The First Victims of Health Care Reform

[Crabcake Johnny]

In MD, Coventry has already announced 4th quarter rates:

Male non-smoker age 40 $2,500 deductible: $166

For the third quarter that rate was $154 so the increase is 8%.

 

[somarco]

increase is 8%.

x 4 = 32% annualized. Pretty hefty hit.

 

[Crabcake Johnny]

I'd have to look at all four quarters. First quarter rates for that individual were $145. $145 to $166 is 14%.

 

[somarco]

Doesn't matter. Still a big hit. Most new biz rates increase 2 - 3% per quarter. Be interesting to see what other carriers do on 4th quarter.

4thQ KP rates + 3 - 4% depending on age. No big jump in kid rates. No idea what they will do with a sick kid after 9/23.

 

[Crabcake Johnny]

With some carriers, I don't understand and can't get many answers. For BX in MD I their rates for me (43) are $157 for their HSA now and after Sept 23rd. Doesn't make all that much sense.

I was also under the impression that preventative had to be covered, but Carefirst has a new plan - HealthyBlue Triple Option where apparently people can choose "Option 3" which offers no coverage for preventative:

Preventive Care Coverage
Periodic Health ExamOption 1 & 2: No charge, no deductible
Option 3: Not Covered

Periodic OB-GYN ExamOption 1 & 2: No charge, no deductible
Option 3: Not Covered

Well Baby CareOption 1 & 2: No charge, no deductible
Option 3: Not Covered

Anyone care to explain this...be my guest.

 

[669comche]

I am as confused as everyone on this.

I too thought preventative had to be covered.....yet see plans that are not covering it........

As for premiums.....maybe moving the agents commission to outside of the MLR 80% means that these extra preventative measures can be added without much of a rate increase???

I dunno, and it seems no one has the answer. I called BCBSTX today and they said they are not changing commissions until 2011 at the earliest.

I just don't understand how these carriers expect to be able to sell these plans by lowing the agents commissions.

I mean if this was GM and they told their employees to take a 50% pay cut, but still do the same amount of work what would have happened?

Its like everyone thinks that people will wake up and suddenly start going direct to the carrier for their insurance.

Until now, many carriers rely on the agents spending their own money to market and sell their plans (leads etc) Maybe they will kick some money back to agents if you sell their plans in the form of marketing credits/dollars?

They are going to have to do something......or volume will drop drastically for all carriers.

 

[Crabcake Johnny]

If I understand correctly that all plans have to offer preventative with no cost sharing and plans can have no annual limits, I cannot find a single carrier in MD that complies when I run quotes past Sept 23rd.

When I put in an effective date of Sept 25th for Assurant's Coremed this is what it states: (Anyone? Bueller? Assurant actually states that benefits are paid according to the PPACA...then doesn't comply? Are they going to play the association card?)

Preventive Care / Wellness / Routine Physical Benefits will be paid in accordance with the Patient Protection and Affordable Care Act (PPACA). Covered preventive medicine services are subject to plan coinsurance (Plan deductible will be waived.) up to a maximum benefit of $500 after an initial 3-month waiting period. After the maximum is paid, additional covered preventive medicine services are subject to the plan deductible and coinsurance.

 

[Suis]

Here's my GAs take on the matter what do you think??
On new apps will have an effective date 30 days out. It’s a great opportunity to sell them a short term policy for that 30 day gap.

no pre-x for kids. Most carriers do not want the risk of child only applications at this time. They will eventually add these back on but the government didn’t give the actuaries enough time to access all the risks to come up with adequate premiums.

[FONT='Calibri','sans-serif']If health care commissions go away? I hate to say this, but we’ve been “overpaid” for years in my opinion. It makes a lot of agents lazy. They write 3 applications and make $1,500 in a week and they don’t service their customers and don’t adequately cover them in a lot of cases with things like critical illness, life insurance, disability and accident policies. Commissions dropping down to 12 to 15% 1st year is not a huge problem for agents like us that are eager to help our clients and give them the correct coverage.[/FONT]

 

[669comche]

Imagine this. If professionals like us are confused I can only imagine what consumers are going to be thinking!!!
- - - - - - - - - - - - - - - - - -
12-15%

I think most agents would jump at these sort of commissions if they were going to be offered to us.

So far I have heard the following level:

4%
5%
8%
10%
12%
15%

Does ANYONE actually have any inside information on this or are we all just speculating?

 

[CHUMPS FROM OXFORD]

Just speculating although a few persons do seem to have some insight. I'm not one of them although I can tell you that Drew, Peyton and Aaron are your top three. Tony will have a better year than you think.