Competition in the Market

[Bitnis]

Not sure where I'm going with this but it seems that BCBS has no competition in the state of NC. I spent way too much time comparing plans yesterday and BCBS wins hands down.

IMHO the government cannot do the job properly so that's not the answer. I would be very afraid to see what the health care system would turn into if the governemt got compete control. At the same time though, BCBS has got a lock down on this state. I guess when you have the numbers that they have in a particular area you're able to take advantage of economies of scale.

So as a resident of the state of NC I have choices but they all seem to be the same except one beats all the others on price and benefits and as such have created a near monopoly in the market.

I can choose not to shop at Walmart or BCBS which is a good thing. But if I want to get the biggest bang for my buck then there really is no competition. And I don't see anyone knocking Walmart off the block in my lifetime. Maybe we need to take the monopoly thing a little more serious so that we don't give the government reason enough to step in and take over.

 

[Winter_123]

Not sure where I'm going with this but it seems that BCBS has no competition in the state of NC. I spent way too much time comparing plans yesterday and BCBS wins hands down.

IMHO the government cannot do the job properly so that's not the answer. I would be very afraid to see what the health care system would turn into if the governemt got compete control. At the same time though, BCBS has got a lock down on this state. I guess when you have the numbers that they have in a particular area you're able to take advantage of economies of scale.

So as a resident of the state of NC I have choices but they all seem to be the same except one beats all the others on price and benefits and as such have created a near monopoly in the market.

I can choose not to shop at Walmart or BCBS which is a good thing. But if I want to get the biggest bang for my buck then there really is no competition. And I don't see anyone knocking Walmart off the block in my lifetime. Maybe we need to take the monopoly thing a little more serious so that we don't give the government reason enough to step in and take over.

Okay but we have to be careful to not call something a monopoly simply because it has a large market share. In some instances it applies and in some it doesnt. You have to look at the facts to see whether others are locked out of a market or simply not as competitive. This was the go-around that microsoft had with government. The governent tried to argue that microsoft had a monopoly due to its marketshare. Microsoft argued that there were plenty of competitors there and no one is locked out. Customers simply prefer microsoft. Maybe next year they will prefer something else.

Similarly, there are a few hundred types of soft drinks out there and no barrier to anyone starting up another one. But if it turns out tomorrow that 95% of people want pepsi then so what. That does not make it a monopoly. Home Depot might look like a monopoly one year. The next Leowe's is biting their butt. McDonald might be absolutely huge but it has plenty of competition and so does Walmart.

Not saying that we dont need to watch out for monopoly especially in instances where government rules create them which is characteristic of socialist governments.

 

[Bitnis]

I agree that in a free market you will have winners and you will have losers. Somebody has got to be number one and that's the way it should be. From a consumers perspective I might as well jump on board with BCBS because I've been paying too much for a long time now. From an agents perspective it's not so easy.

I don't know the situation with BCBS and their agents here, but from what I understand, they aren't looking for any new agents. And if they are, I THINK you will be exclusive to BCBS. If you're okay with that then so be it. This may be coming to your market with or without the government involvement. We have a near monopolistic company here who is in the position of calling the shots.

Still don't know where I'm going with this but it's given me a little perspective on the situation locally. People love their BCBS here and now I know why.

 

[ins.dave]

Not sure where I'm going with this but it seems that BCBS has no competition in the state of NC. I spent way too much time comparing plans yesterday and BCBS wins hands down.

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Tell me you're not talk'n indie?

 

[Clint]

"I agree that in a free market you will have winners and you will have losers. ..."

But, as in the winners/losers in a free market the government used it's prowess to underwrite losing banks to allegedly save the economy. How many billion was spent and to what end? Those that cashed the checks on leveraged houses (e.g. the 520 score getting a house they couldn't afford), then the market repackaging these as A rated bonds....greed is contemptuous, in those aspects. To those that lost their houses, that is free market, that the banks (major) were allowed to be bailed out; not so much. Of course this will/can be debated an infinitum about savings of jobs/economy/etc.... (my two cents and worth every bit you paid for it)

To that end, e.g. BCBS if you can't beat 'em, join 'em! (or try too)

 

[Bitnis]

ins.dave: what are you talking about?

Clint: You are absolutely right. The little guy is subject to the market while the guys at the top are not. So is this truly a free market? I do not think so.

 

[Rivers1]

BCBS of North Carolina is the most expensive coverage in the state. They've been around forever here and are a household name, but, they are the worst when it comes to customer service. BCBS of NC is too big for their own britches. They could careless if you drop them because in their minds they know another sucker is just around the corner signing up.

The client's number one discontent is cost, followed closely with paying claims after an extended period(6mths to a year later). Third is customers can never get a live body on the phone. I use to have their Blue Advantage plan myself until I was priced out even though I never had a claim.

What companies are you presenting if I might ask? I replace BCBS every day and feel great doing so, knowing I did the client justice.

 

[Bitnis]

Rivers1, I just priced out copay and HSA plans for a 20, 30, and 40 year old family. I compared features and especially the RX benefit. I compared BCBS to World, Golden Rule, Humana, and Wellpath.

I don't know where you come up with BCBS being more expensive. Everyone's discontent is price in my opinion. Prices may be differnet in your area but in the Charlotte area BCBS is the best deal up against the carriers I mentioned. I wouldn't doubt at all though that their customer service SUCKS. I'm sure they are at the point that they take business for granted.

Try this one: Mother and father are each 30 years old. They have two kids, an 11 year old son and a 1 year old daughter. Non smokers and no rate ups or history. BCBS has them at $436 per month on plan B with a $3500 deductible and another $3k max out of pocket.

You show me the value in switching someone with that one and I'll take you out to lunch! The 20 year olds came out close with World but the advantage looks like BCBS if you have a young one because of the lower copays. I'm the forty year old family so feel free to take a shot.

It's pathetic but my GA or MGA whatever he is, is an independent in NC not appointed with BCBS but is insured with them.

 

[Rivers1]

Try this one: Mother and father are each 30 years old. They have two kids, an 11 year old son and a 1 year old daughter. Non smokers and no rate ups or history. BCBS has them at $436 per month on plan B with a $3500 deductible and another $3k max out of pocket.

It's pathetic but my GA or MGA whatever he is, is an independent in NC not appointed with BCBS but is insured with them.

I'm also in the Charlotte area. When I see a lead come in with BCBS I jump all over it! I write 90% HSA plans so I'm always going to come in with a better price. People who have BCBS want the $20 copay. I squash the copay reasoning, unless the client has "copayitis" and that's what they desire.

Your scenario above, is that 80/20, any cap on yearly RX or outpatient procedures, or any other restrictions? What's the zip code? BCBS has like 5-7 tiers in underwriting so it's hard to gauge a plan until the final decision is made. Also, most family plans have 3 deductibles and coinsurances with a 10K max out of pocket. Just a generic quote from one of the carriers I use based on the info you provided: HSA, 5K family deduct at 100%, $380/mth. My philosophy is to sell value and myself, not price, which goes way beyond what BCBS practices.

My own personal experience with BCBS. At age 35 I took out the Blue Advantage plan, cost 210/mth. I'm very healthy and was on the plan until age 39, last year, when the yearly rate increase letter came in October. Birthday is in December. So, the letter states my new rate wiould've been 465/mth for just me, no claims ever filed. Last years rate hike would have been 24% above the previous year. They love to get you in with what I call the "teaser rate", then stab you with excessive increases.

Have you asked your GA why he doesn't utilize BCBS since it's the #1 carrier in the state? There must be some reasoning behind it.

 

[DavidD1]

Not sure where I'm going with this but it seems that BCBS has no competition in the state of NC. I spent way too much time comparing plans yesterday and BCBS wins hands down.

IMHO the government cannot do the job properly so that's not the answer. I would be very afraid to see what the health care system would turn into if the governemt got compete control. At the same time though, BCBS has got a lock down on this state. I guess when you have the numbers that they have in a particular area you're able to take advantage of economies of scale.

So as a resident of the state of NC I have choices but they all seem to be the same except one beats all the others on price and benefits and as such have created a near monopoly in the market.

I can choose not to shop at Walmart or BCBS which is a good thing. But if I want to get the biggest bang for my buck then there really is no competition. And I don't see anyone knocking Walmart off the block in my lifetime. Maybe we need to take the monopoly thing a little more serious so that we don't give the government reason enough to step in and take over.

With 3 agents doing business in NC...not writing BCBS you may want to re-think your position...Price is one thing, but cost is another.

BCBS customer service is ALWAYS under fire. You can only count on them helping when you want to add a person or increase your coverage. It has been said they use the 90/10 marketing rule....Ignore 90% of initial calls/complaints and 10% will never call again.

Our agents are hired to sell themselves, sell the service others refuse to provide then sell the product. Clients consistently pay 1-50 per month more for good-consistent service. In almost every instance we replace them, the client does not know their agent and has not heard from them since the sale. They are one of our easiest to replace.