Associations

[GreenSky]

Better or worse?

Speaking only for California, AARP rates are higher than the same plan from Aetna direct, but their underwriting is easier, mainly because of the 5 year vs. 10 year question on the app. Their ht/wt tables are more lenient also.

When I compared the rates for a 50 yr old male for the HSA 5000 in Los Angeles County, AAAP was about 20% higher than the same plan directly from Aetna. But this needs to be balanced by the less restrictive underwriting. Might be a good product.

Also, I have been told that there are only 250 agents authorized to sell this plan currently but they plan to double it before the end of the year. All requests by consumers to speak with an agent is sent to the field. Depending on the area, there could be 1-25 leads per week.

AARP specifically states that agents are to do what is best for the client, even if it means using another carrier. This is what Aetna has stated so I'm simply being a reporter, and not giving my opinion.

Rick

 

[retread]

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!

This thread is more appropriate for the Employee Benefits forum, but I ask you how do you know it is against the law to form a group just to purchase insurance?

MEWAs are formed under federal guidelines to allow small business owners to self-insure. How is this any different?

 

[Dave020]

This thread is more appropriate for the Employee Benefits forum, but I ask you how do you know it is against the law to form a group just to purchase insurance?

MEWAs are formed under federal guidelines to allow small business owners to self-insure. How is this any different?

This is probably a state-by-state issue, however MEWAs are strictly prohibited in California, with the exception of 10 MEWAs that were grandfathered in in 1995. No new MEWA are allowed in CA.

 

[Senateguy]

Health Insurance companies don't create associations out of "convienience."

Its a scam. They do it so they can avoid state regulation on mandates and rate increases.

FACT is a front to keep the insurance commisioner out of their office.

ITs really not a good thing for consumers, but I do sell a lot of Golden Rule and think they have a solid product. It will interesting to see in Jan when United Health care ditches the Golden Rule name and comes out with "United Health One" if they go ahead and ditch the association and get state admitted.

 

[somarco]

how do you know it is against the law to form a group just to purchase insurance?

I don't know that it is against the law, but you will not find a carrier that will issue coverage to an association that has no clear purpose other than buying health insurance.

MEWAs are formed under federal guidelines to allow small business owners to self-insure.

Not exactly.

Do some research on MEWA's and come back.

MEWAs are strictly prohibited in California

Taft-Hartley plans are MEWA's. Does this mean no new T-H plans in CA?

Health Insurance companies don't create associations out of "convienience."

Its a scam. They do it so they can avoid state regulation on mandates and rate increases.

You miss the mark too.

Go back & try again.

 

[Dave020]

I have to assume if a T-H plan is a MEWA, it is prohibited in California.

This is directly from CA DOI:

"It is now illegal for MEWAs to form and to offer healthcare benefits"

"After November 30, 1995, no new MEWAs can form, operate or apply for CDI certificates of compliance"

All MEWA had to be granted certificates by that date, and only a few were granted (less than 10).

 

[somarco]

Taft-Hartley plans cover union members. Employers pay into the health & welfare fund which in turn provides benefits for their members.

IBEW (electrical workers) members will work for any number of employers, all of whom are required to contribute to the hour bank for health & welfare benefits. This fund meets the definition of a MEWA (multiple employer welfare association).

Most unions have probably had their plan for years and may in fact be grandfathered in.

PEO's are also MEWA's in the strictest sense. Presumably no new PEO's can offer coverage based on your post.