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Our agency owner just returned from a leadership meeting where he spoke to several of the health insurance company executives "off the record" after official functions ended for the day.
I can't put on this forum some of the language they used to describe their thoughts of how the government is handling this Health Reform, but I'm sure you can imagine their anger.
The industry feels blindsided by how this administration suddenly on July 14th of this year, unveiled regulations that require all group and individual health insurance policies with an effective date of September 23rd or later, to begin covering HUNDREDS of "preventive" tests, screenings and counselings, with NO Cost-Sharing whatsoever on the part of the insured.
Ref: Rules For Free Preventive Services Requirement Announced - Kaiser Health News
They knew that a few of the most critical wellness tests would be mandated for Sept 23rd, but didn't expect that everything from depression to obesity to smoking cessation would be thrown into the mix.
Ref: Preventive Care Mandates Could Lead to Out-of-Control Costs and Unaffordable Health Insurance Premiums - Business - Press Releases - msnbc.com
On a more positive note.. While the vast majority of health insurance carriers will be cutting commissions effective January 1, 2011, they also expect price increases. The way it was explained to me today, the companies understand the importance of agents and will be re-working their accounting practices so that higher premiums will equate to almost the same dollar commissions, even though the commission percentage is lower. They're working on ways to do this and stay within the (80% Individual / 85% Group) MLR requirement that goes into effect in 2011. It's already being assumed that agent commissions will NOT be included in the cost of providing medical care to insureds.
These next 6 months will be full of fireworks on several landscapes.
-AC
I can't put on this forum some of the language they used to describe their thoughts of how the government is handling this Health Reform, but I'm sure you can imagine their anger.
The industry feels blindsided by how this administration suddenly on July 14th of this year, unveiled regulations that require all group and individual health insurance policies with an effective date of September 23rd or later, to begin covering HUNDREDS of "preventive" tests, screenings and counselings, with NO Cost-Sharing whatsoever on the part of the insured.
Ref: Rules For Free Preventive Services Requirement Announced - Kaiser Health News
They knew that a few of the most critical wellness tests would be mandated for Sept 23rd, but didn't expect that everything from depression to obesity to smoking cessation would be thrown into the mix.
Ref: Preventive Care Mandates Could Lead to Out-of-Control Costs and Unaffordable Health Insurance Premiums - Business - Press Releases - msnbc.com
On a more positive note.. While the vast majority of health insurance carriers will be cutting commissions effective January 1, 2011, they also expect price increases. The way it was explained to me today, the companies understand the importance of agents and will be re-working their accounting practices so that higher premiums will equate to almost the same dollar commissions, even though the commission percentage is lower. They're working on ways to do this and stay within the (80% Individual / 85% Group) MLR requirement that goes into effect in 2011. It's already being assumed that agent commissions will NOT be included in the cost of providing medical care to insureds.
These next 6 months will be full of fireworks on several landscapes.
-AC