HumanaOne Drops a Bomb

[somarco]

Got an email from Humana regarding plans that will be effective after 9/23/2010 and there were two surprises.

STM plans are exempt from Obamacrap provisions. Do not have to offer preventive, can have lifetime caps, can have annual caps.

Haven't heard that from anyone else.

Next one caught me off guard. I have wondered, and even asked, if mental health parity applies to new plans. I even asked this specifically in a Humana meeting a few weeks ago and got a non-committal response.

Latest memo indicates new plans with 9/23/2010 eff dates and later WILL have mental health parity.

No annual or lifetime psych caps including A&D treatment. The additional premium for preventive and lifetime max PALES compared to adjustments for mental health parity. That alone could add another 20%+ to all rates.

 

[Fisher]

STM plans can have lifetime caps, can have annual caps.
.

Not sure what the diff would really be on an STM...

 

[STIBROKER]

does that mean we make....

That alone could add another 20%+ to all rates.

 

[Newby]

If I'm trying to save money and health insurance is guaranteed issue, why do I even want STM? Just go without between jobs unless I get real sick.

On the other hand, if I need coverage due to fines why wouldn't I drop my main plan every year and take STM for 6-months and then get another guaranteed issue health plan.

I don't really budget MY life like this buy you know what I mean. People will be poppng in and out of health plans like pop corn to save a nickel.

 

[ABC]

This is bad

I have been dealing with the Mental Health Parity on group health but it has only brought a 1.5% rate increase on rates.

Also I thought it only applied to group plans with 50 or more employees?

Humana will be out of the game with a 20% rate increase.

Brush off your Short Term Policy sales because there is going to be a huge shift to those plans because of cost.

If we see these kind of rate increases as standard in the individual market no one will buy. The individual health market will implode.

 

[somarco]

STM plans can have lifetime caps, can have annual caps.
.
Not sure what the diff would really be on an STM...

If you write a 6 month plan you have effectively doubled the lifetime max.

Humana will be out of the game with a 20% rate increase.

Not if other carriers do likewise.

In GA most carriers offer a mental health rider, allowing insureds to buy up to DAMN coverage as any illness. The load is always 25 - 50% so no one asks or buys it.

Part of that is due to adverse selection I am sure. If someone wants DAMN as any illness the underwriter has to believe they are anticipating filing a claim down the road.

The 20% was a wag. If it applies across the board might be less but would not expect it to be 1.5%.

If parity applies to individual major med, I would expect tougher underwriting for anyone who has any psych disorder that might lead to extensive counseling or inpatient. This will have a significant impact on kid plans.

 

[nolaagent]

Mental Health Parity doesn't apply to individual, only group. This question has been asked many times at various carrier meetings I've been to. All of them say only group.

 

[stuy119]

Mental Health Parity doesn't apply to individual, only group. This question has been asked many times at various carrier meetings I've been to. All of them say only group.

Some of the states have extended that to individual plans as well.

 

[nolaagent]

Some of the states have extended that to individual plans as well.

That could be the case...my screwy state added more mandates on top of the PPACA garbage. Rates will be going thru the roof.

 

[jbage007]

We knew from our Assurant guy back in March that short term would not be impacted by reform. Been planning accordingly.