Obama Care and Maine... ?

[TonyC]

A friend of mine told me that Maine has had a similar healthcare program for a few years now...guaranteed issue.

Apparently, after this was done only a few carriers stayed in Maine.

Will this happen with Obamacare?

 

[Yagents]

When there were 40+ other states without GI, an insurer had a choice to play in a more profitable state. But now that all 50 are going GI, they now have to decide whether to stay in the insurance business and take their 3-5% mandated profit margins, or get out altogether.

I don't see this in the horizon: "Humana- the place for the best CAR insurance rates"

We better hope some want to play, or it's single payer in short order.

 

[somarco]

Yes, and yes.

State by State Guide to Guaranteed Issue Health Insurance in 2012

Other states with GI include MA, NY, NJ and VT.

I estimate 3 carriers per state. Some will have fewer, some might have as many as 5. In some states HMO's will continue to play a minor role in limited zip codes.

 

[Ann H]

Yes, and yes.

State by State Guide to Guaranteed Issue Health Insurance in 2012

Other states with GI include MA, NY, NJ and VT.

I estimate 3 carriers per state. Some will have fewer, some might have as many as 5. In some states HMO's will continue to play a minor role in limited zip codes.

Agreed. About 15 years ago, when HIPAA was enacted, it changed the group market into a Guaranteed Issue market. Before then, we had about 40 carriers in AZ to pick from, all with valid group plans, most with longevity. After HIPAA and GI, the market compressed to 7 major carriers. It is now 5 carriers. Somarco says 3 carriers per state, and he has been in this business longer than Methusaleh walked on the earth, so I respect that opinion. I personally expected 2 carriers per state. Often the BCBS plans remain, and usually one or two others.

 

[russelltw]

I agree with Somarco on this. It will be a battle to see who can adminisitor the single payor plan.

We as health insurance agents should be (or have been) working on this change in our industry. If compensation is reasonable inside/outside of the exchange, we may have a 4-7 year run. The range depends on claims.

Inside the exchange you will deal with subsidies and those with lower incomes. Premiums won't make much of a difference because these people will not be paying much or any of the premium.

Outside the exchange you will deal with those who can not qualify for any subsidy. Expect people to curse you out when you give them their rate options for 1/1/14. It will be high. I feel for those who will have to get coverage outside the exchange.

Advice:
1 - Better turn your side gig into a career. If you don't have a side gig, I suggest you get one.

2 - Make your income as low as possible in 2012. It's what the exchanges will base your subsidy on. If you have no access to group coverage through a spouse and you don't have group coverage, you may be in the exchange.

I don't like the advice I just gave but from my standpoint, it's going to be how the system is played.

 

[CHUMPS FROM OXFORD]

"Advice:
1 - Better turn your side gig into a career. If you don't have a side gig, I suggest you get one."

You are 100% correct!

GET OUT OF INDIVIDUAL HEALTH INSURANCE!!!! NOW!!!

​

 

[Yagents]

Here's an article about the hurdles for companies to be on the exchange. Tougher the exchange, the less competition that will exist.

Insurers Face Jumbled Market With Health Exchange Rules - Bloomberg

 

[TonyC]

Wow...guess i better pick the Guitar Back up and start learning some cords.