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Hawaii’s Obamacare Insurance Exchange Closing Down at Cost of $205 Million
- Thread starter Tkruger
- Start date
The term "clusterf&@!" comes to mind.
Put it in perspective.
Hawaii has a population of 1.42M people.
They spent 205M on building / advertising the exchange.
They expected 100K to sign up.
That boils down to $2050 per enrollment, in administrative costs to get them to sign up. This cost has NOTHING to do with providing insurance.
Even with this, they apparently didn't get their 100K signups. I can't find total numbers, but as of 4/1/2014, they had about 8% of this goal. Heck, lets say they hit 20%, or 20,000 signups.
That means the cost per signup is $10250.
What agent here wouldn't signup people (that are subsidy eligible) for a commission of $10K? Not really a fair comparison, but it does seem to make the 15/20% type of rule seem a bit ridiculous when the very people who came up with it violate it so drastically.
Oh yeah, that 10K commission is paid up front, in case you have some marketing expenses along the way
Dan
Hawaii has a population of 1.42M people.
They spent 205M on building / advertising the exchange.
They expected 100K to sign up.
That boils down to $2050 per enrollment, in administrative costs to get them to sign up. This cost has NOTHING to do with providing insurance.
Even with this, they apparently didn't get their 100K signups. I can't find total numbers, but as of 4/1/2014, they had about 8% of this goal. Heck, lets say they hit 20%, or 20,000 signups.
That means the cost per signup is $10250.
What agent here wouldn't signup people (that are subsidy eligible) for a commission of $10K? Not really a fair comparison, but it does seem to make the 15/20% type of rule seem a bit ridiculous when the very people who came up with it violate it so drastically.
Oh yeah, that 10K commission is paid up front, in case you have some marketing expenses along the way
Dan
You seem to forget the counter position:
"The $205M created thousands of jobs that spilled through the economy. Tax the rich and redistribute through gov't programs" (The left's version of trickle down economics.)
And, this puts a little more pressure on SCOTUS. Coerced good timing? I know others are abandoning their SBE's too.
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And a little push from HHS/CMS telling SBE's to get out of the biz
ObamaCare official: Creating state exchange is 'very, very complex' | TheHill
"The $205M created thousands of jobs that spilled through the economy. Tax the rich and redistribute through gov't programs" (The left's version of trickle down economics.)
And, this puts a little more pressure on SCOTUS. Coerced good timing? I know others are abandoning their SBE's too.
----------
And a little push from HHS/CMS telling SBE's to get out of the biz
ObamaCare official: Creating state exchange is 'very, very complex' | TheHill
And yet the law was originally set up to encourage states to create exchanges.
I heard California is a tad bigger than hawaii
Amid slower growth, California's Obamacare exchange cuts proposed spending - LA Times
Amid slower growth, California's Obamacare exchange cuts proposed spending - LA Times
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There are some fascinating numbers in this article...fascinatingly ridiculous!
The Covered California exchange has burned through a BILLION U.S. taxpayer dollars, and it's just one state! Healthcare.gov, the exchange for 36 states, has spent "only" about $835 million dollars.
Every person who buys a Covered California policy has a $13.95 MONTHLY surcharge ($167 annually) built into their premium..which is more than some premiums after the subsidy is applied! What the hell does Covered California do every month to justify this surcharge, that's expected to generate $223 million annually?
Unfortunately, it doesn't look like they factored in the ongoing 35% Covered California lapse rate when estimating the expected revenue from this $13.95 rip-off fee.
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They get $13.95 which really isn't much less than Anthem pays us at $18 per month.
What I love is that the czar of the exchange who originally didn't want agents to participate will call people who did not renew or cancelled. Too bad I can't do this with Medicare Advantage. But then I'm governed by CMS rules.
Rick
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Anthem (and all insurers), along with the agents/brokers, perform more policyholder maintenance functions every month than Covered California does. You deserve at least $18 a month. What does Covered California do to deserve $13.95 every single month, per policy sold?
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