HHS May Kill Stand-alone Indemnity

[somarco]

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

110%?

It has been a long time since I have seen sales pitches with high double digit returns. The closest thing in recent memory was viaticals projecting 20%+.

Seems like Don got his panties in a wad over my post.

Tough cookies.

 

[Happy Texan]

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

Until then, this is just spam...

We are approved in Texas

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110%?

It has been a long time since I have seen sales pitches with high double digit returns. The closest thing in recent memory was viaticals projecting 20%+.

Seems like Don got his panties in a wad over my post.

Tough cookies.

I know it sounds like too good to be true
The return is thru sharing of reserves not thru investments
When the person does not have claims his HMI account grows as do our reserves
Claims reduce his account balance and our reserves dollar for dollar
Don Levit

 

[AllenChicago]

We are approved in Texas

I know it sounds like too good to be true
The return is thru sharing of reserves not thru investments
When the person does not have claims his HMI account grows as do our reserves
Claims reduce his account balance and our reserves dollar for dollar
Don Levit

Hey..It sounds similar to how the Christian Sharing Ministry self-insurance system operates.
-ac

 

[Yagents]

Sounds more like our Fed reserve

 

[Ron Van D]

Time to sell that AFLAC stock???

Interesting article:

HHS may kill stand-alone indemnity | LifeHealthPro


From the article:

HHS wants carriers to sell individual limited-benefit health insurance products – "fixed indemnity insurance" – only to consumers who have "minimum essential coverage."

MEC is coverage consumers can use to get out of having to pay the new Patient Protection and Affordable Care Act penalty.

HHS proposed the rule in a draft regulation that could apply to individual hospital indemnity insurance, individual critical illness insurance and other individual supplemental health insurance products.

If a carrier tried to sell an indemnity product by itself, HHS would classify the product as major medical coverage, not as an "excepted benefit." The issuer would have to comply with PPACA underwriting standards that now apply to major medical, such as the requirement that the issuer sell the product on a guaranteed-issue basis.

So, will companies such as Assurity and SLAICO stop selling Critical Ilness insurance? Will CI be available as a rider on life insurance only?

 

[RayNY]

Ron, chances are, clients will have to have MEC/QHP before a CI, not that CI's in general will not be permitted.

Don, $300/month is way too much, these plans are $37-$55/month, something my clients can afford, and much cheaper than going up a whole metal tier. $300 gets you from a bronze to a gold around here, I can't see talking anyone into that.

AC, We're exploring a GAP product like that, it will probably be the common plan moving forward. I'd wager that what we have will be unique in the marketplace. It's not hard to make an income like you described just off of these products. Premium might be less, but comp is double to quadruple what the health pays.

 

[AllenChicago]

AC, We're exploring a GAP product like that, it will probably be the common plan moving forward. I'd wager that what we have will be unique in the marketplace. It's not hard to make an income like you described just off of these products. Premium might be less, but comp is double to quadruple what the health pays.

The income I described was from the $400 a month Limited Benefit plans. The true "Gap Fillers" (not the CI/Accident combos) are coming in at around $45 per person.

What bugs me is how United American, Philadelphia American, Wholesale Benefits, at.el. are only paying 50% of the outpatient charges. That makes no sense, since outpatient care is utilized FAR MORE than in-patient.

The company with the insight to have a, "Send your medical bills to us and we will pay them, up to your annual major medical out of pocket limit." option on their GAP plan will be unique and beat all the others. Particularly in the small employer market.
-ac

 

[Bobby]

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.

Ray what plan is this and who offers it?

 

[somarco]

The return is thru sharing of reserves not thru investments
When the person does not have claims his HMI account grows as do our reserves

Like the old time dividend refund offerings.

Charge extra up front and then maybe return a portion (to be determined) in the future.

 

[FLM2]

We are approved in Texas


Don Levit

When exactly were you approved in Texas, as of September 12th you weren't and you don't even have a license in the state yet:
https://apps.tdi.state.tx.us/pcci/pcci_show_profile.jsp?tdiNum=14404368&companyName=NATIONAL PROSPERITY LIFE AND HEALTH INSURANCE COMPANY, INC.&sysTypeCode=CL

Don Levit says: September 12, 2014 at 2:40 pm Yes, we will start in Texas. The process has taken several weeks longer than they told us it would take after we first sat down with the Texas Dept. of Insurance. We are waiting from the call from TDI to our actuary to say, "You are approved!" Once we get Texas' approval, many other states should follow in line as they all use similar NAIC guidelines. I know that state and city employees have horrendous premiums. Your data from the Exchanges was quite illuminating. Only $4 a month for a 64 year old! What that tells me is two things: 1. The premium is outlandishly low 2. The subsidy is outlandishly high. These subsidies are probably higher than the employer tax exclusion for the average person. We simply cannot afford everyone to exit to the Exchanges. The subsidies will seriously crimp our bloated budget. I understand your opposition to group health insurance. It is only a temporary option. Our plan will have a conversion option in lieu of COBRA, saving the employer many claims dollars. Don Levit - See more at: http://healthblog.ncpa.org/employer...ble-health-plans-steady/#sthash.7np6sWRx.dpuf