Another Company Falls Victim of Reform

Rivers1

Guru
1000 Post Club
Not a company I represent, just sending out an FYI.
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To: All NHIC Agents and Managers
Date: May 17, 2010
From: Marketing
Subject: National Health Care Reform


After careful consideration of the recent healthcare legislation, National Health
Insurance Company has determined that its medical expense plan does not meet
the requirements set forth by the Patient Protection and Affordability Care Act
and the Health Care and Education Reconciliation Act of 2010. With this
knowledge, NHIC has decided to immediately cease distributing it medical
expense plan.
NHIC has not come to this decision lightly; however, we feel that this decision is
necessary for the continued (overall) success of the company in the future.
All new business that has been submitted but not issued will be returned to you
in hopes that you can place it elsewhere.
We are diligently working on a new company direction and we will be in a
position to share this with you early next week.
 
Two questions:

1. From the looks of their "web site" (and I use the term loosely), who are they and do they offer anything that would be considered real major medical health insurance coverage? CIA in CA in what market? Never heard of them and they seem to be (typically) based in Dallas.

2. Your title says "another company falls victim". What other company has suspended health insurance sales due to healthcare reform?

This is the first one I have heard of and, really, it's not like they were competitive with Blue Cross.
 
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NHIC is a subsidiary of EDS and handles claim admin. Most recently NHIC had the Part A & B claims admin contract here in California. In 2008, NHIC lost the contract in Calif to Palmetto. NHIC still admins Medicare claims in other states.
I don't think they sell health ins. Just process claims.
No big loss.
 
American National hooked ass 2 weeks ago
Ok. Don't know who they are either.
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NHIC is a subsidiary of EDS and handles claim admin. Most recently NHIC had the Part A & B claims admin contract here in California. In 2008, NHIC lost the contract in Calif to Palmetto. NHIC still admins Medicare claims in other states.
I don't think they sell health ins. Just process claims.
No big loss.

Ok, thanks. I assume that they are withdrawing plans in another/other states?

Really, none of this will mean anything until a named carrier like Aetna, Cigna, Blue or someone bails on IFP.
 
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Startup health insurer shutting
June 4, 2010 by Michael Schwartz

The hotly debated healthcare reform bill signed into law in March has killed a local insurance company.
...“considerable uncertainties” in the health insurance market caused by the recent federal healthcare legislation made the two year-old company’s business model unsustainable.
“Despite a product that was gaining increasing acceptance ..., the uncertainties in the regulatory climate coupled with new demands imposed by national healthcare reforms have made it challenging to sustain the level of sales required to remain viable over the long run, ...” Startup health insurer shutting : Richmond BizSense
 
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