Interstate Health Insurance

Oct 2, 2008

  1. ABC
    Offline

    ABC Guru

    Posts:
    4,082
    Likes Received:
    35
    ABC, Oct 2, 2008
    #1
  2. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    28,867
    Likes Received:
    2,389
    State:
    Georgia
    Interstate sales of health insurance is a stupid idea that has never worked before and will not work now.
     
    somarco, Oct 2, 2008
    #2
  3. ABC
    Offline

    ABC Guru

    Posts:
    4,082
    Likes Received:
    35
    Still I see this happening.
    The carriers with national networks will be in a strong position.
     
    ABC, Oct 2, 2008
    #3
  4. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    28,867
    Likes Received:
    2,389
    State:
    Georgia
    How will they be priced? And how long with the savings exist?

    I can buy a Humana Portrait 80 with a $2500 deductible and copays in Atlanta for $699.

    Same plan in Chumps back yard is $546.

    So if I buy from Chumps but receive treatment in Atlanta, how long before the premiums I pay are inadequate to support the higher costs of Atlanta?

    If these plans are to have a competitive edge they will have to account for cost differentials.

    To an extent it makes sense for someone (who is healthy) living in a GI state (such as NY) to buy a policy from Chumps. They can probably cut their premium in half or more. But that price structure will only be adequate if the carrier accounts for the higher cost of NY providers.

    They may be able to offer the policy without the GI mandate and save a bunch in claim costs, but the mandates are only part of the picture.

    This is a zero sum game. If everyone in NY and Atlanta buys from Chumps then everyone (including Chumps) will be happy until claims start to have an effect on premiums and Chumps no longer has a a price advantage.
     
    somarco, Oct 2, 2008
    #4
  5. dr954
    Offline

    dr954 Expert

    Posts:
    70
    Likes Received:
    0
    Would need to get contracted with hundreds of health insurance companies... We'd have to flip entire book of business, everyone would want a new policy.. Not such a bad thing though, 1st year commissions are better than renewals!
     
    dr954, Oct 2, 2008
    #5
  6. ABC
    Offline

    ABC Guru

    Posts:
    4,082
    Likes Received:
    35
    Marco
    I agree with you about plans. Those plans that are mandated in your state would pay according to your states contract.

    There could be a huge reduction in premium for the insured so they will not care until that have to pay over the contracted rate for a claim.

    From an Agent stand point we all should be very aware of this. Everyone should take this very seriously.

    From an individual standpoint this could be the point where the carriers allow the insured to go direct and cut out the brokers. With the E-applications the carriers are in position to do it.
     
    ABC, Oct 3, 2008
    #6
  7. moonlightandmargaritas
    Offline

    moonlightandmargaritas Guru

    Posts:
    9,749
    Likes Received:
    32
    State:
    Florida
    Most of them do it now...
     
  8. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    28,867
    Likes Received:
    2,389
    State:
    Georgia
    It already exists.

    All the major carriers have DTC sites and most have in house call centers to answer questions. They are staffed by $8/hour CSR's that have no clue.

    Problem is, they don't write that much direct and what they do write doesn't stick. I have this from too many sources.

    Except for Blue, carriers with DTC sites get about 5% of their business direct. Blue is a bit higher.

    The average time on the books is 6 months.

    Hard to make a profit that way.
     
    somarco, Oct 3, 2008
    #8
  9. ABC
    Offline

    ABC Guru

    Posts:
    4,082
    Likes Received:
    35
    So Marco do you think I am just being paranoid about this interstate health plan?
     
    ABC, Oct 3, 2008
    #9
  10. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    28,867
    Likes Received:
    2,389
    State:
    Georgia
    You are.
     
    somarco, Oct 3, 2008
    #10
Loading...