Carrier Strategy

[insuranceconceptscindy]

I just had an informative phone call with my rep at "insert large carrier here". She told me that they were going to attempt to keep new, individual, fully underwritten, business separate from the new mandated plans, come 2014.

So, that means that any of the business I write for them this year (and have written since 2010) will not be swept into the metal-ed exchange plans come 2014. They will continue to have what they originally purchased, at their current rate.

What I hear from other big carriers is that they plan to sweep their existing non-grandfathered business right into the metal-ed exchange plans, complete with huge rate increases and possibly different benefits.

"Insert large carrier here" is saying that they plan to use the President's words against him- "If you like the plan you have, you can keep it." Not, "you liked your plan, now here's the new and improved version of your plan because you didn't buy it in 2010. And here's your new doubled premium!"

Has anyone else heard of their carriers going this direction? What are your thoughts on the impact it will have post-HCR fully implemented?

 

[toddoxley]

Yes, I heard the same language used from our UH1 rep.. It is about time that a insurance company stand up to Obama...

 

[Yagents]

I believe what is going on has to do with new HHS guidance that states Non GF plans must conform to the list of EHB's (10 categories of medical care). The plans we sell today, cover 8 of them, but do not cover maternity and mental health. So, to add those 2 would not cause a HUGE rate spike (like adding prev care and no lifetime max). But if the carriers and their lawyers are reading they don't have to add all the other items to NON GF plans, then plans won't have that much of a rate spike come 1/1/14. Items like:

1. Meeting HSA OOP maximums
2. 3 to 1 age band ratings
3. Metal AV levels
4. Mixing Non GF plans into GI exchange pool

These 4 are the BIG cost drivers.

Exchange sold plans will have to conform to ALL items above. If so, we have a BIG opportunity to sell underwritten plans throughout 2013 before it's too late for the consumer.

From Cigna email
Reminder: Only non-grandfathered insured plans in the individual and small group markets (on and off the Exchanges) are required to provide EHBs. Grandfathered individual and small group insurance policies and all insured and self-insured large group plans/policies are not required to provide EHBs, but if they do, they may not impose any annual or lifetime dollar maximums.

 

[Ann H]

Yes, I heard the same language used from our UH1 rep.. It is about time that a insurance company stand up to Obama...

Likewise, I heard it from UH1. I received 2 emails, (one with a video) which I posted about on another thread. It used the President's words following the Supreme Court Hearing as the basis for believing "you can keep your plan". That's not very legally binding. If it was, we would be looking at 3000% rate decreases for "all 57 states". LOL. Also, the carrier uses words like "might" or "it may be possible to". There's not much substance. However, they seem to believe that we should sell underwritten plans like crazy now, in hopes that renewable IFP plans can continue renewing as is. I hope that will work. If not, at least UH1 gets a lot of 2013 business.

 

[toddoxley]

I have not found Cigna Individual medical to be very competative in Arizona, but interestingly we received a call from our rep giving us a heads up that they were discontinuing soon the sale of there individual product through independant agents and would only market the plan with a general agent / call center...

 

[Yagents]

I have not found Cigna Individual medical to be very competative in Arizona, but interestingly we received a call from our rep giving us a heads up that they were discontinuing soon the sale of there individual product through independant agents and would only market the plan with a general agent / call center...

Interesting.......because..........I just received a appointment termination letter TODAY for AZ only from Cigna due to non production for past couple years. Sorry, I just can't write the most expensive carrier in the state, can't do that to my clients. I wonder if this is part of a "cleaning house" to prep for the GA/call center? They kept my FL appointment, where I do write business as they are more competitive out there.

Todd, did they say you can sell through the GA? Or, are you being cut off also?

 

[taterpeeler]

Interesting.......because..........I just received a appointment termination letter TODAY for AZ only from Cigna due to non production for past couple years. Sorry, I just can't write the most expensive carrier in the state, can't do that to my clients. I wonder if this is part of a "cleaning house" to prep for the GA/call center? They kept my FL appointment, where I do write business as they are more competitive out there.

Todd, did they say you can sell through the GA? Or, are you being cut off also?

Wow...did they just show their hand.....no exchange biz for them

I have been very quite the last few days... I have a feeling something is going down and I just been taking it in... I got a theory

 

[AllenChicago]

I have been very quite the last few days... I have a feeling something is going down and I just been taking it in... I got a theory

Come on TaterPeeler. You posted to the forum 8 times today. Well, perhaps that is quiet for you, eh?

 

[oicu812nbama]

arizona opted for a federal exchange. cigna can market however they want, but independent agents will be able to enroll someone in their exchange plan. (from what i've read) i'm not claiming to be an expert on this mess

 

[toddoxley]

I was also received a letter cancelling my contract due to " zero" production. They are competative in Georgia where we have written them. Our Cigna rep ( Tucson based) told me that a GA named IHC or ICH was going to do all the marketing in AZ via a call center and not use agents anymore.