Employee Mutiny

[Ann H]

You have some very good insight, Bedlamins, and you may be right. Group insurance is tried and true, and it may be the very bedrock that continues if Obamacare falters.

ABC, I do think local economy plays a big role. Cost of living and wages in states like CA and NY for instance means a lot of middle class people won't qualify for subsidies. In states with lower cost of living, it's different. And you hit the nail on the head about blue collar industries and those in labor intensive industries with lower paid workers. Most of my groups happen to be IT Tech, Engineering, etc., so I am seeing very few of them that plan to drop the group plan immediately. Some will never do so.

Nonetheless, you can't overlook the fact that the 3 big reasons to have group insurance was 1) to have quality Fringe Benefits 2) Tax savings 3) Guarantee Issue. Now 1 out of the 3 big reasons is gone, and subsidies creates a new reason to leave group insurance.

 

[bluediamond]

It is going to depend on demographics, I can't see companies in Silicon Valley dropping group plans to retain employee's. The counties I primarily do business in, in the panhandle of Florida, well one of them is the poorest in Florida. I can safely say that all my groups under 50 originally put a group in because the owner or key person was uninsurable. One group of 25 has been calling weekly. He no doubt will let me write individuals and drop the group and most of his employee's will qualify for a subsidy. My groups under 20 are gone, they can't pay their monthly premiums now on time.

Oh I have one group that I never knew was making the employee's pay a 100% of their premium. All 8 had health problems at time of enrollment. I never knew he was making them pay 100%, which I told him he could not do, until last year and one employee called me and told me.

 

[stuy119]

It is going to depend on demographics, I can't see companies in Silicon Valley dropping group plans to retain employee's. The counties I primarily do business in, in the panhandle of Florida, well one of them is the poorest in Florida. I can safely say that all my groups under 50 originally put a group in because the owner or key person was uninsurable. One group of 25 has been calling weekly. He no doubt will let me write individuals and drop the group and most of his employee's will qualify for a subsidy. My groups under 20 are gone, they can't pay their monthly premiums now on time.

Oh I have one group that I never knew was making the employee's pay a 100% of their premium. All 8 had health problems at time of enrollment. I never knew he was making them pay 100%, which I told him he could not do, until last year and one employee called me and told me.

Is that Apalachicola?

 

[bluediamond]

If you're referring to the group I just mention location I spoke about, nope, Destin.

Or poorest county? Nope farther west
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Unlike different parts of the country I can only think of one group I have that the owner really wanted to do something good for employee's. I was really surprised when I started in the business down here in 1994 how many employer's in my area could care less about their employee's. Even physician offices with 5-10 employee's, the doctor would say "Why should I cover my employee's"? I just write their prescriptions and give them general checkup's. Hello, what the hell are they going to do if they need a surgery?

 

[ABC]

Ann, I agree 100%.

You take a company that avg salary is $89K and most employees have Computer Science Degree, they can not drop benefits.


A good barometer to use is current participation rate on the group health plan. If the group is barley meeting participation, that may be a good indication that they will drop.

 

[Ann H]

Ann, I agree 100%.

You take a company that avg salary is $89K and most employees have Computer Science Degree, they can not drop benefits.


A good barometer to use is current participation rate on the group health plan. If the group is barley meeting participation, that may be a good indication that they will drop.

That is an excellent barometer, ABC. Yes, plans with low participation indicate low employer contribution and/or low income employees who will now get subsidies. I agree. They will drop group.

A few years ago I made a decision to narrowly target certain types of groups. While others were going for blue collar, I didn't, partly because the competition was great for blue collar. Blue collar was a great market target at that time, but I just went left when others went right.

I suppose one of the reasons I migrated to being detailed about legalities is because a large number of my clients are in higher income industries with well-educated staff, like Engineers, IT Tech, Legal, Accounting, etc. I had to become detailed with that type of group client. That's a big reason why I'm seeing that my groups are saying they want to keep group. Looking at my group block, 5 have over 50 employees and the rest are small group. Out of the small group, I see that a large number are still grandfathered. This could make my experience quite different than another agents experience in whether or not groups drop coverage.

Of course, regional cost of living makes a difference too, as well as regional culture. Some regions of the country are just accustomed to getting their insurance from a mega-sized employer with union style benefits. East/West coast culture is different than midwest, southern and western culture when it comes to expectations like this.

 

[taterpeeler]

ann the reason you yinged when every one else yanged is because birds of a feather flock together. I have spoken to you several times on the phone and you are totally unlike the avg agent with that hyper all-out mentality.... you possess a doctor/engineering type personality but also have the ability to close and sell... very strange that someone has both of those traits and that's a credit to you.

most of those people are boring and couldn't sell a heater to an eskimo...... you have the sales "IT" and the all professional/proper traits...lastly, if you don't know ann she is peobably the smartest person on this forum

send me my 5 bucks

 

[Ann H]

ann the reason you yinged when every one else yanged is because birds of a feather flock together. I have spoken to you several times on the phone and you are totally unlike the avg agent with that hyper all-out mentality.... you possess a doctor/engineering type personality but also have the ability to close and sell... very strange that someone has both of those traits and that's a credit to you.

most of those people are boring and couldn't sell a heater to an eskimo...... you have the sales "IT" and the all professional/proper traits...lastly, if you don't know ann she is peobably the smartest person on this forum

send me my 5 bucks

Wow, with compliments like that, I'll send you $50. I'll have my limo driver bring it to you.

LOL. Hey, everyone - Tater is being nice and I appreciate it. But really, I chose not to sell aggressively right now, but rely on my book of renewals while I prepare for the next huge selling season. That gives me time to read and learn. Hopefully it will work out for me, but trust me I'm no smarter than the next agent. Just perhaps a little more intense! Okay, a lot more intense!

 

[Ronnie Carter]

If you're referring to the group I just mention location I spoke about, nope, Destin.

Or poorest county? Nope farther west
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Well, Blue, I used to sell life insurance there in the panhandle, primarily in Santa Rosa, Escambia, Walton and Okaloosa. Nice folks there and my wife loved the condo I rented on Navarre Beach...

For some reason, haven't been back down that way the last couple years. But would like to return.

The only bad memory was a lady doctor in Ft Walton Beach who did house calls and kept her own records (that was not a mistype). Transamerica ordered an APS from her on one of my life clients. Six months and two weeks to get the poor guy's records from her. That, by the way, is my personal record on APS's. He had to reapply once they got the records, and five years later still has his policy. I should have bought him a steak dinner or something to reward his patience.

I hope that piece of work doctor lady has retired.

 

[bluediamond]

A doctor doing house calls? Wow, maybe she couldn't afford an office, but I know in the past 5 years a lot of female doctor's in Ft Walton either quit, retired or moved out of Florida to do business.