Large Companies Weigh Dropping Benefits

[stuy119]

Ah, the law of unintended consequences (and rising costs) ...

AT&T, Verizon, others, thought about dropping health plans - May. 5, 2010

Not that anyone with a brain didn't see this as a possibility.

 

[somarco]

Not that anyone with a brain didn't see this as a possibility.

The folks in DC seem to have Abby Normal brains.

 

[tajitj]

Doesn't that give a nice boost to the individual market? Are those regional pools looking like a good place for independent agents or what? Or will the ability to access it have all kinds of loopholes. Seems like everyone has a different opinion.

What if many large employers drop coverage and force millions more into the individual market onto these quasi govt run pools. Could shear volume make up for any commish cuts?

 

[YouGotMyMoney]

Well if commissions drop to 10%, you need to write 2x the amount of business to make up for the commission drop.

Naturally, if it's 7%, you need 3x the amount of business.

 

[tajitj]

Well if commissions drop to 10%, you need to write 2x the amount of business to make up for the commission drop.

Naturally, if it's 7%, you need 3x the amount of business.

I don't really see why companies will need to cut commissions? They are not going to be forced into these uninsurable pools right?

So if millions come onto regular individual market, why would they not benefit by very insurable people now forced onto it.

I have saw many points debated, but never answered.

 

[GreenSky]

I don't really see why companies will need to cut commissions? They are not going to be forced into these uninsurable pools right?

They are not forced to take uninsurables now but in the future, they must return 80% of their premium for benefits. They will have to cut commissions.

In addition, if everything becomes guaranteed issue, it's likely that the number of plan choices will be reduced. So why do they need us?

Rick

 

[bobson]

They are not forced to take uninsurables now but in the future, they must return 80% of their premium for benefits. They will have to cut commissions.

In addition, if everything becomes guaranteed issue, it's likely that the number of plan choices will be reduced. So why do they need us?

Rick

To one or less?

 

[tajitj]

They are not forced to take uninsurables now but in the future, they must return 80% of their premium for benefits. They will have to cut commissions.

In addition, if everything becomes guaranteed issue, it's likely that the number of plan choices will be reduced. So why do they need us?

Rick

So the 80% thing is the problem. Maybe an accounting trick can take care of that.

No distinction between plans in the new pools to all plans in regards to guaranteed issue? So why even have a high risk pool if every plan has to be GI.

My basic understanding was the regional pools were going to be set up for the GI, and premiums would be subsidized like crazy.

But is a familiy is not uninsurable and make under a certain amount they would end up in the regular individual market.

Oh, well, I am sure nothing really makes sense or can be answered with this bill.

 

[Norwayguy]

Well if commissions drop to 10%, you need to write 2x the amount of business to make up for the commission drop.

Naturally, if it's 7%, you need 3x the amount of business.

Your not accounting for the increased premium for GI and the extra mandated benefits.

 

[VolAgent]

Your not accounting for the increased premium for GI and the extra mandated benefits.

So who is going to be able to afford it? And if it is subsidized, do you think you'll get commissioned on the subsidized amount?