Carriers Score with Low Premium Plans

[Duaine]

Consumers looking for a good deal on the exchanges are more likely to pick a plan from Coventry, Humana and WellPoint.

That’s according to Avalere Health, who, in new analysis released Wednesday, concluded that carriers offering low-premiums should gain 2014 market share through the exchanges.

“Consumers in exchanges, even those who qualify for financial assistance, are extremely price-sensitive,” said Caroline Pearson, vice president at Avalere Health. “Carriers who hit the mark on pricing are more likely to attract consumers. While carrier-specific enrollment data is limited, premium positioning looks like a good proxy for future market share.”

Avalere analyzed exchange data across 37 states.

Coventry had the largest share of its health plans priced competitively, with more than half priced at or below to the “benchmark” plan, which is the second lowest-cost silver plan, Avalere found.

Most (65 percent) of the 8 million consumers who enrolled in a health plan through PPACA’s exchanges chose a silver plan, according to government data. And virtually all of those enrollees (95 percent) qualified for a federal subsidy to help them pay for coverage.

Humana and Coventry — as well as the new co-ops — had the greatest percentage of their silver plan offerings priced competitively, according to the analysis. More than 60 percent of Humana’s silver plans included in the analysis were priced at or below the second-lowest cost silver plan in the region.

Overall, Blues plans have the largest number of competitively priced silver plans in the states analyzed, with 370 low cost silver options in 27 states.

“Securing enrollment in silver plans is critical for carriers establishing exchange market share,” said Elizabeth Carpenter, director at Avalere Health. “Looking ahead to 2015, we expect silver plans to remain the most popular given the link between the silver level and federal financial assistance, including tax credits and cost-sharing reductions.”

Carriers score with low premium plans | LifeHealthPro

 

[Happy Texan]

Why would Humana price any of its silver plans below the second lowest-cost silver plan?
If the second lowest cost silver plan is "better" than Humana's lower cost plan, the subsidy will make up most, if not all, of the "difference."
If not, is the savings worth it with Humana?
Don Levit

 

[Post Quartermaster]

Why would Humana price any of its silver plans below the second lowest-cost silver plan?
If the second lowest cost silver plan is "better" than Humana's lower cost plan, the subsidy will make up most, if not all, of the "difference."
If not, is the savings worth it with Humana?
Don Levit

Keep in mind, when submitting 2014 plans, carriers were in the dark on premiums.

 

[yorkriver1]

Coventry called me (?) the other day to confirm the requested effective date and premium on a plan originated through HC.gov, which to my knowledge had already been issued weeks ago, still, late for 4/1 eff. date, due to computer glitches, garbled transmission from HC.gov.
I have had no commissions from them yet. I have moved on, but will check with them from time to time to see how it's going.
They are available in a city about 1 1/2 hours from me, so through some referrals locally, I have written four or five.
Their coverage is excellent in network, which is 2 tier. One of my clients bought the gold plan with no subsidy through Marketplace for 18 YO child--beat group dependent rate. The child is in counseling, and the OV copay on PCP's, and, wait for it... mental health providers... is $0. Client is very pleased.
Aetna is the lowest premium in a narrow local area near me. I got appointed with them a month late, for that reason. Lots of commission/other slip ups, but not really worse than Wellpoint.