Carrier Strategy

[AllenChicago]

Unless Queeny Sebelius forbids it, our agency is going to focus on continuing to sell HSA (Non-QHP) and advising clients to pay the 1% AGI penalty the first year and 2% penalty the second year. By 2016, cost and public anger should make this awful beast extinct.

 

[Ann H]

That's a good focus, especially if you are working with clients above 400% FPL. But.... where will you find a Non-QHP HSA in 2014? Is that like an "near HSA" sold by the same carriers who want to market a "near MM"?

There are some other difficulties with that. If the client makes $300,000, for instance, a 2% penalty is $6,000 on top of their premium for the HSA. They might just prefer to buy a QEHB metal-tier plan outside the exchange.

If they prefer not to buy a metal-tier QEHB plan, they can get out of the penalty for many reasons, including if the lowest priced bronze plan costs more than 8% of AGI. However, 8% of $300,000 is $24,000, so that might not work. Well, on second thought, maybe the lowest priced bronze plan will be that high.

 

[AllenChicago]

That's a good focus, especially if you are working with clients above 400% FPL. But.... where will you find a Non-QHP HSA in 2014? Is that like an "near HSA" sold by the same carriers who want to market a "near MM"?

There are some other difficulties with that. If the client makes $300,000, for instance, a 2% penalty is $6,000 on top of their premium for the HSA. They might just prefer to buy a QEHB metal-tier plan outside the exchange.

If they prefer not to buy a metal-tier QEHB plan, they can get out of the penalty for many reasons, including if the lowest priced bronze plan costs more than 8% of AGI. However, 8% of $300,000 is $24,000, so that might not work. Well, on second thought, maybe the lowest priced bronze plan will be that high.[/quote]

The vast majority of our clients are small business owners who's personal AGI is +400% of FPL, because that is who our in-house telemarketers have targeted for the past 7 years. OK.. forget the word HSA, because 80% never seem to get around to setting up the Health Savings Account anyway. If $10,000 deductible health plans are still allowed, that is what we will continue to sell. (With Injury, Critical Illness, Life, Disability as appropriate add-ons.)

Ann, I agree that once personal AGI reaches a certain level, the client in question is better off simply getting a QHP. However, most of our agency clients are in the $75k to $150K range...in a good year.
-Allen

 

[Ann H]

My book is similar. I have a lot of small business owners, too, and they won't get subsidies. Some of their employees will, and some of these businesses will drop the group health insurance. However, the owners and upper level employees wont get subsidies, yet they can't afford the premiums we are seeing. There must be a solution for them, or the new "uninsured class" will be the college educated career folks, upper middle class and job creating business owners.

 

[0b1kanobee]

I just happened to sit in on an agency owner meeting for that colored company (I was there to say hi and was invited to stay). I saw about 10 to 12 slides that were supposedly days ago being presented up their the day abouts Gov. Scott said he was going to approve all that Medicaid money from the Feds.

The charts indicated that they were intending to go after those getting subsidies and ALSO subsidies in addition to pay for things within the policy like copays, medications, ect. (all kinds of subsidation going on).

Now one of the agency owners around here was just up their with the goberment. He came back and told his top agents that they could plan on tripling what they made last year. This guy is not one to BS about money. And by triple, the one guy just got a $23,000 MA renewal check and the other guys was over $60,000 (Interestingly they all get paid for their renewals in advance all at one time for the whole year vs. monthly).

I see a lot of opportunity for Critical Illness and Accident plans and I see it for the ones who are priced out of the market or don't participate. We live in a "have to keep up with the Jones society" so I see folks wanting to be sold something so that they can have something. After all it wouldn't be really such a joke anymore that poor people have better healthcare than you.

I've already got a few prospects who I have talked to that don't have health insurance. When I let them know that this low-life guy over here is gonna have better healthcare than them, they all want to get theirs too (they won't get a subsidy) because this time the joke is for real.

 

[taterpeeler]

I have a long time friend in the biz who is a large marketing agency owner that is developing an off exchange non compliant plan with limits somewhere round 500k limit... Says they are waiting to get the drug card assurances done and expects this somewhat limited plan approved and moving in late sept... I told him to blow off the rx card and move it to the scene no later than aug 1.... Says comp will be old school

If all this pans out I'm in.... Oh, it not a belly button to belly button plan, it will be sold online..... I will advise if it works

 

[AllenChicago]

Does Queeny Sebelius/HHS's new ACA authority give her the legal ability to demand that non-QHP plans not be sold in America, or, to limit their scope so severely that no one would want to purchase a non-QHP?? This is what concerns me, because as Kansas Insurance Commissioner in her past life, Sebelius must understand that these methods for bypassing the expensive QHPlans are under development and will be embraced by the healthier class.

The National Marketing VP of one of the companies that's developing non-QHPlans for sale later this year said today in a conf call that HHS doesn't have the authority to limit what's sold outside of the Exchange by health insurers not participating in an Exchange. This is the same dude that emphatically pronounced in 2009 that the Federal Government would never get away with placing profit restrictions on American free-enterprise insurance companies..(chuckle).
-ac

 

[somarco]

I see folks wanting to be sold something so that they can have something.

Interesting observation.

Can't say I agree with it, but interesting none the less.

Does Queeny Sebelius/HHS's new ACA authority give her the legal ability to demand that non-QHP plans not be sold in America, or, to limit their scope so severely that no one would want to purchase a non-QHP??

She is no different from anyone else in this administration. They simply assume authority until someone challenges them.

HHS has no legal authority under Obamacare or anything else to define policy provisions and set or approve rates. Hasn't stopped them so far.

 

[HealthGuy]

Peeler would you call this 500K max capped plan a mini medical ? LOL

 

[taterpeeler]

Peeler would you call this 500K max capped plan a mini medical ? LOL

NO.... I would call it a limited benefit health plans that yahoos like you and allen would call mini meds........

and don't call me this early in the morning again... u woke up the dog.....