopping the one year rate guarantee it's a huge opportunity for the others (who will over it) to market themselves and perhaps gain more business... if done right.

 

[ABC]

I put some thought into this.

This will be not be the deciding factor on which plan I sell.
I will tell the client about this issue but I am stick with price and underwriting.

As mentioned this is a good selling point.