Cigna Mailing - We Are on Your Side
- Thread starter Yagents
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Thanks for the insight, TaterPeeler. I've only seen Humana's Medicare Advantage because it's the only company that sells them in the Chicago metro area. I was (incorrectly) assuming that all Platinum, Gold, Silver, etc.. plans would be the same.. with premium being the primary differentiating factor.
Tell me, if all Silver plans sold on the Exchanges must carry a minimum set of Health Benefits, how would a company make their Silver better than the next company's Silver, without increasing the premium? Isn't that what you're saying will be the case, TaterPeeler?
-ac
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Ann, are you saying that people have the health plan that they have today because they like the company...and that the premium is not that important?
You would think that once the customer gets this letter, they'll freak out, go online to (or call) their exchange, find out what their subsidy $$$ amount will be, and then choose to stay with their current company, or go to another less costly company/plan.
Assuming that they'll simply accept the higher premium and sign/return the form without question is a stretch, in my opinion. Particularly if that premium is (as expected) at least 30% higher than what they're paying today.
Ann, with Premium hikes this large coming, I don't think loyalty will hold such a high priority as it might today. Particularly with Pre-Existing Condition exclusions being eliminated.
-Allen
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You have a valid point, Allen. However, people will be confused, and home base is comforting. Today, at renewals, most people just stay with the current carrier, and complain on the side. When they do re-quote, they usually find that the competitor's current prices are similar to their renewal prices. So, if it's a lateral move, they stay with the current insurer.
You said, "You would think that once the customer gets this letter, they'll freak out, go online to (or call) their exchange, find out what their subsidy $$$ amount will be, and then choose to stay with their current company, or go to another less costly company/plan." I think some of the more educated and computer literate might do that. But even now, most of my customers don't go to ehealthinsurance to get quotes, and if they do they don't give ehealth the sale. I don't see them going to the exchange online, nor getting through on a 1-800 number.
Yes, you're right, prices will spike and customers will seek a solution (which hopefully will be to call us!). But I don't see the price differential in or out of the exchange being that much different between carriers for similar plan designs. Even though I don't really think people have "loyalty" to an insurance company, they have trust and security in the decision they've already made. So, there has to be a good reason to give up that security, and I don't see premium differential being available for a similar plan design.
I think the plan designs will vary enough to drive competition. Networks might be different, too. Let's say you must buy a bronze plan or pay the tax/penalty, but the premium is whopping and you don't get a subsidy. Well, for about 60% of that premium you can get a limited network HMO or ACO or something. That could pick up some traction. And rich plan designs for those being subsidized, but who have serious medical conditions could pick up some traction. There is a lot of room for creativity in plan design, but not much room for price variance between insurers selling near-identical plan designs .
I think all of this will cause confusion and anxiety among clients who don't have active agents, and they are most likely to accept the suggestion of their current insurer.
Of course, I've been wrong before. (Don't tell my husband I admitted that.) This PPACA has met many twists and turns, and I think the tornado of public outcry is yet to come.
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The insurance companies will continue to tell brokers how much they love them until they find a way to get by without them. I do not trust insurance companies about as much as I don't trust government.
Predictions:
1.) Insurance companies, especially friends of the Whitehouse, will move out of the risk business and into the administration business once this all blows up.
2.) Brokers will be included until the Government/Insurance companies don't need us. Don't think for a moment that both Government and the Insurance companies will work together to eliminate us. Both have the same goal, just for different reasons.
3.) We will know what Exchange compensation levels will be at the very last moment. I predict they will be "OK" for the first couple of years and then go down once the Exchanges get some experience.
4.) Profits will soar in the first few years after 2014 for the Health Insurance Industry. After that, they will self-destruct. This will give the shareholders and upper management enough time to pillage the bank accounts and leave the debt and destruction to others.
Just my opinion from a very pessimistic broker with trust issues. LOL
Predictions:
1.) Insurance companies, especially friends of the Whitehouse, will move out of the risk business and into the administration business once this all blows up.
2.) Brokers will be included until the Government/Insurance companies don't need us. Don't think for a moment that both Government and the Insurance companies will work together to eliminate us. Both have the same goal, just for different reasons.
3.) We will know what Exchange compensation levels will be at the very last moment. I predict they will be "OK" for the first couple of years and then go down once the Exchanges get some experience.
4.) Profits will soar in the first few years after 2014 for the Health Insurance Industry. After that, they will self-destruct. This will give the shareholders and upper management enough time to pillage the bank accounts and leave the debt and destruction to others.
Just my opinion from a very pessimistic broker with trust issues. LOL
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I would guess that it will all come down to claims payments and customer service. BCBS will eventually have 95% of the market here in IL on this basis alone, assuming their systems don't go to hell once they realize it's unprofitable to process first and ask questions later.
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Neighbor Stuy119, Blue Cross of Illinois amazes me with how generous they have become in approving applicants. Their MedSupps covers any Medicare applicant age 65 to 100, without health questions and without a pre-existing condition waiting period.
I haven't had anyone turned down or rated for Under-65 BCBS-IL major medical since June 2011. If the applicant had prior health insurance within 63 days of their BCBS-IL application, their pre-existing conditions are covered from day one.
Their commissions were less than other carriers until Obamacare arrived. Then, everyone else lowered their comp to the same level as BCBS. Except Aetna.. they dropped all the way down to a laughable 4%.
-Allen
- Thread starter
- #19
For 2013, Aetna got rid of the 4% level. Everyone now starts off at 10%.........including IL
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