If they don't close it and "take the high road" they'll quickly get 0 new enrollments because they won't be competitive. Which is tantamount to closing the book anyway.
Closing a book of business
- Thread starter LewB
- Start date
If they don't close it and "take the high road" they'll quickly get 0 new enrollments because they won't be competitive. Which is tantamount to closing the book anyway.
If every company were prevented from playing that game they would be competitive.
There is nothing challenging about outsmarting DC. The critters there believe they are smarter than anyone else and their subjects stand in awe of their powers.
Every time DC passes a law or creates new regulations to "fix" a problem someone outside the beltway finds a work around.
Take tax laws for example.
In the 90's (before you were born) DC came up with a way to tax the rich by passing something like the Monopoly Luxury Tax. DC decided to tax the toys used by the rich in hopes of increasing their coffers. So a tax was imposed on "high end" boats, cars, airplanes, jewelry and furs.
Instead of raking in cash they practically killed the yachting business in Florida, the corporate airplane industry and so forth. The "rich" stopped buying items subject to the luxury tax. Two years later the luxury tax was repealed.
The insurance industry is only marginally smarter but they do know how to design products that LOOK like a good deal but really aren't.
Mega Life made a lot of money selling a junk indemnity plan and pawning it off as a no deductible major medical plan.
Golden Rule and others sold a "Saver" plan that was relatively rich in outpatient benefits but paid nothing for inpatient care.
MILLICO coupled with Art Williams to offer a plan that was supposed to kill off permanent life insurance and BTID to create a retirement nest egg.
Dental insurance, hospital indemnity, cancer and accident plans have made the Amos brothers a lot of money via privately owned AFLAC. Talk about a cash cow . . .
Carriers happily supported Obamacare because they thought they would get rich selling a product everyone HAD to buy. The didn't count on DC destroying the free market system and replacing it with a Fascist style system where private industry still existed but everything was controlled by DC.
As a result, over 90% of carriers offering under 65 health insurance (major med, not indemnity) abandoned the market leaving behind an oligopoly run by a handful of carriers.
DC is finally coming out from the ether and figuring out that the MA plans are costing them (us) more than the FFS plan that existed for years.
And nothing really changes, but the deck chairs are rearranged to make it SEEM like there is improvement.
What if agents were required to be transparent with clients? Ms. Brown, in a few years this book of business this book of business will be closed and the company will open a new book. What that means that the premiums will increse on the closed book will be 2-5 times the rate of the open book. 1if you are still in good health, no worries. You will be able to change to an open book. But if your health has changed you will be stuck with this plan at the higher price.
You may be thinking of the GI states where nothing is competitive plus the anniversary and birthday rule states where rates are high and commissions are low.
I do that with every prospect and I don't need a law or regulation to force me to do it.
straightnochaser
Guru
- 549
No, why would they?
Yes, they do. There are some old RPPOs around that are $150+ that are basically old $0 MAPDs from 2012.
straightnochaser
Guru
- 549
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