Carrier Strategy

[pahealthquotes]

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.

sounds like a recipe for failure. Never put all of your eggs in one basket.

 

[Yagents]

I see it as the first step in not playing in the AZ exchange, or off the exchange. Or, they plan on relying upon navigators only in the exchange, if they play.

What writing on the wall do you see?

 

[Ann H]

Cigna has a history of doing this. They are huge internationally, in many products. Health insurance, particularly IFP and small group is a drop in the bucket to them.

In AZ, they termed all small group about 20 years ago, then came back into the market about 10-12 years ago, then exited the market again about 2 years ago (well, actually they kept 1 $5000 deductible HSA and 1 HMO to keep a foot in the small group market). For IFP, they did much the same thing, keeping the same HMO for decades, then developing other products but not pricing them right. Clearly, they weren't really focused on this market. So, I expect them to stay out of the heat, lay low until the market focus clears up, then re-enter again.

I haven't received my letter yet, but I kept racing to the mailbox in great anticipation, LOL.

 

[ABC]

What I am hearing is Carrier Branding.

Wellpoint/Anthem is buying up anything that can help them brand. Recent purchase is 1800 contact lense. They are also creating minute clinics.

UHC is doing the same thing.

Both companies have stated they will be in the exchange but in limited markets. This tell me they are only going where they have the deepest network discounts. Wellpoint is developing narrow networks in my state.

I did find out a small regional carrier has opted to participate in the federal exchange. This was a shock to me because they are renting networks and are only in the northern part of the state.

October is going to be really interesting to see how all this pans out. As I have posted before, if we get paid for the exchange plans then this thing could turn out to be very good. I see 80% of the market (non Large Group) going to the exchange.

 

[Ann H]

I see 80% of the market (non Large Group) going to the exchange.

It will be a lot less than 80%. Look at this Kaiser map, and enter your zip code, and it will tell you how much of your population is within 400% of FPL, and were uninsured or purchasing insurance in 2010. My zip code is 18%. The CBO estimates 25 million people by year 2016 will enroll in the exchange.

Mapping the Effects of the ACA's Health Insurance Coverage Expansions - Kaiser Health Reform

 

[Yagents]

.

October is going to be really interesting to see how all this pans out.

We'll know who WANTS to play by the April 30th deadline for carriers to submit plans.

 

[Ann H]

I've been disinvited to the party too. A few moments ago, I received my Cigna contract term letter.

 

[SportsNut]

It will be a lot less than 80%. Look at this Kaiser map, and enter your zip code, and it will tell you how much of your population is within 400% of FPL, and were uninsured or purchasing insurance in 2010. My zip code is 18%. The CBO estimates 25 million people by year 2016 will enroll in the exchange.

Mapping the Effects of the ACA's Health Insurance Coverage Expansions - Kaiser Health Reform

Interesting little database. Frankly I find these % numbers to be way off... my area is 19%, and there is NO WAY that I believe this number. You could swing a dead cat in any direction and hit hundreds of ppl that would fit the criteria... unisured... and the area is not that big. I have no confidence in the koolaide that they are selling.

Furthermore, I wonder what the net-net-net result of all this will be, say three years following ACA Dec 2016, as to the number of ppl insured compared to the numbers prior to the passage of ACA? I guess time will tell. My guess is after the mad scientist has muddled with the concoction here, the overall effect could be fewer ppl insured than 2010 levels. And for those that are insured their net spendable discretionary income will be lower, due to higher oop premium costs, boding poorly for the economy overall. Just a hunch.

 

[AllenChicago]

Speaking of "Carrier Strategy", the Blue Crosses owned by Health Care Services Corporation (BCBS-Illinois/Texas/Oklahoma/New Mexico) will soon be calling existing Small Group members and Individual policy members. It's an attempt to capture up-to-date e-mail addresses, cell phone numbers, SMS authorizations, etc..

Here's a link to the page that describes the campaign:
http://www.pages02.net/hcscnosuppre...1&spJobID=313332482&spReportId=MzEzMzMyNDgyS0

Is this just an innocent campaign to update customer information for Blue Cross's records, or is this advance preparation for some unilateral action later in the year? Due to recent unpleasant rumors surrounding this company, I really don't like the timing of this "reaching out" initiative.
ac

 

[somarco]

I don't believe the numbers either, but if they are expecting only 25M in HIX by 2016 there are going to be a ton of folks left out that will not be able to afford health insurance outside of HIX.

What are the numbers now? 50M have IFP? 70M?

My guess is 70% or more will not be able to afford health insurance without a subsidy.

We are going in the wrong direction.