Monti_Ray
Expert
- 91
Are you guys seeing any new limited benefit plan from insurance companies in any state?
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Monti
BestInsLeads.Com
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Monti
BestInsLeads.Com
Limited Benefit Plans After 10/1/13
- Thread starter Monti_Ray
- Start date
I heard an insurance company exec on TV last night....promoting one.
Wasn't paying close attention, though. Was multi-tasking (with TV in background). I THINK it was on FoxBusinessChannel. And, it was NOT a commercial.
He described how buyers could choose to:
- Pay $600 for an ACA plan
...or...
- Pay $200 for his $2 million product (with medical underwriting)
- Plus...pay the tax penalty (aka: the govt "fee")
Save a lot of money choosing his product.
After the dust settles, we WILL be seeing more-and-more of these products.
Wasn't paying close attention, though. Was multi-tasking (with TV in background). I THINK it was on FoxBusinessChannel. And, it was NOT a commercial.
He described how buyers could choose to:
- Pay $600 for an ACA plan
...or...
- Pay $200 for his $2 million product (with medical underwriting)
- Plus...pay the tax penalty (aka: the govt "fee")
Save a lot of money choosing his product.
After the dust settles, we WILL be seeing more-and-more of these products.
- 8,448
From a protection standpoint, which is best?
1. A Short Term Medical for 12 months
2. A good Limited Benefit plan that's ongoing.
1. A Short Term Medical for 12 months
2. A good Limited Benefit plan that's ongoing.
I can't talk myself into offering EITHER at this point in time.
Since we don't have a crystal ball (into client's future health issues), we don't know where our E&O issues might arise.
A $2 million Short Term product COULD run out (with a large claim).
A Limited Benefit product will usually NOT pay the full claim (for any procedure). If they have a LARGE claim, they'll end up with a VERY LARGE out-of-pocket exposure.
Neither is safe.
Since we don't have a crystal ball (into client's future health issues), we don't know where our E&O issues might arise.
A $2 million Short Term product COULD run out (with a large claim).
A Limited Benefit product will usually NOT pay the full claim (for any procedure). If they have a LARGE claim, they'll end up with a VERY LARGE out-of-pocket exposure.
Neither is safe.
- 3,344
2MIL ST policy IS enough coverage in 99% of all clients. Its good enough if they don't have pre ex. I disagree.
You may feel differently when your client loses the farm because you didn't offer them enough coverage.
Ten years ago, I told clients I'd never seen a $1 million claim.
Since then, I've seen several clients exceed $5 million.
Who's at fault?
- Your client ...for failing to ensure they had sufficient coverage?
- You....for failing to offer them sufficient covg?
My guess:
The empathetic jury says the agent should have known better.
...
Ten years ago, I told clients I'd never seen a $1 million claim.
Since then, I've seen several clients exceed $5 million.
Who's at fault?
- Your client ...for failing to ensure they had sufficient coverage?
- You....for failing to offer them sufficient covg?
My guess:
The empathetic jury says the agent should have known better.
...
- 3,344
Sorry Tx Im not paranoid and Ill keep writing 2mil st policies all day long when apropriate 
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Reality is many people wont buy aca compliant plans take the penalty and buy st...ill sell it all day long if I have to
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Reality is many people wont buy aca compliant plans take the penalty and buy st...ill sell it all day long if I have to
STM is a claims denial waiting to happen, there is a 5 year look back on pre-existing conditions and you absolutely know that if someone has a major claim the insurance company will do whatever they can to deny it.
I attended an HII agent webinar and asked how pre-ex was handled and got stonewalled-they said it's based on the application but couldn't (and wouldn't) give me an answer as to whether HBP might be considered a pre-ex if someone had a stroke or heart attack.
I won't have any part of it, I don't need a few extra bucks badly enough.
I attended an HII agent webinar and asked how pre-ex was handled and got stonewalled-they said it's based on the application but couldn't (and wouldn't) give me an answer as to whether HBP might be considered a pre-ex if someone had a stroke or heart attack.
I won't have any part of it, I don't need a few extra bucks badly enough.
- 8,448
HII won't let you view a specimen policy if you're deciding to contract with them. RED LIGHT WARNING if a company selling any of the weakly-regulated medical related plans (Accident, Disability, Critical Illness, et.al.) won't let you see the policy document. HII promised to e-mail one to our agency 3 times last year, but never did.
Safest way to write a STM is to write one that sufficiently overlaps an ObamaCare open enrollment period and for those who have no adverse medical history in the past x years. (The x varies by state)
Regarding Limited Benefit Plans.. Most agents mistakingly believe that they don't have a pre-x waiting period. They do..usually 12 months.
ac
Safest way to write a STM is to write one that sufficiently overlaps an ObamaCare open enrollment period and for those who have no adverse medical history in the past x years. (The x varies by state)
Regarding Limited Benefit Plans.. Most agents mistakingly believe that they don't have a pre-x waiting period. They do..usually 12 months.
ac
- 2,127
I have also seen many claims over $2,000,000 in the past 5 years. Actually in my own family in a matter of about 4 months had claims over 3 mil. I never sell a temp unless it's from group to group or maybe overlapping as AC says. HII would also not show us any example's when we signed up with them. It was that guy on the new's last night.
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