Call Centers in S. Florida Selling Limited Med

[ClearMind]

I'm very confused. South Florida has 10+ large phone rooms selling STM, Mini-Med exclusively. They're making millions. Some rooms even pay $1,000 weekly base plus commissions. They are all selling NON ACA plans.

I thought these plans were no longer legal to sell? Furthermore, why would an individual purchase these types of plans instead of an exchange plan with subsidy, which in many cases would cost just slightly more than limited med plans?

And what happens to these rooms when a client ends up not having all their expenses covered when they need it in the future? I have to imagine these sales operations have attorneys on staff, so I'm just really confused over this. If you don't know what I'm talking about, just go on C****slist, click on Florida, then S. Florida, then on Sales Jobs, then just type insurance, and you'll see a ton of phone rooms pop up that are selling these plans like crazy and have been for many years. They don't seem effected and don't care about ACA.

 

[houcoogster]

At the rate things are going with all this I'm gonna start selling those.

My pitch will go like this.

Mr. Jones do you want to pay $1000 a month to an insurance company and then have to pay another $6000 in up front medical costs out of your own pocket before the insurance company pays a dime? That's $12000 plus $6000 = $18,000 a year out of your own pocket before you have any coverage!!

OR........Mr. Jones would you rather spend $500 a month for a plan that has first dollar coverage and pay the measly fine?

 

[timsip]

You actually described why it is a good option in your post. "...why would an individual purchase these types of plans instead of an exchange plan with subsidy, which in many cases would cost just slightly more than limited med plans?" What about the segment that doesn't qualify for a subsidy and has to go from paying $100 per month for coverage to $300 per month due to Obamacare? A GR STM plan that may cost $125 per month still gives decent coverage that is more affordable than the Obamacare plan even after adding in the penalty.

Of course all of this is contingent on the plan having some level of quality.

 

[ClearMind]

But I thought these plans couldn't be sold? Then again, if that were the case I guess these plans wouldn't still exist. These call centers claim they have "the answer to Obamacare" and all the reps are making six figures. Makes me wonder as well. They're selling their limited plans in all 50 states without a care in the world. I guess this means they legally can???? I realize why they're selling these ($1,000 to $1,500 in advanced commissions), I just figured there would be a lot of liability in selling these old plans. I don't know, none of this makes sense anymore.

 

[houcoogster]

Come on guys..... I'm talking about a 55 Husband 55 wife and two kids 21 and 22 making 95K.

It ain't $100 or $300 a month anymore..........It's a grand a month!

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But I thought these plans couldn't be sold? Then again, if that were the case I guess these plans wouldn't still exist. These call centers claim they have "the answer to Obamacare" and all the reps are making six figures. Makes me wonder as well. They're selling their limited plans in all 50 states without a care in the world. I guess this means they legally can???? I realize why they're selling these ($1,000 to $1,500 in advanced commissions), I just figured there would be a lot of liability in selling these old plans. I don't know, none of this makes sense anymore.

Welcome to the Club!

 

[cadylou]

If they're not selling "insurance" then I think this is allowed. Short Term Medical is a different story from the mini-meds. In this market some carriers are not doing short term at all. Blue Cross is selling short term, but it is not guaranteed issue - still has minimal underwriting here & they say they can do that since it's not ACA compliant anyway. Mini-meds are probably being sold with a big disclaimer that this is "not insurance", but a reimbursement situation. Is that the way they are pitching it?

 

[houcoogster]

It's a contract between two parties. You pay me X dollars per month if Y occurs I will pay you Z dollars. Totally legal.

Example, a Hospital Indemnity plan, a Critical Illness plan and an Accident policy bundled together and BAM! You got it.

 

[HealthGuy]

Hoogsters dead on the nuts....Another case in point...I recently sold a husband/wife in their late 50s (who make over 62K subsidy cutoff) an off exchange plan...about $1,200 per month...that's over 12K in premium, add back in their 12K deductible and you have a LOSING health plan...24-25K oop per calendar year in expense and deductible before the plan covers anything...who really wants to sell losing propositions anymore...People who make an upper middle income DONT want this...the short term plans with accident, CI, and other goodies layered on top, when sold right will be winners in years to come. The American populations not gonna continue to buy Obamacare year after year after year...say these folks pay $1500 per month (easy to see next year)...the proposition is even a bigger LOSER....so what if the plan pays for a physical, etc....STILL a losing proposition...for the upper middle class Obamacare will rape their bank accounts for years to come.

 

[ClearMind]

They're calling it "Major Med" off exchange, STM, and Mini Med.

 

[cadylou]

Exactly Healthguy - I've already had many of my non-subsidy eligibles, who are currently keeping their pre-ACA style plans thru December of 2014, tell me that they will not make the switch to an ACA plan when the time comes. They plan on paying the fine and buying a short term plan as a safety net. Many of these folks will see their current premiums double & out here in the Midwest, 1500 per month is more than a mortgage payment in some cases.