Obamacare Phones Offered to Health Insurance Buyers

[RayNY]

We can do it too...They (the company offering the phones) pay a $50 bounty every time you sign someone up for an "obamaphone", I have some friends that make a living off of it.

You can also give them RX/Dental/Vision discount cards (some pay up to a dollar every time they use it). You can also give them coupons, free passes to waterparks (so long as you got them for free), and many other incentives.

The rules state that you may not pay for it, and it may not be something usually paid for but is provided at no cost as an incentive. Outside of that, there is quite some flexibility.

 

[ActuaryGuy]

CHA plans are extremely expensive, so will not be fully subsidized. Not sure folks will be willing to pay the extra dollars for this supposed perk (especially if they can get it outside of the insurance purchase anyway).

 

[VolAgent]

We can do it too...They (the company offering the phones) pay a $50 bounty every time you sign someone up for an "obamaphone", I have some friends that make a living off of it.

You can also give them RX/Dental/Vision discount cards (some pay up to a dollar every time they use it). You can also give them coupons, free passes to waterparks (so long as you got them for free), and many other incentives.

The rules state that you may not pay for it, and it may not be something usually paid for but is provided at no cost as an incentive. Outside of that, there is quite some flexibility.

These are not the Lifeline cell phones, these are phones from CHA. So this is definitely rebating. The company is receiving premium and returning part of it in the from of a phone that the insured otherwise would have to pay for.

 

[scagnt83]

We can do it too...They (the company offering the phones) pay a $50 bounty every time you sign someone up for an "obamaphone", I have some friends that make a living off of it.

You can also give them RX/Dental/Vision discount cards (some pay up to a dollar every time they use it). You can also give them coupons, free passes to waterparks (so long as you got them for free), and many other incentives.

The rules state that you may not pay for it, and it may not be something usually paid for but is provided at no cost as an incentive. Outside of that, there is quite some flexibility.

Rebating rules differ greatly from state to state. There is no one general answer here.

But in SC this is most definitely rebating.
Anything that can be considered a "monetary incentive". This includes consumer items & services that could be construed as having monetary value.

If you pay for it or get it for free has no bearing on the law in SC. (and many other states)

But since rebating laws are state specific, each state can do its own thing. This may be perfectly legal in TN. It would be in some western states.

 

[VolAgent]

Rebating rules differ greatly from state to state. There is no one general answer here.

But in SC this is most definitely rebating.
Anything that can be considered a "monetary incentive". This includes consumer items & services that could be construed as having monetary value.

If you pay for it or get it for free has no bearing on the law in SC. (and many other states)

But since rebating laws are state specific, each state can do its own thing. This may be perfectly legal in TN. It would be in some western states.

Nope, rebating is illegal in TN.

I'm sure they have found some way around the restriction. They are probably characterizing it as part of the coverage. Or maybe they are daring the DOI to go after them, no clue.