Cobra Subsidy

[ABC]

In my state the Cobra Subsidy has had huge loss ratios.
These huge claims are not having an effect on state pooling.
Which now is having an effect on small group renewals.
I am seeing about 10% added to renewals.

Obama and his Cobra Subsidy is now turned into a nightmare.

 

[dgoldenz]

Surprise.

 

[bill3173]

They didn't understand the current cobra system, before impelementing the new one. Nor do they have any understanding of group vs. individual policies, state regs, etc.

ABC, half of the people putting these things into place wouldn't even understand what you just said.

 

[ABC]

What are you guys telling your group clients that are getting 36% rate increases?

I am telling my clients that 10% of that is because of Obama.
People need to know.

 

[bill3173]

What are you guys telling your group clients that are getting 36% rate increases?

I am telling my clients that 10% of that is because of Obama.
People need to know.

Just had this conversation with one of my small group clients yesterday.

He told me that he just can't pay the increase. The only thing he can do at this point is double the deductible.

He knows who to thank.

 

[somarco]

COBRA has always been a money loser. Same for risk pools and HIPAA conversion policies.

But when you get two thirds of your health insurance paid for with Obamabux there is no reason to do anything else.

Anthem/Wellpoint released a study a few months ago on their loss ratio's since COBRA/ARRA. I don't remember the exact figure but seems like the loss ratio jumped somewhere around 40% and that is not a mature number yet. As I recall, figures were PLR not trended and lagged or incurred.

Poli-speak sounds good to the masses but to those who actually know this business all the talk is nothing but ignorance.

 

[moonlightandmargaritas]

I am telling my clients that 10% of that is because of Obama.

No no, you must be mistaken. Obama has repeatedly told us that his policies will bring costs down. Haven't you been listening?

 

[DS4]

COBRA is adverse selection at its finest!