Anthem Blue Cross of California - 30% rate increase

[GreenSky]

I heard from my GA that Blue Cross of California was raising the premium on their Lumenos plan 30%. This applies for group policies. I think they came out with this plan within the past 18 months.

Other plans:

Blue Shield raised their individual HSA from 2005-2007 by 36%.
Health Net raised the Farm Bureau HSA 20% over last year's rate and I'm expecting another 10% in July.

Why should plans that effectively eliminate coverage for Rx for most clients and avoid paying for the "usual" stuff need such large increases? The carriers already know the percentage of people that exceed the deductible on their other plans. Are they too stupid to figure this crap out earlier (rhetorical question)?

HSA plans are the definition of insurance. Only insure what you can't afford. Now they are pricing themselves into "can't afford the insurance itself" definition. Let's keep the public pissed off about health insurance. Just what the democrats need!

Rick

 

[Soaringagent]

Do you sell a lot of HSA health insurance plans?

 

[Guest]

Why should plans that effectively eliminate coverage for Rx for most clients and avoid paying for the "usual" stuff need such large increases? The carriers already know the percentage of people that exceed the deductible on their other plans. Are they too stupid to figure this crap out earlier (rhetorical question)?

HSA plans are the definition of insurance. Only insure what you can't afford. Now they are pricing themselves into "can't afford the insurance itself" definition. Let's keep the public pissed off about health insurance. Just what the democrats need!

Rick

Rick is 100% correct and I agree with him completely. I read the press release as well and I don't buy it. This is greed. Nothing but plain old greed. And there is nothing anyone can do about it.... not you, not me, not any state legislature, not even god!

You wonder why people want to dump the carriers for single payor? It's all right here.

Al

 

[Mr. Bill]

Let's see...the reason why? They have stupid actuaries.

And yes, as a matter of fact, I do know a very stupid actuary that works for a major (did I say MAJOR) health care company. He is truly one of the dumbest people I've ever met.

I wouldn't chalk it up to greed, per se, for the healthcare companies. Greed is what is going on on Wall Street. Anyone who has an account with Merrill Lynch and the like should be wondering, how is that firm going to recover from billions and billions of losses?

It's called a mirror, stupid!

 

[LGilmore]

"Let's see...the reason why? They have stupid actuaries."

Yup and the math caught up with them.

Every plan under the sun works a certain way at a certain price. If you have too many claims, the math is blown, if you insure too many people the math is blown as well. If agents do too good a job selling a plan, the math is blown...

With any new plan the rates can go all over the board in the first few years.

 

[Dave020]

I heard from my GA that Blue Cross of California was raising the premium on their Lumenos plan 30%. This applies for group policies. I think they came out with this plan within the past 18 months.

Lumenos price points were experimental in California. New product in this market, untested actuarial exposure. This is not an 18-month old product, Lumenos has been around like 40 years, just not available in CA until Anthem merger.

Why should plans that effectively eliminate coverage for Rx for most clients and avoid paying for the "usual" stuff need such large increases? The carriers already know the percentage of people that exceed the deductible on their other plans. Are they too stupid to figure this crap out earlier (rhetorical question)?

What do you define as "the usual stuff"? Lumenos plans provide free, as in zero copay preventative care that covers all nationally recognized preventative care benefits. Also, deductible is set equal to coinsurance max on the maternity plans so there is zero coinsurance exposure on Lumenos maternity HSA plans (same with HIA and HIA+).

HSA plans are the definition of insurance. Only insure what you can't afford. Now they are pricing themselves into "can't afford the insurance itself" definition. Let's keep the public pissed off about health insurance. Just what the democrats need!

Rick

That is exactly why Lumenos has introducted the non-maternity product line. Reduces cost by elimination of the maternity benefit (actuarily determined to price for 100% utilization) and adds in coinsurance component (70/30) to buffer premium cost.

 

[Dave020]

I have a spreadsheet of the rate increase for this year, it averages like this:

Standard PPO portfolio - 13%-19%

HMO portfolio - 9%

Lumenos portfolio - 3000 HSA - 25%
1500 HSA - 31%
3000 HIA - 28%

 

[Ahnuld]

I have a spreadsheet of the rate increase for this year, it averages like this:

Standard PPO portfolio - 13%-19%

HMO portfolio - 9%

Lumenos portfolio - 3000 HSA - 25%
1500 HSA - 31%
3000 HIA - 28%

Ouch!

 

[insuremojo]

I was talking to Art Carls about this and he said new groups still have a 12 month rate guarantee.

I just had a group come on with the Lumenos plan at the beginning of Feb. and I was freaking out with the possibility of telling my new clients that their plans were going to increase! Luckily, I don't have to worry about that 'til next year.

Now, have to deal with everybody else's increases which totally sucks.

 

[Dave020]

I was talking to Art Carls about this and he said new groups still have a 12 month rate guarantee.

I just had a group come on with the Lumenos plan at the beginning of Feb. and I was freaking out with the possibility of telling my new clients that their plans were going to increase! Luckily, I don't have to worry about that 'til next year.

Now, have to deal with everybody else's increases which totally sucks.

There is always a 12-month rate lock on small group. 4/1 enrollments are going to be slow and a mess since eveyone and their uncle wants to beat the 5/1 rate increase. Focal renewal for April is extended to 4/18 (means you have until 4/18 to submit for 4/1 start dates).

Here's the part I don't quite get, and maybe someone can explain this to me. Blue Cross CA reduced rates on all but Lumenos on 1/1/08 (so groups held over from 12/1 starts to get the reduction for 12 months) and then cranked a major rate increase for 5/1/08. So, why reduce current rates in Jan just to bump them 13-19% in May? Teaser to pull more business?