Aetna, Cigna Game Plan

[somarco]

The current issue of National Underwriter has execs from Aetna and Cigna throwing in the towel and declaring Obamacrap cannot be reversed.

That may or may not be true but it shows how ignorant they are about their future. Reading the article it seems to me they are betting on cleaning up in the Exchange, especially given their total disregard for agents.

Of course Aetna has the same attitude toward policyholders so one has to question why they even think they can be a player.

Perhaps they have not noticed how few carriers participate in states such as NY, VT, ME and MA with or without an Exchange.

And if you want a model of how well things work when you get into bed with the federal government, just look at how Medicare Advantage plans are working for carriers.

Home office execs are usually some of the dullest knives in the drawer and this move just proves it. Perhaps it would be the basis for a new reality show, America's Dumbest Insurance CEO's.

 

[HealthGuy]

Fricken great post, now where do we agents go from here regardless of what the retards at Aetna and Cigna concede to? Again, I'm not throwing in the towel untill there is no health plan left to sell....and of course working on contingency plans. Serious, what should we do, continue to hope for the reversal? Even if its reversed, will the entire bill be reversed. Just rhetorical questions. I'm kinda sick of it all personally and sick to death what this congress and president did but if its over eventually its over. Maybe my mindset is like Aetnas and Cigna? Am I part of the problem?

 

[somarco]

Hard to say Chad. For now I am staying put but moving in other directions as a back up.

Found this product called SA-8 that works wonders. Perhaps I can interest you in some . . .

 

[Crabcake Johnny]

Do we see any correlation between attitude towards agents/individual market from players who have not been in the individual market that long?

Aetna came into MD in 2004. I'm pretty sure the market did fine before they got here - certainly will do fine without them.

And if you're an agent giving Aetna a single piece of business at 4% or 6% 1st year comp - you're part of the problem.

 

[ABC]

I don't write any individual business with these carriers.

These decision makers in the ivory towers are clueless.
Wellpoint just fired some of their top leadership last week including the dumb ass that heads up the individual in Cali.

I personally do not think Cigna wants to be in the individual market. There bread and butter is large group.

It would not surprise me if the Aetna and Cigna pulled out of the individual market.

 

[medx]

The current issue of National Underwriter has execs from Aetna and Cigna throwing in the towel and declaring Obamacrap cannot be reversed.

That may or may not be true but it shows how ignorant they are about their future. Reading the article it seems to me they are betting on cleaning up in the Exchange, especially given their total disregard for agents.

Of course Aetna has the same attitude toward policyholders so one has to question why they even think they can be a player.

Perhaps they have not noticed how few carriers participate in states such as NY, VT, ME and MA with or without an Exchange.

And if you want a model of how well things work when you get into bed with the federal government, just look at how Medicare Advantage plans are working for carriers.

Home office execs are usually some of the dullest knives in the drawer and this move just proves it. Perhaps it would be the basis for a new reality show, America's Dumbest Insurance CEO's.

Good post, One has to wonder if some of thee carriers who seem to be going along ( giving in )on the front, are really behind the scenes, against it and not throwing in the towel ?

 

[SamIam]

Cigna doesn't do indiviidual market in Chicago and as far as Aetna I've wrote 4 policies over the past 7 years, that should say something about them to. So as far as I'm concearned neither of those carriers count for anything.

 

[somarco]

Before reading the NU article I did not think either of them would last until 2014 (IFP) and that may still be the case. I could be reading something into it that is not part of their game plan at all.

But the IFP market will be decimated once the Exchange is in place. Small group is probably gone as well leaving 50+ groups as the only real thing viable in 2014 and later.

Given that Verizon, AT&T, Deere and others have already started crunching numbers on cancelling health insurance altogether that probably leaves little for Cigna & Aetna to munch on. According to a Willis survey, about 6% of employers (500+) are already saying they may drop health insurance and 20% under 500 lives saying the same, this is not going to be fun times for carriers in the health biz.

I don't see anyone winning in this battle except perhaps the IRS that will be in charge of policing all this.

 

[ksigmtsu]

Do we see any correlation between attitude towards agents/individual market from players who have not been in the individual market that long?

Aetna came into MD in 2004. I'm pretty sure the market did fine before they got here - certainly will do fine without them.

And if you're an agent giving Aetna a single piece of business at 4% or 6% 1st year comp - you're part of the problem.

I took them off my website a long time ago, however I do plan to continue sending them morbidly obese smokers.

 

[bill3173]

I don't see anyone winning in this battle except perhaps the IRS that will be in charge of policing all this.

Government expansion of power wins. It's difficult for the average person to understand just how much this means to these people. Power means more to them than anything. The ability to control the citizenry in all things large and small is like dope to them, and this was one very large step forward in their quest for omniscience.

I stand by my conjecture that when all is said and done the number of uninsured in this country will increase. The mandate is not going to move the numbers, and with fewer agents marketing health and higher premium bumps, there you have it.