Help a non-health agent - Group vs Individual

Feb 9, 2008

  1. loginname
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    loginname Expert

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    I am primarily a life agent, but have a client (age 27) looking for health insurance. She recently got married and had a baby. She was going to join her husbands group plan (he works for a small company), but they found out she and baby would add $565 per month to his premium. There is $1000 deductible, $2250 per person max, and $5000 family max.

    Is it reasonable that she could buy an individual policy (with the baby added as a dependent) and save money over the group plan?

    What health companies are good in Minnesota? I've used Assurant in the past jbecause their Regional VP was very helpful and I received good service.

    Your thoughts?
     
  2. TXINSURANCE
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    TXINSURANCE Guru

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    If her health is good it is extremely common to break off dependents from group plans. The real questions are:

    1. If this is an option (i.e. open enrollment) she might not be able to drop at this time, this varies drastically - check with the carrier.

    2. If her health (and childs) is good enough to make it through individual underwriting. Even something relatively minor can be a major issue in underwriting.

    3. I am not sure the individual maternity options in MN you hit on one state I do not service. Most individual maternity options are pretty crummy - maybe a MN agent can chime in, maybe BCBS of MN offers maternity. This is of course if she is planning on more children - she is only 27 this could be a strong possibility.

    4. Price. For a $1000 deductible her and child, if the price is close - don't bother just keep the group, remember to factor pre-tax at work vs. after tax on the individual market.

    Have fun!
     
  3. loginname
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    loginname Expert

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    1. She is dropping off her old employer's plan in 6 weeks. She is receiving severance right now.

    2. Health is great on both.

    3. She has told me that she wouldn't be getting pregnant again for at least 2 more years. Do most plans not cover pregnancy?

    4. The Assurant RVP showed me a OneDeductible Plan that cost $220/month with $4000 deductible.
     
  4. TXINSURANCE
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    Read the policy before you sell it. If they will give it to you.

    I thought the one deductible and NO office visits co pays? This could be an issue with a little child. In most states Assurant is far from the best deal, although this is largely debatable - not trying to start an anti Assurant thread.

    Maternity is a tough cookie in most states with individual. Most of my states and carriers don't touch it unless it is mandated by law.
     
  5. salpro22
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    salpro22 Guru

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    I don't work the MN market, but here's my input.

    Do you have a friend or business associate that sells health who you could hook up with? How are BCBS and GR in your state priced for their copay plans. Remember everything isn't about price. Call BCBS, GR and Assurant's customer service and you will see what I'm talking about.

    Assurant does have some limitations for the copay crowd as that is not their bag (normally), but when you read the specimen policies they have more benefits/less limitations, with the exception of GR's home health care provision.

    Doesn't Delta76 work MN?
     
    salpro22, Feb 10, 2008
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  6. insuremojo
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    insuremojo Super Genius

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    Yeah, what he said! Hook up with a local reputable health broker if you want to do right by your client. Hell, he may be happy just to give you some free advice over the phone, God knows I've given away too much free advice!
     
  7. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    Yes, he does, and I can endorse him heartily.

    I've talked with him extensively, and Matt is one of the sharpest guys I've seen come into the business in a long, long time.
     
  8. Delta76
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    If you have any questions, PM me and I can give you some insight. If she and the kids are healthy, they will probably come out ahead on an individual policy (I would be shocked otherwise). Assurant really isn't all that competitive in our state, the main players right now for individual are Medica and Preferred One.
     
    Delta76, Feb 11, 2008
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  9. Delta76
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    I've talked with him extensively, and Matt is one of the sharpest guys I've seen come into the business in a long, long time.

    Thanks for the compliment. The book I sent your way got returned (underfunded postage by 20 cents). I dropped it off at the post office again yesterday, so you should have it by the end of the week.
     
    Delta76, Feb 11, 2008
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