Blue Cross of Illinois - 2016 News of Interest

[AllenChicago]

May 2, 2016

RE: Blue Cross to stop accepting credit cards for insurance payments - Chicago Tribune

As we saw in last week's News for Producers newsletter, Blue Cross will stop accepting Credit Cards for premium payments on June 1, 2016.

What percentage of your clients pay their BCBS-IL premium with a Credit Card? For me, it's less than 1%. I now have most (+90%) on monthly bill and write a check.

 

[SamIam]

What about debit cards?

 

[AllenChicago]

What about debit cards?

I honestly don't know, Sam. So many budget cuts that BCBS-IL hasn't even updated their "Forms of Payment" page.

Ref: Insurance Payment Options | Blue Cross and Blue Shield of Illinois

 

[kgmom219]

I honestly don't know, Sam. So many budget cuts that BCBS-IL hasn't even updated their "Forms of Payment" page.

Ref: Insurance Payment Options | Blue Cross and Blue Shield of Illinois

Assuming its same as TX, debit cards are still allowed.

I saw this and did a giant SO WHAT yawn.

Another TX agent, who shall remain anonymous, was really annoyed.

They are cutting wherever they can. And I'm sure its a small percentage of the payments, so they are expecting minimal impact.

 

[AllenChicago]

Assuming its same as TX, debit cards are still allowed.

I saw this and did a giant SO WHAT yawn.

Another TX agent, who shall remain anonymous, was really annoyed.

They are cutting wherever they can. And I'm sure its a small percentage of the payments, so they are expecting minimal impact.

YEP...still accepting debit cards. Here's a copy/paste from the Blue Access for Producers section of Health Insurance Illinois | Blue Cross and Blue Shield of Illinois..

"Effective 6/1/16, credit cards will no longer be accepted for making ongoing/recurring premium payments.

There are still many convenient options for members to make premium payments including check, money order, bank draft, cash and debit card. For details, see payment option information online or refer members to our payment flier.

Credit cards will continue to be accepted ONLY for the one time, initial binder payment."

If things are so bad that Blue Cross has to scrape the bottom of the barrel to save money like this, we can kiss 2017 IFP commissions good-bye.

But, I have my doubts that Blue Cross's stated reason for no longer allowing credit card payments is the REAL reason. I think the company is deeply crunching numbers to see where their losses are originating. The low income, lowest Out-of-Pocket (CSR) people, may be paying their $70 premium with a credit card. This is how you get rid of some of them.

 

[SamIam]

I agree Allen, I think they are looking for ways to weed out the The low income, lowest Out-of-Pocket (CSR) people. That was the first thing that came to my mind.

 

[AllenChicago]

June 1, 2016

It really doesn't matter now, but did you realize that Blue Cross paid a baby's first monthly premium? I didn't.

Excerpt from our June 1st Producer Newsletter...

"BCBSIL No Longer Covering Newborn Premium Offset as of June 1, 2016
As part of our continuous effort to improve processes and control costs, the first premium for a newborn will be assessed from the birth date and prorated accordingly. In the past, Blue Cross and Blue Shield of Illinois would fund a newborn’s premium for the entire birth month, regardless of the date of birth. The effective date for a newborn continues to begin on the day the baby is born."

ac

 

[AllenChicago]

June 3, 2016

The Illinois Dept of Insurance says that it will not release the Blue Cross (or any other company's) 2017 rate change requests until August 1st.

But as you can see from this article, the Blue Cross sister companies in Texas and Oklahoma are requesting huge increases for 2017.

Link: Blue Cross premium hikes in Texas, Oklahoma could mean Illinois sticker shock - Chicago Tribune

ac

 

[steven2244]

Wow! +50% on prem - man!

& I bet they're going to give us something like $12PPPM

Glad I'm busy building new lines. The memory of last yr's OE makes me shudder - and to do it for peanuts... would rather be on a beach somewhere

Anywhere!

 

[AllenChicago]

Blue Cross may pay 0% commission for 2017 I.F.P. enrollments. They're already dismantling some of the agent support structure on the I.T. side, and perhaps on the personnel side as well.