Trump's health care executive order: Pros & Cons For Agents & Consumers

[scagnt83]

I'm concerned with how independent agents can be involved in these AHP transactions.
I see mafia/union style favoritism to the biggest agencies, leaving the little guy out.
I'm sure the Natl Assoc of Realtors already has a some big agency in mind.

That stuff always has happened and very likely always will to an extent. Not much different than a business owner giving the biz to their golf buddy or nephew or something.

The shady stuff that goes along with very large groups behind closed doors would blow your mind sometimes. Ive seen situations with HR execs who line their pockets more than I care to remember.

At the end of the day, its on the business and the owner/board to provide oversight in the vendor selection process and other biz ops. Some do, some dont.

 

[shonceman]

Those are the reasons the pool (association) needs to be as broad as possible. Start a "National Association for Small Business Employees" .... that would cover pretty much everyone that would be interested in an AHP.

You mean like NASE?
Request Small Business/Self Employed Health Insurance Quotes - NASE Small Business Health Insurance

 

[scagnt83]

You mean like NASE?
Request Small Business/Self Employed Health Insurance Quotes - NASE Small Business Health Insurance

No. Covering Owners only would be too small of a pool. And that "small business health insurance" is not an Association Plan.

 

[shonceman]

No. Covering Owners only would be too small of a pool. And that "small business health insurance" is not an Association Plan.

I know. I was being facetious. But they've been promoting themselves as an Association Plan for decades.

 

[kgmom219]

Everyone take a chill pill.

1. The Association plans will appeal to the fringe element. Those people who are healthy and buy Share plans, Fixed Indemnity, etc
2. This is a PROPOSED rule. 60 day comment period opened today. We are at least 180 days out on Association Plans. 90-120 days out on STM changing to 12+ months
3. Just because they got approved doesn't mean the carriers are going to jump on board and offer plans
4. This is a 2019 issue. And we have NO idea how any of this is going to look in 12 months.
5. The National Association of Realtors will offer some crap plan. Again. We will get the Benefit Summary, point out the holes and keep our clients.
6. TX passed the Association Law 10+ years prior to ACA. The carriers took a pass. The law passed. But with the exception of the Texas Bar, no one could find an association plan to buy.

 

[leevena]

While I agree that many association programs have been less than successful, it is possible for some to be very successful, for both the employer and agent community. I have been part of, and have observed a few of these programs. The key is not so much geography or industry, but is in the design of the program. Whether it is fully-insured, or self-funded, the proper design of plans, participation requirements, adherence by employers, underwriting, medical management, and vendor control can make for a success.

 

[AllenChicago]

Association plans were popular here in Illinois. Consumer Benefit Association utilized IHC Health Solutions as the insurer. Any "Consumer" could pay $9.95 a month for the association benefits, and was then entitled to apply for major medical.

For those of you with experience in small-group sales, this article may be a good read.
7 facts about the new association health plan proposal

 

[junkman]

Association plans were popular here in Illinois. Consumer Benefit Association utilized IHC Health Solutions as the insurer. Any "Consumer" could pay $9.95 a month for the association benefits, and was then entitled to apply for major medical.

For those of you with experience in small-group sales, this article may be a good read.
7 facts about the new association health plan proposal

And they compete on price by having restrictive underwriting or compete on underwriting by having high rates. I've watched many crash and burn. In the old days when groups could be declined, we'd dump the sickies on the no-underwriting trust and clean the group up.

Alternatively, we'd write a clean group on the high underwriting trust then move them wherever necessary at renewal.

The trusts always went belly up - always. Use them when no other choice or client won't buy something else.

I also remember losing 3 out of 4 cases when the trust crashed even though I'd explained that the only reason I was showing the trust was to cover the market and not a recommendation. Any plan not paying claims should be cheap. This one was 20% under the major carrier. You always help implement their choice and sometimes get blamed for bad choices.

 

[somarco]

Association plans tend to be very political with the agent being someone with connections (juice) even though they may have no idea what they are doing.

Lee is right. They are a mixed bag. Many went under but some also not only survived but thrived.

White collar assocations tend to do well while blue collar and heterogeneous ones not so well. Exceptions are those blue collar groups that are well organized and well managed.

Joe Agent has little chance of getting in the door and often has a hard time trying to take someone away from a well run association plan.

I had a fair amount of interaction with assocations a number of years ago. The professional associations did well as did a number that were related to the auto industry. This was more a function of who was managing the association than it was the participants.

There wer also several homebuilders associations that were a joke and eventually went belly up. The line was "if you had ever seen a house you could be a member". They took in every sick crook imaginable and eventually went down the crapper.

A few of the better managed plans included the FLA Auto Dealers and FLA Auto Parts Dealers. Also did some business with the GA Auto Dealers which was very well managed.

Outside agents didn't have a chance. These solid groups had loss ratio's in the high 80's to low 90's. Almost impossible to move a group and save them $$$.

If you don't have the connections you won't get to play.

 

[Yagents]

Thanks Bob, that was the answer I was looking for.