Insurance Agent Forum

[ABC]

Ok
I have had 4 different sales rep's from 4 different carriers tell me that they are not happy with the HSA business.
They are telling me with the 100% co insurance plans that the high claims people after they hit there deductible are not practicing any kind of consumerisim.

The sales people are all pressing me to sell the 80% co insurance HSA plans. I don't like those plans because the savings is not enough to justify.

Is anyone else hearing the same kind of things from the carriers? If so what do you think of the 80% HSA plans?

[moonlightandmargaritas]

Originally Posted by ABC

Ok
I have had 4 different sales rep's from 4 different carriers tell me that they are not happy with the HSA business.
They are telling me with the 100% co insurance plans that the high claims people after they hit there deductible are not practicing any kind of consumerisim.

The sales people are all pressing me to sell the 80% co insurance HSA plans. I don't like those plans because the savings is not enough to justify.

Is anyone else hearing the same kind of things from the carriers? If so what do you think of the 80% HSA plans?

Who cares what the carrier's reps think? Are they providing the dollars to fund your compensation?

Forget 'em. Do what's best for the client.

[robliano]

I'm not sure that even makes sense, considering that both Golden Rule and Assurant will tell you that HSA's stay on the books longer.

Offer what you determined is right for the client, every time and you'll have no worries.

[somarco]

Most claims that breach the SIR go into some form of case management any way, so that argument does not hold water. If carriers are unhappy with 100% plans they will adjust the pricing accordingly . . . and watch HSA sales drop.

Just curious. Who are these mystery carriers?

[ABC]

Originally Posted by somarco

Most claims that breach the SIR go into some form of case management any way, so that argument does not hold water. If carriers are unhappy with 100% plans they will adjust the pricing accordingly . . . and watch HSA sales drop.

Just curious. Who are these mystery carriers?

United Health Care
American Community
Anthem Blue Cross & blue Shield (well point)

I do not like the 80% HSA plans. UHC is pushing a co pay plan on drugs after the out of pocket has been met on their HSA plans. Anthems HSA renewal are all double digit this year.

I was crushing the HSA sales the first couple of years they were introduced. Now in some cases I am sell a high deductible plan with co pays because they are cheaper than HSA plans and ther renewals are coming in at single digit.

I personally think the HSA plans are the best plans on the market for small group. From a claims standpoint once your out of pocket is met your good to go. Then the fact they kinda force everyone to take an active roll with their health care spending. It makes me mad with these reps come in saying that the blocks are all running bad.

[somarco]

Just a clarification.

Are you referring to group HSA's or individual?

If group, I understand what you mean. The group HSA price differential is not as great as with individual plans.

Obviously someone is wrong in their pricing. I just don't know who, but I suspect it is the group model.

Most of my group clients have copay plans.

Most of my individual clients have HSA's.

[ABC]

I am talking about group.
I would say about 1/3 of my group block is on HSA plans with 100% co insurance. It blows me away how these companies have changed their tune from just 3 years ago. 3 years ago it was the HSA is going to save the small group market.

Originally Posted by somarco

Just a clarification.

Are you referring to group HSA's or individual?

If group, I understand what you mean. The group HSA price differential is not as great as with individual plans.

Obviously someone is wrong in their pricing. I just don't know who, but I suspect it is the group model.

Most of my group clients have copay plans.

Most of my individual clients have HSA's.

[stuy119]

I've heard nothing of the sort. Probably 75% of my clients are on HDHPs, and are having lower rate increases (and a few decreases) than my clients on PPO/HMO plans.

I'm spending more time with them in the first year doing a quarterly education hour, but other than that, they pick up on it quickly and like to have the HSA available for other OOP costs.

I've also been pairing a 100% plan with the Colonial Life Hospital Indemnity plan, and working with a local bank to have the accounts set up with an employer contribution to cover a few of the first-dollar benefits we're taking away.

[ABC]

Since I posted this some things have changed.

The carriers now are desperate for any business. So they don't care what plan you sell. I still stand by the fact that the 80% co insurance plans need have more savings than just 11% from a 100% HSA plan.

You go from a 100% HSA $2,500 deductible to a 80% $2,500 deductible with a OOP of $5,000 there needs to be more savings than 11%. I think it should be closer to 20%.

I like it when the savings is enough to cover the additional risk for the employee.

Also the HSA block are relatively new even with 4 years and most carriers are still rating those blocks with traditional plans.