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Without interfering with my brothers freedom of speech here, I would like to be counted among those who wish disassociate themselves from this comment.
No replies invited or necessary. Just sayin.
Anthem: The Poster Child for Reform
- Thread starter Winter_123
- Start date
Without interfering with my brothers freedom of speech here, I would like to be counted among those who wish disassociate themselves from this comment.
No replies invited or necessary. Just sayin.
- 10,275
Maybe they'll postpone their 30% increase here in Ohio as well.
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- #14
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And the longer a justified (assuming it is just for the sake of discussion) rate increase is postponed/denied, the less margin there is to support commissions in the long run. So forcing the rates down by federal fiat or bullying keeps the plans more competitive in the short run which seems good if you are commission based health insurance sales agent. In the long run, something has to give.
As noted we are in a socialist, top down driven environment now. My state is completely there. Everyone elses will be there soon. In that environment, the regulators just look at the profit of the company and decide what you can afford to charge for a premium, versus the current bottoms up system that looks at cost build-up and claims payout rations. Those days are over in my state and are on heart-lung machine elsewhere. California just created more attention than some of us wanted, the "intelligent design" theory notwithstanding.
Here is what is critical but does not fit on a bumper sticker: The commie regulators look at profits. They say rates are being raised all while the carriers are experiences record profits. Problem is, those profits are being driven the carriers investments as the market swings up, and not profits on the standalone insurance aspect. So, if we play this out (because it is going on right as we speak) the DOI denies rate increases because the carriers parent company is "too profitable" and leaves the premiums untouched. As stated, going on right as we speak in my state and next week in others.
So, perhaps the geniuses of the world can explain what that scenario looks like when the market or other investment dive again and the carries have no profitability from that source and yet premiums have not been raised year after year. Do tell how that works. Because it is coming.
As I mentioned a couple days ago it will force parent companies to distance themselves from the commies by spinning off aspects of their businesses so that the overall companies profitability does not accrue to the subsidiary. Problem with that is that you punish profitable companies with cash for becoming involved in health insurance. Thus making them more vulnerable and more dependant on the government to bail them out when they fail. The government will say it needs to step in because private capital is not available. Which is true they will have killed it.
Pivens-Cleavage theory incarnate.
Change you can believe in.
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I took the liberty (which I will definitely blog) of running a comparison of rates on like coverage between the four CA carriers (2 of which are not-for-profit) on myself. I ran rates inclusive of the Anthem rate increase (they were even better before the rate change). Here are the results:
1500 Deductible HSA Plan (or closest):
#1 Anthem Lumenos 1500 $243.00
#2 Health Net 2500 (closest) $246.00
#3 Blue Shield CA 1800 $311.00
#4 Kaiser 1500 HSA $349.00
3500 Traditional PPO (or closest):
#1 Health Net Value 4000 $179.00
#2 Anthem 3500 PPO $224.00
#3 Kaiser 3000 (HMO) $277.00
#4 Blue Shield CA Ess 3000 $352.00
$0 Deductible PPO/HMO RightPlan Clone w/comp Rx (or closest):
#1 Anthem RightPlan 40 PPO $358.00
#2 Health Net NetFirst PPO $383.00
#3 Kaiser HMO (closest match) $457.00
#4 Blue Shield CA Act Start 35 $504.00
1500 Deductible HMO
#1 Kaiser 30/1500 $365.00
#2 Anthem 1500 HMO $654.00
#3 Health Net 40 HMO $670.00
#4 Blue Shield CA Access+ $798.00
I think this says it all. I think Poizner is looking at the wrong Blue?
These are more traditional plans. I did not even get into the new Core Guard and Clear Protection plans by Anthem, which blow away anything on the market in CA price-wise (as does Smart Sense).
1500 Deductible HSA Plan (or closest):
#1 Anthem Lumenos 1500 $243.00
#2 Health Net 2500 (closest) $246.00
#3 Blue Shield CA 1800 $311.00
#4 Kaiser 1500 HSA $349.00
3500 Traditional PPO (or closest):
#1 Health Net Value 4000 $179.00
#2 Anthem 3500 PPO $224.00
#3 Kaiser 3000 (HMO) $277.00
#4 Blue Shield CA Ess 3000 $352.00
$0 Deductible PPO/HMO RightPlan Clone w/comp Rx (or closest):
#1 Anthem RightPlan 40 PPO $358.00
#2 Health Net NetFirst PPO $383.00
#3 Kaiser HMO (closest match) $457.00
#4 Blue Shield CA Act Start 35 $504.00
1500 Deductible HMO
#1 Kaiser 30/1500 $365.00
#2 Anthem 1500 HMO $654.00
#3 Health Net 40 HMO $670.00
#4 Blue Shield CA Access+ $798.00
I think this says it all. I think Poizner is looking at the wrong Blue?
These are more traditional plans. I did not even get into the new Core Guard and Clear Protection plans by Anthem, which blow away anything on the market in CA price-wise (as does Smart Sense).
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- Thread starter
- #17
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Oh, they are all being looked at now. Washington will make life rough for anyone who raises rates regardless of what the premium is. In the instance at hand, they will also use data such as you just presented to deny rate increases to others. "If Anthem can do it for that premium, then you don't need it." You may have just compiled the data needed to show Pelosi and Boxer and her spiritual kin in DC what the maximum premium should be in Calfornia (ie, it is whatever the current lowest one is).
This is not your fathers health insurance system anymore where you cost things out and let the market factors play out. They dont care about detail. They jare ust are going to go with what feels right to them and because they know what the right premium should feel like. Unfortuately the public is with them on this. If OPEC puts prices throught the roof you might be able to show that you have the lowest prices in town but the public still hates your guts.
Whole new mindset at play. More help coiming than you want. They know what the right number is for your commission too. It might take us twelve threads and five hundred posts to discuss it but Pelosi, Boxer, and Obama can arrive at the right number instantly based on their extensive business experience.
This will all actually work out fairly well for both agents and consumers for the next six months. Agents will be running around thinking everythng is groovy because the feds bully down any premium increases which just keeps everything affordable for your customers but your commissions have remained the same. Not gonna be that way for long.
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Commissions are a very small piece of the administrative overhead. Carriers that rely on agents may try to squeeze commissions but in doing so will shoot themselves in the foot.
I had a conversation with a home office guy at Golden Rule about . . . commissions. He had heard that one of their competitors was cutting renewal commissions (not true) and wanted to know what I had heard. This led to a discussion about their commission structure and he confided that if they were to roll out today brokers would never sign on with them. Or if they did, the business would only stay for a year.
As for the idiots in Washington, it seems their ego's will not allow them to drop this idea of health "care" reform any more than they will be able to truly stimulate the economy with anything more than government jobs. PresBO goes into hiding to sign the increase in the debt ceiling but vows in public to do something about the deficit.
Can you say two-faced?
Obama wants his image on Mt Rushmore and will stop at nothing to make a name for himself even if it means tearing down what was once the greatest economic machine in history. He is doing everything he can to stall the economy while at the same time sending jobs overseas. The government already insures half the population and can't control costs there but that doesn't matter. They want it all so they can screw up the other half.
With regard to the rates and profits, there seems to be a disconnect. When rates & premiums increase so do premium tax collections. When profits are on the rise so are income tax collections. You would think the cash strapped government bodies would be cheering on higher premiums and profits. This is especially true at the state level and for those in bankrupt Caleefornya you would think they would want to keep a lid on things and let the process work its' way through.
One other point. As Dave pointed out, profits and proposed rate increases are not directly proportional to the true level of competitiveness. It appears that the Anthem rate adjustment is just bringing them in line with the market. Of course anyone with even a smattering of business acumen would know this. Carriers don't propose rate increases solely to boost profits, especially if the increase results in a loss of market share.
When was the last time Washington turned a profit on our money?
I had a conversation with a home office guy at Golden Rule about . . . commissions. He had heard that one of their competitors was cutting renewal commissions (not true) and wanted to know what I had heard. This led to a discussion about their commission structure and he confided that if they were to roll out today brokers would never sign on with them. Or if they did, the business would only stay for a year.
As for the idiots in Washington, it seems their ego's will not allow them to drop this idea of health "care" reform any more than they will be able to truly stimulate the economy with anything more than government jobs. PresBO goes into hiding to sign the increase in the debt ceiling but vows in public to do something about the deficit.
Can you say two-faced?
Obama wants his image on Mt Rushmore and will stop at nothing to make a name for himself even if it means tearing down what was once the greatest economic machine in history. He is doing everything he can to stall the economy while at the same time sending jobs overseas. The government already insures half the population and can't control costs there but that doesn't matter. They want it all so they can screw up the other half.
With regard to the rates and profits, there seems to be a disconnect. When rates & premiums increase so do premium tax collections. When profits are on the rise so are income tax collections. You would think the cash strapped government bodies would be cheering on higher premiums and profits. This is especially true at the state level and for those in bankrupt Caleefornya you would think they would want to keep a lid on things and let the process work its' way through.
One other point. As Dave pointed out, profits and proposed rate increases are not directly proportional to the true level of competitiveness. It appears that the Anthem rate adjustment is just bringing them in line with the market. Of course anyone with even a smattering of business acumen would know this. Carriers don't propose rate increases solely to boost profits, especially if the increase results in a loss of market share.
When was the last time Washington turned a profit on our money?
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Anthem is my main carrier. I would say about 80% of my small group block and individual is with them.
They are telling me that they have gotten destroyed by the Cobra Subsidy. I am being told that the claims of over $100,000 or more has gone up over 300% because of the subsidy.
I don't know if what I am being told is true.
Once Anthem releases earnings then I will have a better idea.
This is a huge mess for me.
I have groups that are getting 36% rate increases.
They are telling me that they have gotten destroyed by the Cobra Subsidy. I am being told that the claims of over $100,000 or more has gone up over 300% because of the subsidy.
I don't know if what I am being told is true.
Once Anthem releases earnings then I will have a better idea.
This is a huge mess for me.
I have groups that are getting 36% rate increases.
Unless you have access to internal loss reports, public figures on earnings won't give you that kind of information. COBRA/ARRA is nothing more than a taxpayer subsidized national risk pool with the government taking none of the risk. Risk pools and HIPAA conversions are money losers all around.
The subsidy won't sink the carriers but it will have a spillover effect on other lines of coverage in their health portfolio.
Overall, carriers are getting killed on small group, individual and COBRA.
The subsidy won't sink the carriers but it will have a spillover effect on other lines of coverage in their health portfolio.
Overall, carriers are getting killed on small group, individual and COBRA.
