Have Small Group Break Ups Accelerated?

[ABC]

Nice catch on the cold call!

This has really become more common since 2008.

 

[DS4]

DS4, You make a very good point, however, based on what I've been told, this is a clean break-up. The employer is dissolving the group, and there is no employer subsidy. He simply cannot afford to pay for their insurance, but the good news is that they all keep their jobs, and I've heard no complaints from any of them.

It appears that they're all going to get approved. I know that this doesn't happen every day. Just happened to be a relatively young group. There are only 5 emplyees.

There's no law against an employer dissolving a group and asking an agent to speak to his employees, or at least none yet.

Under the current administration though, you never know. If the liberals could have their way, all non gov business activity would be illegal.

As long as the employer isn't writing a check to the ins co, you are fine.

 

[bill3173]

I don't know what the rest of you are experiencing, but since the question was raised, I've had two more small group inquiries that resulted in ind plans for those that could afford them, and the others were left to twist in the wind.

Can't really tell what the future holds for small group<10. It seems to be shrinking, but the group guy that I work some cases through says the opposite, which I really don't believe at this point.

 

[Innovative Ideas]

This thread is confusing me. Are we talking about employers dissolving group plans and letting everyone go individual without contributing? If the employer is contributing their is a nice little page on the individual application that asks if the employer is contribuiting any money towards the plan.

 

[bill3173]

If the employer is contributing their is a nice little page on the individual application that asks if the employer is contribuiting any money towards the plan.

No disrespect, but not sure which carrier or State that you're talking about. The only one that I have with that disclosure is Assurant. AMS had it as well, but they're now defunct in terms of new biz.

Not referring to the employer paying the premiums on individual plans, one of the posters introduced that topic, for whatever reason, the forum is open, so anyone can post anything. I meant "true" break ups, as in we're dissolving the group and how about help these peeps get coverage if they can afford it, if not they can sit and spin.

 

[VolAgent]

No disrespect, but not sure which carrier or State that you're talking about. The only one that I have with that disclosure is Assurant. AMS had it as well, but they're now defunct in terms of new biz.

Not referring to the employer paying the premiums on individual plans, one of the posters introduced that topic, for whatever reason, the forum is open, so anyone can post anything. I meant "true" break ups, as in we're dissolving the group and how about help these peeps get coverage if they can afford it, if not they can sit and spin.

Are the employers at least bumping up pay by a few hundred a month so it can be used towards premiums if the employee wants?

 

[bill3173]

Are the employers at least bumping up pay by a few hundred a month so it can be used towards premiums if the employee wants?

This may be done selectively, but the last (3) that I've had like this, it hasn't been disclosed to me, and the payment info. has come from the employee's account. Nothing for me to do but review it, and sent it off.

 

[Innovative Ideas]

No disrespect, but not sure which carrier or State that you're talking about. The only one that I have with that disclosure is Assurant. AMS had it as well, but they're now defunct in terms of new biz.

Not referring to the employer paying the premiums on individual plans, one of the posters introduced that topic, for whatever reason, the forum is open, so anyone can post anything. I meant "true" break ups, as in we're dissolving the group and how about help these peeps get coverage if they can afford it, if not they can sit and spin.

I am in VA and I am talking about every carrier. I have been trying to find any carrier that does not have that disclosure with no luck. Like you said, if they introduce the idea to move to individual and all you do is sign people up, you do not need to worry about how/if they contribute.

I have been running into this over and over again. I recently received in email stating something along the lines of, "I am going to dissolve the group plan and want to move to individual plans, I will then offset each employee with a flat dollar amount to help pay for the coverage."

Now I am in a difficult situation. I was not planning on disclosing anything about contributing or how they go about doing that. She brought it up herself, but I am now aware of her intents. Finding a carrier that does not ask this question would be ideal, but I have been unable to do so.

 

[jbage007]

And so what if the employer pays them extra to buy their own.

This is actually illegal. You could lose your license over this kind of crap.

The way the law works if the employer is contributing to premiums either DIRECTLY - OR - INDIRECTLY, it must be group insurance.

Best solution > set up a defined contribution plan (or cafeteria plan)

Or nothing at all, meaning no adjustment to income.

 

[Broker007]

Check with your State Laws. My best advice.