Insurance Agent Forum

[Dave020]

This is for CA agents mainly, but may apply in other states as well.

I have normally worked under the idea that an underwritten offer would beat the premium for a HIPAA plan. I ran into a situation the other day where the offer from underwriting at 50% rate up is almost $100 more than the HIPAA premium for the same coverage plan.

Now, since the applicant was enrolled in the underwritten plan, carrier said no way on HIPAA change since no longer eligible. Had to go through channels to get the ok to cancel the underwritten as never effective and go over to HIPAA. It can be done, but has to be done within the 10-day free look period. That is a very short window indeed.

My point here is that it is possible with carriers that the rate for HIPAA-eligibles may be lower that what they can get underwritten. Since most people looking at HIPAA are probably not a "clean" app at standard rate, and may be a rate up (no way to know how much until the decision comes out of underwriting), an agent must consider the options since there is a very short window to fix a situation like this.

For me, simply follow what I always do, enroll in HIPAA first, then go back and get underwritten and see if I can get them a better offer premium-wise.

Just an FYI.