Recent Letters from Blue Shield & UHC in California

[insurehound]

Blue Shield has discontinued their 12 month rate guarantee program on Individual business and UHC has lowered our commission to 4% on new and renewing Individual business. Hooray for Health Care Reform!

I'm waiting for the ever-famous, "where have you been?" or "this is old news" post.

 

[Rivers1]

UHC / Pacificare - DOOMSDAY LETER - Lord Help Us

 

[chp]

Thats the first I have heard of a Blues' company reducing the 12 month lock on rates...has anyone else heard of this? A sign of things to come?

 

[DS4]

Yesterdays email,

Individual & Family Plans:
12-month Rate Guarantee Program Discontinued

In light of upcoming health reform changes to the January 2011 IFP portfolio, Blue Shield
of California, and Blue Shield of California Life & Health Insurance Company’s 12-month
IFP rate guarantee will be discontinued for new business with effective dates on or after October 1, 2010. All sales materials have been updated and are available for order or download on Producer Connection. Please make sure you are using the most current, October 2010, IFP sales materials.

 

[AllenChicago]

Why is California so unfriendly to Insurance Companies, Insurance Agents and Business in general? I investigated getting a license there to write a life policy on a relative who lives in San Diego. California required, finger prints, $400 and required that I be sponsored by a California licensed brokerage. Needless to say, I waited until my in-laws came to Illinois and wrote the policies here.
-Allen

 

[DS4]

California required, finger prints, $400 and required that I be sponsored by a California licensed brokerage.

California has reached the maximum number of allowable insurance agents. There is now a waiting list.

 

[Crabcake Johnny]

FL is similar. For a non-resident license it's fingerprints and a per-county appointment fee.

 

[AllenChicago]

California has reached the maximum number of allowable insurance agents. There is now a waiting list.

So Blue Cross and UnitedHealthcare choose the state with the most agents to cut commissions and save the most money on labor costs. Which holding company has ownership of Blue Cross out there? Healthcare Services Corporation owns Blue Cross of Illinois.
-AC

 

[incis]

FL is similar. For a non-resident license it's fingerprints and a per-county appointment fee.

I believe the per county apt fee is resident license, not non residence

 

[Dave020]

So Blue Cross and UnitedHealthcare choose the state with the most agents to cut commissions and save the most money on labor costs. Which holding company has ownership of Blue Cross out there? Healthcare Services Corporation owns Blue Cross of Illinois.
-AC

It's Blue Shield, not Blue Cross. In CA, they are two separate companies who compete head-to-head. Anthem Blue Cross, and the not-for-profit Blue Shield of California.

Anthem BC is not currently planning on removing the 12-month rate lock. Subject to change, of course.