Humana Will Compete for Our In-force Clients

[Post Quartermaster]

humana accidentally dropped rate increases into my broker portal on aca business for the hmo in the Austin tx area... 22-25%.... they have since pulled the increase report off my portal but not before the spread sheet was downloaded

Is the 22~25% before or after age change rate adjustments? I am finding that age change accounts for 4-5% of the load in my ACA renewals....

 

[taterpeeler]

Is the 22~25% before or after age change rate adjustments? I am finding that age change accounts for 4-5% of the load in my ACA renewals....

Dunno... Didn't do that much research...

 

[ActuaryGuy]

Is the 22~25% before or after age change rate adjustments? I am finding that age change accounts for 4-5% of the load in my ACA renewals....

This is certainly a good point to mention. Note that moving from the child rate to an adult rate will be a big shock to premium, a little under 60% for the age-related change on that member alone. Then there will also be some large family cases where the number of rated dependents was capped off at 3, and one of the dependents "ages off" to suddenly be counted in the premium. That will obviously be a big impact as the member premium goes from $0 to a full adult rate.

 

[somarco]

Does Actuary Guy work for Humana?

 

[Yagents]

This is certainly a good point to mention. Note that moving from the child rate to an adult rate will be a big shock to premium, a little under 60% for the age-related change on that member alone. Then there will also be some large family cases where the number of rated dependents was capped off at 3, and one of the dependents "ages off" to suddenly be counted in the premium. That will obviously be a big impact as the member premium goes from $0 to a full adult rate.

I get the child to adult "bump"up.
But, don't get the aging out comment.
If I have 5 kids on my policy, I only pay for 3.
If kid #5 ages out, then I still pay the same price, but now for 4 kids.
Kid #5 has the extra cost now of securing coverage on own.
What am I missing?

 

[Ann H]

I get the child to adult "bump"up.
But, don't get the aging out comment.
If I have 5 kids on my policy, I only pay for 3.
If kid #5 ages out, then I still pay the same price, but now for 4 kids.
Kid #5 has the extra cost now of securing coverage on own.
What am I missing?

This is certainly a good point to mention. Note that moving from the child rate to an adult rate will be a big shock to premium, a little under 60% for the age-related change on that member alone. Then there will also be some large family cases where the number of rated dependents was capped off at 3, and one of the dependents "ages off" to suddenly be counted in the premium. That will obviously be a big impact as the member premium goes from $0 to a full adult rate.

When Actuary Guy said "one of the dependents 'ages off' to suddenly be counted in the premium," he probably meant the child turns age 19, whereas you were thinking about the child turning age 26.

I think the first part of Actuary Guy's post was about a child rate "bumping up" from the low rate for a child to an adult rate at age 19. Then the second part talks about the compounded effect of going from a rate of $0 to an adult rate because in a large family, the family wasn't paying a premium for more than 3 kids.

 

[AllenChicago]

Tuesday 10.14.2014

Humana posted their 2015 commission schedule today.

1. Medicare Advantage renewal payments for prior year sales decreased. First time I've seen renewals of inforce plans decreased. But I've nver sold a MedAdvantage, so this might be "normal"?

2. MedSupps - Only 6 years of commissions now.

3. Major Med - 6% first year and 4% renewals. (Was 8% for 2014)

ac

 

[ActuaryGuy]

When Actuary Guy said "one of the dependents 'ages off' to suddenly be counted in the premium," he probably meant the child turns age 19, whereas you were thinking about the child turning age 26.

I think the first part of Actuary Guy's post was about a child rate "bumping up" from the low rate for a child to an adult rate at age 19. Then the second part talks about the compounded effect of going from a rate of $0 to an adult rate because in a large family, the family wasn't paying a premium for more than 3 kids.

Yes, you are correct Ann, just one correction. The dependent age cutoff is between 20 and 21, not 18 and 19. So I really shouldn't have used the "adult" terminology.

 

[somarco]

I get the child to adult "bump"up.
But, don't get the aging out comment.
If I have 5 kids on my policy, I only pay for 3.
If kid #5 ages out, then I still pay the same price, but now for 4 kids.
Kid #5 has the extra cost now of securing coverage on own.
What am I missing?

The 2015 commission schedule ............

 

[Ann H]

Yes, you are correct Ann, just one correction. The dependent age cutoff is between 20 and 21, not 18 and 19. So I really shouldn't have used the "adult" terminology.

Argh... I hate it when I post something wrong! You are correct, of course. Thanks for catching that!