Associations

[Stonewall]

I haven't seen much about associations offering health insurance----but I do seem to remember reading a negative comment somewhere on these forums. What is the skinny regarding association plans?

Are some not for profit associations formed just to (essentially---I no it's against the law to make a group just to purchase insurance) offer insurance through a carrier they've partnered with?

Any info/experience is appreciated!

 

[somarco]

Some carriers issue plans thru associations more for convencience than anything. GR does it in most states and World does it exclusively.

But the reverse, where associations endorse plans, is more common place.

AARP does it. Several professional associations will endorse plans.

The plans offered are the same as clients can get direct or through and agent. Same plan, same rates, same underwriting.

The magic is in the marketing.

 

[HomeService]

Yes, it is against the law to form a group just for insurance purposes, however a few people got on here before and told me I was not correct about that, but let us discuss legit associations, a moment.

I have worked for a few big captives before, that when working with certain associations, let us say maybe a realtor association, or an "rv dealers association", or something, they would give a discount, roughly 20%, when members of the group were purchasing individual policies. Just for being dues paying members of the group, an "association group" discount was given on the premium. This was usually for disability or health policies.

I also have worked for major med companies where the client must join an assocition to even get the health policy at all. A lot of times, it's like $20-$30 per month extra on top of the major med premium.

 

[Stonewall]

I've come across an association that offers world exclusively. In order to get the plan, you must join the association and the fee is anywhere from 19.99 per month to 69.99 per month depending on the association plan.

 

[somarco]

World is only marketed thru the association. You are paid $0 on the association fee, and $0 on the admin fee.

Try to find another carrier to use.

 

[The Rabbi]

I don't sell plans with association fees over $3 or with an app fee.

 

[GreenSky]

AARP does it. Several professional associations will endorse plans.

The plans offered are the same as clients can get direct or through and agent. Same plan, same rates, same underwriting.

The magic is in the marketing.

Not quite true about AARP. Their major medical is through Aetna and while the plans are the same as their direct plans, the rates and underwriting are different.

Rick

 

[Stonewall]

So a $95 app fee is outrageous!

Is World competitive----or does that matter on your geographic location?

The association is about to start offering the Medlife 360 plan from Madison Life which is an IHC company.

David Keeler, former Pres. of Cornerstone is involved---don't know if that is good or bad?

They do help with leads----never had that before!

 

[TXINSURANCE]

United / GR is the only association plan I would consider for Health just due to the risk and liability.

United / GR has a huge financial backing I am not worried about them.

 

[somarco]

rates and underwriting are different

Better or worse?

Haven't checked them in a while. Didn't they use UHC before?

Truth be known, AARP is a giant agency, willing to put their stamp of approval on anyone that will pay them a kickback. Haven't seen anything from AARP that is clearly better than the market.

And . . . you are on your own when it comes to getting through underwriting and customer (no) service.