MLR Revisited

[CHUMPS FROM OXFORD]

Positive speech. Will the response be positive?

 

[Yagents]

I like the beginning line:
"Dear panel, I am here to try to save the job of agents who are stupid enough to stay in this business"
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[leevena]

Just a thought abuot commissions for everyone to consider. Why would you expect the carriers to revert to paying commissions as they had in the past?

Regardless of the possible outcomes (obamacare is overturned, mlr's taken out of the administrative side of equation, or anything else) the cat is out of the bag with respect to commissions. I am not so sure that carriers will revert to the old way of doing business.

 

[Ann H]

I think they will upgrade commissions, albeit slowly. Already I'm seeing 4th quarter bonuses again. One carrier will offer a bonus or upgraded commission to spur sales, then another carrier will match or beat it. To stay competitive insurers must keep fresh applicants in the pool, so they cannot afford to disable their marketing. There may be quite a bit of movement back and forth as the market finds its set-point, though. Some carriers will try more direct marketing and keep lower commissions, then remember that the majority of the business is driven by brokers and be forced to change directions. Other carriers will recognize early on that compensating the broker fairly will result in positive sales flow. One carrier in AZ has not dropped their commission at all since Obamacare was enacted, due to the fact that they recognize that their 90% of their sales comes from brokers. Even if the law is repealed, commissions probably won't reach the peak they were before Obamacare, but will settle at a rate quite close to it, I predict. Just a prediction, though. I guess those of us dumb enough to continue in this business will find out!

 

[somarco]

If the carriers figure out they are missing opportunities (losing market share), experiencing higher acquisition costs and lower retention, they will be forced to do something to stay in the game.

We are almost 9 months into the brave new world of lower comp and many carriers have seen a noticeable drop in new business. That is not going to turn around any time soon.

Just a prediction, though. I guess those of us dumb enough to continue in this business will find out!

Chumps is getting out so he will never know.

 

[TwiLight]

MLR is going to wreak havoc on the small individual health insurers State by State.

Attached is an article from Indiana showing that Aetna's Individual Health Plans will pull out of the State due to the MLR effective the end of this year.

With only 700 individual health policies in Indiana the Admin Costs are higher and the MLR requirement will make the plans to costly to maintain. Thus small volumn insurers will just pull out of the market leaving a less competitive market in Indiana, usually a great State for an Insurer to do business in.

Thanks OBAMA.

 

[Yagents]

Read page 8-10 of this Ex cigna exec testimony:
http://republicans.energycommerce.house.gov/Media/file/Hearings/Health/091511/Potter.pdf

Not lookin' good for us when you have baffoons like this touting his expertise in front of congress

 

[somarco]

With only 700 individual health policies in Indiana the Admin Costs are higher and the MLR requirement will make the plans to costly to maintain. Thus small volumn insurers will just pull out of the market leaving a less competitive market in Indiana,

This will repeat in other states until there are 2 - 3 carriers competing for market share.

Of course the idiots in Congress believe this is pirma facie evidence there is not enough competition.

Wendell Potter is an *** with a bug up his a$$ about insurance, and has a woody for health insurance carriers. I believe he was at Cigna when the Nataline Sarkisyan crapola hit the fan.

 

[jbage007]

We need single payer now!

 

[somarco]

We need single payer now!

It's coming.

Then you will complain about that too.