December 2019, a long-term client (20+ years) decided to leave their ACA-compliant Group PPO plan and enroll in another agent's limited benefit plan, despite my warnings. This week, they came back, realizing that pandemics and other unforeseen events really do happen.
How Trump gave insurance companies free rein to sell bad health plans
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He did cure cancer now that they stopped testing for it. No new cases!
- 1,745
What is your solution to the lack of coverage on the next policy term for pre-ex?
My concern with STM, although I have sold it with many warnings to a few healthy clients is that in the situation you describe, if their plan term ends any time other than December 31, and they are in a state where there is no carry over of pre-ex from one STM term to another, they would have to buy a short term plan with no coverage for their now pre-existing condition, and then wait until ACA open enrollment with no coverage for the serious illness until the next January if they switch to ACA.
To remedy this, my client is going to cancel her 2nd year plan that started in June to coincide with calendar year so her last year and 6 months before T65, she will have the option to hop onto an ACA plan 1/1/2021 or 1/1/2022 if she gets a serious illness that would not have coverage from one term to the next on an STM. (assuming ACA still exists)
NatGen's plan to do a 2 or 3 year carry over didn't pass our Insurance commission.
If we ever started mandatory intelligence tests, we'd have a spike in the number of morons!!
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yorkriver1 said:
To remedy this, my client is going to cancel her 2nd year plan that started in June to coincide with calendar year so her last year and 6 months before T65, she will have the option to hop onto an ACA plan 1/1/2021 or 1/1/2022 if she gets a serious illness that would not have coverage from one term to the next on an STM. (assuming ACA still exists).
I don't know what State you're in, but have you sold Pivot Health's Bridge to Medicare plan? It's only available in nine States, and none I sell in so I haven't sold any.
To remedy this, my client is going to cancel her 2nd year plan that started in June to coincide with calendar year so her last year and 6 months before T65, she will have the option to hop onto an ACA plan 1/1/2021 or 1/1/2022 if she gets a serious illness that would not have coverage from one term to the next on an STM. (assuming ACA still exists).
I don't know what State you're in, but have you sold Pivot Health's Bridge to Medicare plan? It's only available in nine States, and none I sell in so I haven't sold any.
- 1,745
Thanks for your suggestion. I work with the designer/source of the plan directly for some other products, Petersen International. The app has an attestation that the person isn't eligible for ACA or Medicare at this time. It's designed for those who move to the USA and have to wait 5 years to qualify to buy Medicare. I don't have anyone in that category right now. It is a good plan for that situation.
Stm plan writing to match calendar year end is important, and always rewriting to get that jan 1st start date.
I wrote the 2 yr nat gen this past year for many reasons. This creates 3 options each year:
1. Rewrite if in good health.
2. Keep year #2 stm if small pre ex arise.
3. Roll into ACA plan if major pre ex arise or income drops.
We didn't have option 2 above this past OEP, and many had to do ACA full price as they no longer could pass stm underwriting.
I hope to rewrite most again into 2 or 3 year plans before the dems take them away.....again
- 1,745
Thanks, I wish Virginia had the 2 or 3 year options. I am glad to know that in thinking things over, I came up with the same solution you have been doing-- rewriting/matching plan end to end of year for ACA bail out if needed. Also assuming ACA still there, let alone 2 or 3 year carry overs.
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