- 1,861
Maybe they realized they can rate a GI to infinity so why not offer comp since the GI business in gonna end up in a pool anyhow......
Cigna Will Pay Commissions on GI for CO
- Thread starter Crabcake Johnny
- Start date
- Thread starter
- #12
- 14,808
I don't believe they can rate GI "to infinity." I do not believe they can get their policies filed and tell the DOIs "Yeah, we're rating kids up to 800%." I don't think they can get that approved.
Somarco?
Somarco?
States have caps on rates for traditional biz. Will be the same for GI products. Also, Obamacrap already has a max rate range which will most likely be applied to kid plans.
In GA Aetna did have a max 50% rate up before decline. That was changed last year to max 100%.
Again, supports my contention that they can't set whatever rate they want just because it is GI.
As for setting $0 commission on a specific product, nothing illegal about that. I suspect the reason why Cigna reversed their position in a couple of states is for reasons other than legal told them they could not do it. They never would have announced $0 comp without first clearing it with legal.
Paying $0 is not going to have an effect on their loss ratio one way or the other. This is a move to minimize the number of GI kid applications.
Some carriers are filing new kid only plans, some have pulled kid only apps altogether and others are playing with waiting periods before coverage becomes effective.
Since they rolled over when Obamacrap was being shoved through Congress they are reacting now by coming up with ways to avoid writing this crap.
Watch for more tricks like limited networks with fewer docs & hospitals, tighter formularies and more penalties for failure to use generic Rx or the ER.
They might even take some tips from PCIP and require pre-cert for some drugs and diagnostic testing. That plan is such a mess there will be a LOT of complaints once it is put to the test. Quite a few holes, especially on non-par services and Rx.
In GA Aetna did have a max 50% rate up before decline. That was changed last year to max 100%.
Again, supports my contention that they can't set whatever rate they want just because it is GI.
As for setting $0 commission on a specific product, nothing illegal about that. I suspect the reason why Cigna reversed their position in a couple of states is for reasons other than legal told them they could not do it. They never would have announced $0 comp without first clearing it with legal.
Paying $0 is not going to have an effect on their loss ratio one way or the other. This is a move to minimize the number of GI kid applications.
Some carriers are filing new kid only plans, some have pulled kid only apps altogether and others are playing with waiting periods before coverage becomes effective.
Since they rolled over when Obamacrap was being shoved through Congress they are reacting now by coming up with ways to avoid writing this crap.
Watch for more tricks like limited networks with fewer docs & hospitals, tighter formularies and more penalties for failure to use generic Rx or the ER.
They might even take some tips from PCIP and require pre-cert for some drugs and diagnostic testing. That plan is such a mess there will be a LOT of complaints once it is put to the test. Quite a few holes, especially on non-par services and Rx.
- Thread starter
- #14
- 14,808
Right, I have to deduce that carriers can't simply rate kids after Sept 23rd without regulation.
If that were the case, child GI wouldn't be any cause for concern; "No problem, little Johnny is $3,850 per month."
Carriers fought for OEP's because they know they can only apply certain max ratings to child GI. On another note, I'm 0 for 6 with MD carriers as to whether full commission will be paid on family policies if the child(ren) have to go GI.
The across the board answer? "We'll get back to you."
If that were the case, child GI wouldn't be any cause for concern; "No problem, little Johnny is $3,850 per month."
Carriers fought for OEP's because they know they can only apply certain max ratings to child GI. On another note, I'm 0 for 6 with MD carriers as to whether full commission will be paid on family policies if the child(ren) have to go GI.
The across the board answer? "We'll get back to you."
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- 1,861
Obviously infinity was a bit tongue in cheek, but....
I have been told by one carrier rep here in SC that we should expect to see rate tiers for GI kids(NOT healthy kids, mind you) slightly above our state pool rates....mind you this is the biggest individual carrier in the state, and I got the impression that the plans will possibly be written off of an association/trust chassis which could possibly give some leeway with the state DOI.....
In SC it would only take about 400 - 600% rate up on a kids policy to get to the state pool rates. I do not think it is out of the realm of possibility for a carrier to implement this strategy....it is quite shrewd, really.....
A few months ago I was told that early rates in NC for Cigna were not that much higher than std but with a possible 150% rate up. I don't believe those rates were filed, it was just talk.
Regardless, the next few weeks will be interesting to see what unfolds.
Regardless, the next few weeks will be interesting to see what unfolds.
- 901
Here's what I love
This is from the gohealthinsurance.com site which is owned by my good friends at norvax. You know, the company that sells you leads, then redirects the same people to ehealth so they can sell a plan before you can make a call? yeah, those folks.
Anyway, they are big time in bed with ehealth now and have even "borrowed" this signature signage from ehealth.
I have seriously considered filing complaints against BOTH companies for using these inherently misleading statements.
Individual health insurance rates are NOT SET (or fixed) BY LAW DAMMIT.
Carriers have a lot of room to maneuver in most states without the approval of the Ins. Commissioner.
Of course, what they really mean to say is: you can't buy it cheaper anywhere else, so why not buy it here?
Why not just say that?
Hmmm, maybe that's what I'll say on our sites - ha ha
-------
Update:
Just saw this wording on ehealth:
Best Prices. Health insurance rates are filed with and regulated by your state's Department of Insurance. Whether you buy from eHealthInsurance, your local agent, or directly from the health insurance company, you'll pay the same monthly premium for the same plan.
That's pretty accurate and a marked departure from their previously misleading statements. Now if norvax will only start copying the new approach.
This is from the gohealthinsurance.com site which is owned by my good friends at norvax. You know, the company that sells you leads, then redirects the same people to ehealth so they can sell a plan before you can make a call? yeah, those folks.
Anyway, they are big time in bed with ehealth now and have even "borrowed" this signature signage from ehealth.
I have seriously considered filing complaints against BOTH companies for using these inherently misleading statements.
Individual health insurance rates are NOT SET (or fixed) BY LAW DAMMIT.
Carriers have a lot of room to maneuver in most states without the approval of the Ins. Commissioner.
Of course, what they really mean to say is: you can't buy it cheaper anywhere else, so why not buy it here?
Why not just say that?
Hmmm, maybe that's what I'll say on our sites - ha ha
-------
Update:
Just saw this wording on ehealth:
Best Prices. Health insurance rates are filed with and regulated by your state's Department of Insurance. Whether you buy from eHealthInsurance, your local agent, or directly from the health insurance company, you'll pay the same monthly premium for the same plan.
That's pretty accurate and a marked departure from their previously misleading statements. Now if norvax will only start copying the new approach.
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- Staff
- #18
Only if your a nase or United American agent.......then you......
Here's what I love
This is from the gohealthinsurance.com site which is owned by my good friends at norvax. You know, the company that sells you leads, then redirects the same people to ehealth so they can sell a plan before you can make a call? yeah, those folks.
