Claims Loss Ratio In Bill

[TXINSURANCE]

Has anyone been able to determine WHEN the claims loss ratio of 80% / 85% would start if this bill becomes law? Specifically the Senate bill, which I believe is the only one with the claims loss references contained to my knowledge.

To me this is the biggest threat to agents on the individual market in the short term. I am trying to figure out if the claims loss ratio starts immediate or in 2014 or some other later date, I can't put my finger on this.


Thanks!

 

[0b1kanobee]

Hold on.......I'm sure you will get several different answers. Doesn't anybody here have any contacts in high places lol for these types of questions? We just seem to be guesing here all the time. More frustrating than anything. ;-)

 

[moonlightandmargaritas]

I am trying to figure out if the claims loss ratio starts immediate or in 2014 or some other later date, I can't put my finger on this.

Don't sweat it, you're screwed either way.

 

[ksigmtsu]

House bill it seemed that the 85% loss ratio applied to Medicare Advantage only.

 

[somarco]

The House bill is pretty much neutered. If/when they vote it will be on a deem & pass whereby the House isn't really voting on the provisions of the bill but are saying it looks fine to them as long as they can come back and fix it during reconciliation.

The House want's 51 Senate signatures, indicating they will send it through the reconciliation process before they walk the plank.

Good luck on that one.

Wonder what kind of job Nancy will have next year when she is castrated by the new Republican majority.

 

[Dave020]

Has anyone been able to determine WHEN the claims loss ratio of 80% / 85% would start if this bill becomes law? Specifically the Senate bill, which I believe is the only one with the claims loss references contained to my knowledge.

To me this is the biggest threat to agents on the individual market in the short term. I am trying to figure out if the claims loss ratio starts immediate or in 2014 or some other later date, I can't put my finger on this.


Thanks!

Under HR 3590 (Senate Bill):


"Requirement to report medical loss ratio effective plan year 2010; requirement to provide rebates effective January 1, 2011."

85% for large group
80% for individual and small group

 

[ABC]

This could have a huge impact on commission. We could be cut out of the picture.

 

[Winter_123]

This could have a huge impact on commission. We could be cut out of the picture.

As discussed for three years running. It usually triggers a round of proclamations by any that with guaranteed issue and 5-8% commission it will be a windfall or something that can be offset with volume.

Whatever. Can only stir that pot so much and then reality sets in.

 

[Full Throttle]

I wish I knew the answers. Will my base renewal income/rewrites be cut in half? Quarter? Disappear? Will profitably selling new major medical policies be possible? Are the small group plans I'm selling now going to get so cut in the compensation category that I can't profitably service them? Will small group still exist with the exchanges?

If all my health commissions were to get drastically cut or eliminated, ideally I would have until 2014 to adjust. If it's 12 months, it would suck, but I would be fine. Around 6 months, it would suck big time. Time will tell.

As for now, I'm going to keep selling as much life insurance as I possibly can and reluctantly sell health as I run across it (which seems to very often).

 

[TXINSURANCE]

As discussed for three years running. It usually triggers a round of proclamations by any that with guaranteed issue and 5-8% commission it will be a windfall or something that can be offset with volume.

Whatever. Can only stir that pot so much and then reality sets in.

Claims loss would start immediate but GI would start in 2014? I guess the way I read the bill the claims loss ratios start many years before GI, so where is the volume offset?

I believe in order to avoid some tax issues the not for profits like Blues would have to run higher than 80%, I believe 85% I read it somewhere, now I don't remember where.