HHS May Kill Stand-alone Indemnity

[taterpeeler]

I had a guy yesterday that wife just left the warm confines of a job and group with a 500 ded. they were looking at companion life. zero ded and 6 dr visits a year... 480 a month... I spent 1 hour blasting that thing and quoting a ACA off exchange plan for 1300 a month... tough nut to crach when these guys run round pimping sunshine

 

[bluediamond]

I would say that companies are reading the new guidance and running for the hills. I am so glad these products will be gone as stand alone vehicles, as they are incorrectly sold (most of the time), created tons of customer confusion, and were no good for the client if they wanted real protection.

We were notified that Assurant Health Access is pulling that product at end of year.

And in post 227, Horselady said that Freedom Life is also pulling their indemnity product
http://www.insurance-forums.net/for...um/anyone-heard-ushealth-advisors-t33531.html

BUH BYE

You are correct that they for the most part were not sold correctly, but there was also a need for them for minimum wage person that could not afford a major med. I did not sell many of the hospital, but sold a boat load of accident plans that paid a small monthly income in case of accident. Had several client's collect on them over the years. But doesn't matter anymore.

 

[RayNY]

Looks like our indemnity program is good to go then. Explicitly only sold with qualifying "metal tier" health plans.

Good gosh it's gotten popular. Not subject to open enrollment, and doesn't need to have an effective the same as the health plan. We had quite a few people on bronze/silver who were not happy with the deductible and this is the only way to lower it now that they're locked into plans until the next open enrollment.

1-day hospital admission with 2 procedures can knock a $6350 Bronze deductible down to $590, less than a Gold plan, for just $55 extra (so it's still cheaper than a silver plan). Not a hard sale at all.

 

[Happy Texan]

Looks like our indemnity program is good to go then. Explicitly only sold with qualifying "metal tier" health plans.

Good gosh it's gotten popular. Not subject to open enrollment, and doesn't need to have an effective the same as the health plan. We had quite a few people on bronze/silver who were not happy with the deductible and this is the only way to lower it now that they're locked into plans until the next open enrollment.

1-day hospital admission with 2 procedures can knock a $6350 Bronze deductible down to $590, less than a Gold plan, for just $55 extra (so it's still cheaper than a silver plan). Not a hard sale at all.

While sales of these limited benefit products can help with the large deductibles, many people may opt for a long-term plan of pre-funding the deductibles while earning a 35% return - guaranteed on their contributions.
After 57 months, at $300 a month, one has pre-funded his deductible by $50,000 (less claims made) - lowering the premium 55%.
It is one thing to fill in the gap of a deductible.
It is quite another thing to do so while lowering the premium every month.
Don Levit
Managing Partner National Prosperity Life and Health

 

[somarco]

many people may opt for a long-term plan of pre-funding the deductibles while earning a 35% return

Dang, this sounds so much like A L Williams BTID sales pitch.

 

[Happy Texan]

Dang, this sounds so much like A L Williams BTID sales pitch.

Are you inferring I am not telling the truth
If so you will have to explain your concerns to Milliman and the Texas Department of Insurance
Don Levit

 

[Tkruger]

Happy Texan, welcome to the forum.

I don't think that was what somarco was trying to convey. As agents/agencies we know how to validate someones claim.

You do pose an interesting option that I'm sure others would benefit from if you shared further what you are referring to. That said I know it's against forum rules to post in the offers section as of yet, however paid adverts are an option.

PM me as an agency I'm interested in talking to you further about what you've presented.

PS. I am a sales person by and by. Don't try to sell me...Give me real verifiable data that can be confirmed.

 

[FLM2]

While sales of these limited benefit products can help with the large deductibles, many people may opt for a long-term plan of pre-funding the deductibles while earning a 35% return - guaranteed on their contributions.
After 57 months, at $300 a month, one has pre-funded his deductible by $50,000 (less claims made) - lowering the premium 55%.
It is one thing to fill in the gap of a deductible.
It is quite another thing to do so while lowering the premium every month.
Don Levit
Managing Partner National Prosperity Life and Health

Remind us about this when the product is approved in a single state, anywhere.

Until then, this is just spam...

 

[Yagents]

I wonder what the return on the product will be when the feds raise interest rates above the .00003% level now?

 

[AllenChicago]

Looks like our indemnity program is good to go then. Explicitly only sold with qualifying "metal tier" health plans.

Good gosh it's gotten popular. Not subject to open enrollment, and doesn't need to have an effective the same as the health plan. We had quite a few people on bronze/silver who were not happy with the deductible and this is the only way to lower it now that they're locked into plans until the next open enrollment.

1-day hospital admission with 2 procedures can knock a $6350 Bronze deductible down to $590, less than a Gold plan, for just $55 extra (so it's still cheaper than a silver plan). Not a hard sale at all.

One of the companies that told me it was not changing a thing with their Indemnity product has had a change of heart. Starting 2015, only plan sold will be a GAP product that pays 100% of all Inpatient Expenses and 50% of all Outpatient Expenses, up to the member's chosen benefit cap. The cap will range from $3,000 to $10,000. Will only be sold to those who have major medical. Cost? Still being decided.

One agent I talked to is earning about $8,000 @ week from this company, which advances 12 months. Needless to say, he's a tad concerned over how this will affect him.
-ac