Premera Blue Cross Solution to Health Care Changes in WA

[LGilmore]

Just opened my mail today to read of Premera Blue Cross of Washington's solution for the rising cost of health care compliance for small group....

Groups of 1 to 2 commission level 0%.

Since they can't tell the market they don't want to sell the product, they take away the incentive for any agent to sell it as well.

nice. real nice.

 

[briangruss]

Larry, I thought it was just me. Do you write group business through AWB, they don't do groups of one, but give 5% on any of their groups.

 

[LGilmore]

I've looked at the various trust plans around, before, wasn't that interested. Now maybe a bit more.

This is going to be an interesting 6-12 months. Regence is taking the heat for saying "no" to the first stages of Obama's plan and Premera appears on the surface to be complying with it, but at the same time cutting the compensation to 0-4% depending on product so agents won't promote it.

I don't know of many agents who will quote PBC for no commission.

The health side of things is a small part of my business so we'll see what happens next.

 

[VolAgent]

I've looked at the various trust plans around, before, wasn't that interested. Now maybe a bit more.

This is going to be an interesting 6-12 months. Regence is taking the heat for saying "no" to the first stages of Obama's plan and Premera appears on the surface to be complying with it, but at the same time cutting the compensation to 0-4% depending on product so agents won't promote it.

I don't know of many agents who will quote PBC for no commission.

The health side of things is a small part of my business so we'll see what happens next.

Could you charge a fee directly to the group for putting them with PBC?

 

[LGilmore]

":Could you charge a fee directly to the group for putting them with PBC? "

I don't think I can in this state without a licensing change. I actually just applied for the individual coverage as it is now better than small group amongest their offerings. Just reduced by deductible by $2000, kept plan design the same, lost a little in RX, but I use generic anyway as the retail chains offer $4 copays for my meds, and cut $45 a month from my premium and boosted by commission from 1% to 4%.

I had stayed in the group plan for a long time kind of worried that my health would get in the way. I just filled out and scored the 327 question Wa state health questionaire and found I stayed below their threshold of going to the high risk pool. So 12/1 goodbye group premium you aren't going to pay me for and hello individual plan with lower deductible and premium and four times the commission.

Now what to do with other small group accounts. Unfortunately this year, I have had several small group become groups of two because of the economy. I have to find out what is going to happen when a group of 10 becomes 2 and when they flip back again?

unfortunately, in our state the blues (both) are managed by people who've never sold before. It's not like this is the first stupid decision or program they've come up with. Either one consistantly over the years have made stupid rules as if they don't work in a competitive market. Their "programs" usually last 6 months and then when they realize their "program" is actually hurting their market share, they abandon it. Par for the course.

 

[jbage007]

just curious but why do you guys put up with that insurance commissioner there?

THIS is as much of an anti-consumer move as anything!

 

[LGilmore]

"just curious but why do you guys put up with that insurance commissioner there?"

Elected position. Just have one vote and for the most part, he's been fine. This zero commission thing just came Saturday, so we'll see what happens.

Also as I posted eariler, it's not like the carriers have a brain trust going on either. They kick themselves as a rule about every third year with some rule or change that costs them business. Insurance like many companies are no longer run by people who were hands on in production or creation of the product they sell. Most admins are basically educated in work force management be it insurance, tire sales or airplanes.

Making sales difficult is something they all do, because they've never had to sell their own products. Just the nature of the beast.