HHS Says Health Insurer Charging Unreasonable Rate Increases

[leevena]

Wow, little frustrated and I hope I did not cause it because it was not my intent.

No disagreement with your comments/assessments of the carriers.

As for the self-funding, I would like to disagree...politely. First off, I would never use an ASO contract from a carrier. They tend to be less efficient when compared to a good tpa.
There are so many options available today for the small to mid size, and more coming each day, that the opportunity to self-fund these groups is great.

Just this week a report was released that showed significant increases in self-funding provided by the BUCAH carriers; Aetna was down in both risk/aso, but all the others were up significantly in the ASO market. And to add a cherry to the report, KP (the king of HMO/community rating) increased their ASO business by 21%.

I truly am not trying to frustrate or upset you and apologize if I did. But if your fully insured market is as frustrating as it sounds, do some research into self-funding. I really believe you will find more opportunities for you/your clients.

Have a good weekend.

 

[ABC]

No worries, its a tough topic for me. I treat my clients renewals as if they are mine.
Thank you Leevena

 

[somarco]

A case with a 55% loss ratio they still gave them 20% rate increase.

Was this a fully pooled case? How much credibility is assigned to groups of that size?

My experience tells me that the rate increases are not justified. If they were justified why am I able to get rate relief on almost half of my renewing business?

Isn't that the way a competitive market works?

If the renewal is too high they get a better rate and move on.

That is the way it has operated since I started writing group health (fully insured and self funded) in 1975.

 

[Guest]

That is the way it has operated since I started writing group health (fully insured and self funded) in 1975.

Ah - the Ford administration. Right before our GA buddy Carter, and 13% interest rates on a mortgage.