Interesting Conversation Yesterday

Oct 1, 2015

  1. Tkruger
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    Tkruger Guru

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    So I was speaking with a carrier contact yesterday and it was mentioned that the stick ratio for on exchange based plans was bad and I mean really, really, really bad. So with the data I was provided I ran some numbers and here's what I found.

    Per ObamaCare Facts 11.7 million million signed up in 2015 for health plans. Per the carrier I was speaking with (Not our numbers) there is a 60% stick ratio.

    Long and short 4,680,000 of the 11,700,000 fell off the books for one reason or another. Leaving only 7,020,000 still covered. Clearly not a sustainable result.

    In my experience I've seen that the primary fall off reason was due to verification info being needed and not being received either by upload or via mail to London KY.

    What has your experience been?
     
    Tkruger, Oct 1, 2015
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  2. AllenChicago
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    AllenChicago Guru

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    One of many problems for insurers is that those on-exchange customers who "stick" with the most adhesiveness, have the highest claims and the lowest deductibles. It's a demographic thing, according to our experts.
     
  3. russelltw
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    russelltw Guru

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    BX in our state said that 1/5 of their subsidized business purchased a plan, had services performed, then stopped paying for their plan. Hard to keep that up long term.
     
  4. YouGotMyMoney
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    YouGotMyMoney Guru

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    Allow carriers to draft out of their SSDI checks LOL
     
  5. RayNY
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    Personally, I saw a similar retention figure with my on-ex clients, about 70%.

    Not a single data related issue, not on my watch.

    I was shocked how many just "got everything taken care of" and dropped the plan, or "isn't using it" so they chose not to pay.

    I would've lost another ~10% if I didn't talk them out of dropping coverage by reminding them that they can be hit by the proverbial bus any day and this is here for your big 6-7 figure claim when things really go wrong, not to pay for your office visit for sniffles.
     
    RayNY, Oct 1, 2015
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  6. yorkriver1
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    yorkriver1 Guru

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    My experience with persistency of subsidized plans is probably not far off from the 70%. I was reviewing my sales log against commission statements to separate the renewals from lapsed policies.

    Some of them were urged by parents to sign up, and I think their current status as young invincibles may affect the urgency. I noticed that keeping the coverage wasn't always a function of income level or price, more of desire to keep the coverage out of current need or wanting to be covered out of caution. The premiums for many who lapsed were very low.

    Maybe a zero premium bronze plan would be less likely to lapse than a $25 silver plan for an otherwise healthy younger person. There are several plans in this area with a limited # of PCP visits before the deductible.
     
    Last edited: Oct 2, 2015
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