Illinois's ABE Exchange-Marketplace

[AllenChicago]

Let us assume that LoL wins a lot of business due to being the "low price leader." Let us also assume that Aetna's CEO is correct, and that it will take a while until there is an uptick in exchange business, and only sick people will flock to the exchanges.

What happens then, when LoL isn't able to keep their head above water? Bailout?

LOL Mutual is headed for the Co-Op graveyard even before they get their plans designed. Below is an excerpt from this article: Land of Lincoln Health CO-OP in Illinois Takes Off | RACs / ICD-9 / ICD-10

"We're exploring the feasibility of narrower networks, because when you have a narrower network, you presumably have more administrative overhead cost savings. And because we are a mutual, the lower we can make the administrative cost, the lower we can make the premiums. But if members want more choice, more flexibility, we'll explore that. We're asking, do you need a network with 90 hospitals, or will 20 options suffice?"

One of the problems when you have a low-paid CEO is that he probably is low-experience as well. The chairman of Land Of Lincoln believes a weak PPO network will lower costs, thereby generating revenue in excess of expenses. As the revenue increases, LOL will be able to continually decrease premiums and provide additional benefits over time. Mr. Scanlan forgets that this Co-Op will be shelling out millions of dollars a month in medical payments to providers. (Or, maybe he hasn't been told this yet.)
-ac

 

[supersupps]

I too love obamacare.. I'm the lead obamacare agent in san diego.. probably Ca too

 

[taterpeeler]

i too love obamacare.. I'm the lead obamacare agent in san diego.. Probably ca too

shock value!!





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now, about the chairman of this new LOL insurance carrier. Check out the cred's of this yahoo. Nothing but an HR flunky and also comes from academia.... fits the exact profile of the current leader in the big house

Prior to joining MCHC, Mr. Scanlan served for more than 10 years in senior Human Resource positions at Evangelical Health Systems (Advocate Health Care) and the Chicago Osteopathic Health System. Prior to entering health care, Kevin spent 5 years in human resources in the service sector. Mr. Scanlan began his professional career as a teacher in the Chicago Public Schools at various high schools.
Mr. Scanlan hold a bachelor’s degree in education from Chicago State University and a Master’s in Management, with high honors, from the National College of Education, where he was honored as the Alumnus of the Year in 2009. He is also a member of the adjunct faculty at National-Louis University and Governors State University. In 2012, Mr. Scanlan was honored by the American College of Healthcare Executives, receiving their Regents Award for Healthcare Leadership.

 

[stuy119]

I'm setting the over/under at 4 years' survival after reading that bio. Unless there are massive rate hikes. Although that might accelerate the decline.

 

[Ann H]

I give it 12 months. Really low-income people are subsidized so much that they don't care what the original premium is. They pay their "member share" as a percentage of their family AGI whether they pick Blue Cross or Land of Lincoln. Same thing for moderate income, except for very young people whose premium is actually lower than the "member share". And those who are over 400% of FPL won't want Land of Lincoln. Just my take on it.

 

[VolAgent]

I give it 12 months. Really low-income people are subsidized so much that they don't care what the original premium is. They pay their "member share" as a percentage of their family AGI whether they pick Blue Cross or Land of Lincoln. Same thing for moderate income, except for very young people whose premium is actually lower than the "member share". And those who are over 400% of FPL won't want Land of Lincoln. Just my take on it.

If that is the case, they might barely have any policyholders. You have to assume those with subsidized coverage will go with a name they recognize, so none will be picking LoL.

 

[Yagents]

Ann, as usual, you are right. Price won't matter because the gov't is picking up the difference in the higher priced similar SILVER plan. But if they upgrade or downgrade metals, the dollar amount of the subsidy transfers over, and the lower price may be more attractive at that point.

So much for creating "competition", and the way this is set up, insurers have no incentive to keep prices lower. What a joke.

 

[stuy119]

Just read something put out by the DOI here in IL. Apparently they are not letting carriers move individual policies to 12/1 or 12/15 effective dates i -state, saying it's a way to circumvent the law's intent.

 

[Ann H]

Just read something put out by the DOI here in IL. Apparently they are not letting carriers move individual policies to 12/1 or 12/15 effective dates i -state, saying it's a way to circumvent the law's intent.

That is important, even to those of us in other states. Can you please send a link or attach a pdf of that notice?

 

[stuy119]

That is important, even to those of us in other states. Can you please send a link or attach a pdf of that notice?

Sorry, thought I did.

http://www.resourcebrokerage.com/pd...pulationofPlanYrforNGF-IMM-GHBenefitPlans.pdf