- 19,647
A More Logical Time-frame for MAs and PDPs?
- Thread starter Joe Moore
- Start date
- 11,997
A point worth mentioning is that when plans have members for a full year or at least most of it they have the ability to offer better benefits. Insurance works by spreading risk, not only by having lots of membership but having them for a longer period of time. The more members a plan has and they longer they have them gives them a more realistic view of what the loss ratios are and the ability to offer richer benefits. Not that it doesn't put some members at a disadvantage, but overall it creates better plans for everyone.
- 19,647
Yeah, I've heard that excuse from the companies before. What I have never seen is that very thing in practice. Can you give an example of a plan that is offering richer benefits for '09 than it did in '08 for the same premium as '08?
Just right here in my area, Humana cut benefits and increased premium. Pyramid cut benefits and increased premium. Coventry cut benefits and increased premiums. Sterling cut benefits and increased premium. Wellcare cut benefits and increased some premiums. I'm seeing a pattern here. Are you?
Thay may have the "ability to offer better benefits", but, they sure aren't using that ability. Humana did take their time to lobby CMS to cut writing agent commissions. Maybe that's why they didn't get around to enriching their plans?
- 11,997
I can't speak for all plans (or any of them really) but as far as examples of better benefits in '09 than '08 that's an easy one. Obviously it'll vary by market but in upstate New York Aetna had a plan last year that was $45/month and is now offering a richer plan for $22/month. That is happening in a lot of markets. If plans aren't able to keep clients for a while it would make the market even more volatile that it is now. There is also a delay between when plans figure out if they made or lost money for a year. Plans have to file in February for their plans for the next year. That means that before OEP is over they have to bid on their rates for the next season and they wont really know whether their current plan structure is profitable or not.
Some plans are definitely more broker friendly than others. Because things change so much by region it'd be difficult for me to answer you about exactly what's going on in each market, but as a trend lock-in helps. Another thing that everyone might like to know is that CMS limits the amount of money a plan can make, so if they are banking huge profits they usually either make the plan easier to sell by increasing benefits or bump up commission levels/agent costs. Some plans, like Cigna, HealthNet, Universal/Pyramid/American Progressive and others have programs to help split the cost of marketing with the agents. I believe that because of MIPPA we're going to see carriers expand those programs and create new ones in order to keep the agents producing. Carriers tend to listen more than agents realize.
- 1,240
not to go off the subject but has anyone noticed we have little green boxes off to the left under our screennames and date joined/state/posts - if you take your mouse and go over it, it says xxxx will become famous soon enough. I want Greensky's saying, it says Greensky has a spectacular aura about. Each one of us has this green box and they're different sayings, most of them say we will become famous soon enough. Has anyone noticed this???
- 19,647
You, obviously, are a company man. Lock in is good for one entity, the company.
As far as companies doing something for the writing agent, I'll believe it when I see it. Humana and Pyramid were huge behind the scenes pushers for the commission restrictions to the writing agents. The GA's, the FMO's and the companies did not have their pay restricted. Wonder why?
- 7,066
And the point of this thread is?
You all sound like CMS has asked us for out opinion and is going to take all of our suggestions under consideration and ultimately going to make changes based on what we think. WRONG!
The solution, rather than trying to juggle the dates, or make minor changes to the way things are being done now, is just to do away with all that crap.
Treat them like Medicare Supplement Plans.
CMS will listen to that suggestion just as quickly as any of the above.
This thread should have been titled "MA and PDP Fantasies".
You all sound like CMS has asked us for out opinion and is going to take all of our suggestions under consideration and ultimately going to make changes based on what we think. WRONG!
The solution, rather than trying to juggle the dates, or make minor changes to the way things are being done now, is just to do away with all that crap.
Treat them like Medicare Supplement Plans.
CMS will listen to that suggestion just as quickly as any of the above.
This thread should have been titled "MA and PDP Fantasies".
- 15,319
- 919
Those little green boxes are CMS microphones...
- 7,066
Frank:
You're just old and bitter!
Rick
Rick:
I just live in the real world, not in fantasy land. To discuss everything that is wrong with this crappy system is fine, but to enter into a debate about what should and shouldn't be changed is an effort in futility.
Next thing you know this thread will be moved to the Fight Club over who's changes are better. Ain't nuttin gonna happen regardless of what we think.
But, since you are such a "true believer" and speak to the all mighty on a regular basis, maybe your "prayers" will be answered. Just hold your breath, the answers to your "prayers" will appear to you momentarily.
I'm sure CMS is waiting for that "special agent" to come down from the mountain with a hand-full of flat rocks to get everything straightened out.
Maybe you are the chosen one, if so then I
.
