Hr 4460

ABC · 09-10-2008, 11:35 AM

http://www.ncpa.org/pub/ba/ba630/

I have heard about this proposal.

If this bill was passed this could open up the market. These people would come to the internet for policies.

Anyone selling individual policies should be aware of this.

ABC · 09-10-2008, 11:49 AM

H.R. 4460: Health Care Choice Act of 2007 (GovTrack.us)

somarco · 09-10-2008, 01:11 PM

The folks who are promoting a national health market are either ignorant of, or simply choose to ignore the problems with MEWA's from a few years back.

And this . . .

Let's say the folks in MA decided they wanted to buy a policy in WI where the rates are (using the chart in your link) about 80% lower. A couple of things happen.

The rates in MA are high (in part) because of guaranteed issue. So the healthy ones leave MA and buy policies in WI.

What happens to the rest of the folks in MA?

Their rates increase even more, leaving fewer people insured.

The rates in WI are also based on a combination of loss experience and negotiated provider pricing. If they suddenly get an influx of people from high cost MA purchasing low premium plans in WI then the rates in WI must increase to reflect the interlopers from other states. So the rates in WI increase to the point of covering the loss experience.

The net effect is folks in both states lose.

It is a stupid proposal.

TXINSURANCE · 09-10-2008, 01:45 PM

Look at the dates this was introduced in 2007 and went no where.

Moving right along... LOL

ABC · 09-10-2008, 01:54 PM

I agree with you about adverse selection. I think those policies would have options to move to plans that do not have the state mandates.

I think a broker/agent still has to be prepared for something like this getting passed.

There are already carriers that own national networks. These carriers would be in a very good position to pick up huge market share if this bill got passed.

If a broker is in the right position they could pick up a huge amount of new clients. If I am in Indiana and now all of sudden I can sell Cigna's individual policy from Texas and that policy is cheaper than the leading carrier. I see real opportunity.

somarco · 09-10-2008, 08:36 PM

I live in GA. At one time I had an OH non-res license.

Rates there are about a third of what we have in GA. That means I have to sell 3x as much to make the same as in GA.

That legislation will never fly.