- 403
This seems too familiar. Vermont mandated guaranteed issue in 1992. By 1994, all but 12 carriers had canceled their co. licenses (about half of the 12 were VT HMOs, nowhere to go), and only two were actually selling.
Massachesetts: Half the Carriers Stop Taking Applications
- Thread starter Crabcake Johnny
- Start date
I'm in Mass. There is no broker role for the individual market. Most groups under 5 go thru chambers or other associations to get access to the carriers. The majority of the groups under 10 or so wind up dealing directly with the carrier. There are a fair amount of brokers that deal with 15-100 market and other brokers that work with larger groups.
I deal in the 15-250 market specializing in ERISA programs.
I deal in the 15-250 market specializing in ERISA programs.
- 10,276
If most are going outside of the market...who is writing them? I see Ehealth has direct links as do a few others.
brookfieldpartners
Expert
There are a lot of questions here to answer, but feel free to e-mail me: brad @ brookfieldpartners.com
In MA, under 5 you only have access through an intermediary. We have a few different intermediaries to choose from. That includes individual non-group coverage.
The reason you don't see many people participating in this is because comp. is low. $10 per subscriber per month. On the positive side it is guaranteed issue, so they are getting the coverage. Unless you sell a lot, and can sell it without going anywhere then you can make some decent money.
I get most of my referrals for small group from financial advisors, and agents that aren't allowed to sell outside products. It is easy to sell over the phone. I have staff people that handle the paperwork, and it takes me only about 15 minutes to do the sale over the phone. That is me though, and I have done a lot of them.
In MA, which the rest of you are going to see soon, rates have gone up unbelievably fast. My average rate increase that I have been giving out is about 35%. That is after last years 20%. For example, I have a 32 y.o. small business, 1 family plan, BCBS, 2k/4k deductible, and the premium went from 655/mo. to 950/mo. How is that for a renewal?
One of the biggest problems we are having now that it is guaranteed issue and no pre -x conditions is what we are now calling "jumping" People are going with cheap carriers taking high deductible plans, but if something happens, they jump to a fully insured plan with no deductible, and get their procedures done. When they are done, they switch back to another carrier for the cheaper premium. As unethical as it is, it is not illegal. Carriers don't like it, but there aren't enough controls to fix the problem. They have to take the client.
There aren't a lot of guys doing health in Mass. because it really isn't worth it, unless you have a good source of referrals, and you are good a cross-selling the sh*t out of it.
I am a NAIFA member up here in Mass. and am the State PAC chair, and a member of the Legislative Committee. I am keeping up to date with all this pretty quickly; therefore, I haven't had much time to tell people what's going on in the forum.
Let me know any questions!
In MA, under 5 you only have access through an intermediary. We have a few different intermediaries to choose from. That includes individual non-group coverage.
The reason you don't see many people participating in this is because comp. is low. $10 per subscriber per month. On the positive side it is guaranteed issue, so they are getting the coverage. Unless you sell a lot, and can sell it without going anywhere then you can make some decent money.
I get most of my referrals for small group from financial advisors, and agents that aren't allowed to sell outside products. It is easy to sell over the phone. I have staff people that handle the paperwork, and it takes me only about 15 minutes to do the sale over the phone. That is me though, and I have done a lot of them.
In MA, which the rest of you are going to see soon, rates have gone up unbelievably fast. My average rate increase that I have been giving out is about 35%. That is after last years 20%. For example, I have a 32 y.o. small business, 1 family plan, BCBS, 2k/4k deductible, and the premium went from 655/mo. to 950/mo. How is that for a renewal?
One of the biggest problems we are having now that it is guaranteed issue and no pre -x conditions is what we are now calling "jumping" People are going with cheap carriers taking high deductible plans, but if something happens, they jump to a fully insured plan with no deductible, and get their procedures done. When they are done, they switch back to another carrier for the cheaper premium. As unethical as it is, it is not illegal. Carriers don't like it, but there aren't enough controls to fix the problem. They have to take the client.
There aren't a lot of guys doing health in Mass. because it really isn't worth it, unless you have a good source of referrals, and you are good a cross-selling the sh*t out of it.
I am a NAIFA member up here in Mass. and am the State PAC chair, and a member of the Legislative Committee. I am keeping up to date with all this pretty quickly; therefore, I haven't had much time to tell people what's going on in the forum.
Let me know any questions!
- 10,276
Interesting. Do you find a lot of people understand that by using you it is the same rate as going direct? And do a lot of people search online for quotes?
When you write a policy, can it be done online? Also...since I can't stop asking questions...does the $10 stay level for the whole contract?
When you write a policy, can it be done online? Also...since I can't stop asking questions...does the $10 stay level for the whole contract?
- 795
Ten dollars per client per MONTH is f'ing peanuts.
This doesn't bode well for the rest of the country's brokers out there.
Man, what a kick in the balls...!
Haven't heard back from my aunt yet, but when I do, I'll post if it's interesting...
I was wondering about 'jumping' - what a nightmare this is, holy cow.
Still trying to be optimistic about all these things, but this didn't help!
This doesn't bode well for the rest of the country's brokers out there.
Man, what a kick in the balls...!
Haven't heard back from my aunt yet, but when I do, I'll post if it's interesting...
I was wondering about 'jumping' - what a nightmare this is, holy cow.
Still trying to be optimistic about all these things, but this didn't help!
- 10,276
I'll take that $10 per month per client in a heartbeat. And I'm serious.
- Thread starter
- #38
- 14,809
I could write 3 cases a day with an average of 3 lives per case = $1,800 per week.
- 2,024
$10 per month per client doesn't sound that bad honestly. Especially if that is also the renewal rate. Thats double the renewals I currenly get on basically anyone under age 30 now.
- 8,707
Yes $1800 a week is what you would have after you pick up 780 clients assuming renewal commissions are not lower assuming it doesn't go to a cms part-c&d type commission process after a person has had insurance for 6 years no more commission.
Actually I think I could make a go out of it if I'm spending little time with the client but as brookfield has mentioned most clients take out minimum plan and then jump to high cost plan to cover procedures and then drop back to minimum plan assuming they were dealing with me that could be as little 3 apps per person per expensive procedure and still only getting the same $10 per month per client.
Anthem Medicare supps in maine have the same type of structure First Year $10 per month per policy renewal $7.50 per month per policy...I technically can sell Maines Dirigo program( enrollment is closed to individuals but a sole proprietor can still sign up with no subsidy) and the commission I believe is $10 per month per policy oh and the last family premium I saw was $1380 per month so as a percentage the commission was 7/10th of 1 percent.
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