Losing Your Obamacare Plan Because of Obamacare

[kgmom219]

I thought last year was the year to "save your book". Instead, This year seems to be the one.

Oh its this year. No question.

Save the book. Add some.

Then in March figure out what the heck we are going to do for 2016 when our books are maxed with the current model.

 

[AllenChicago]

Yes, we are screwed. Case in point:

FL client just called, just received letter stating her current Aetna ON exchange ACA 94% CSR Classic 5k plan is no longer being offered. Her plan will TERMINATE on 12/31, and she must pick new plan. Even though the law states they must convert to closest metal plan. Oh, BTW, no mention of me or to call their agent. Oh, and no heads up from Aetna either.

Unfortunately for agents and for Aetna, indicators are pointing to the company becoming more anti-broker/anti-agent than ever.

The CEO gave himself a 280% pay raise when agent commissions were cut.
Ref: Healthcare-NOW! - Health Insurance CEO Pay Skyrockets in 2013
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[Yagents]

Canceled Health Plans: Round Two - Kaiser Health News

 

[yorkriver1]

Yes, it must be within those ranges. Yes, the AV calculator they use changes every year. Yes, if they adjust copays/deductibles, etc to keep it within the ranges, but then it technically changes the plan, and therefore cannot keep existing plan the way it is currently built. Yes, with the OOP tied to HSA OOP, the AV will always change each year. Yes, we are screwed. Case in point: FL client just called, just received letter stating her current Aetna ON exchange ACA 94% CSR Classic 5k plan is no longer being offered. Her plan will TERMINATE on 12/31, and she must pick new plan. Even though the law states they must convert to closest metal plan. Oh, BTW, no mention of me or to call their agent. Oh, and no heads up from Aetna either. I've now got 30 more clients to handle this OEP during 30 day period. In addition to all NON GF Aetna plans being termed, and Humana. I'm booked already !! I thought last year was the year to "save your book". Instead, This year seems to be the one.

I have some clients on that Aetna 5000 Classic plan. I wonder if that's why the agent support office was closed yesterday afternoon for a few hours to train staff. I will call them this morning to ask if letters went out in my state. Haven't heard anything yet. The chart from Allen Chicago's posted link to CEO pay is a pretty impressive look at the proportionate levels of CEO pay among the healthcare insurance majors.

Aetna was the lowest price/most generous plan in our market for up front copays. They did help influence another carrier to offer copay before deductible plans for 2015, which they had not before in Silver and Bronze tiers.

 

[somarco]

Thanks for the link, Bill, but the KFF article appears to be about pre-14 plans that are now expiring.

This caught my eye.

One reason behind the switch is that insurers determined they can make more money selling plans that comply with the Affordable Care Act, often at higher premiums that may be subsidized by the government.

"They're getting a lot more revenue, often for the same person," said consultant Robert Laszewski, a former insurance executive.

They will only get more revenue if they retain their existing clients after the plan changes and premium bumps.

Obamacare, especially with the older "sub-standard" plans expiring, is adverse selection at its' finest.

York, CEO pay get's a lot of press but is a non-issue when looking at the big picture. Obamacare in total, especially the MLR, creates a much bigger problem than paying an exec an extra $1M or so.

 

[yorkriver1]

Well, it was lots more than 1M, that's why the bar graph visual was so impressive, I think Aetna's CEO pay more than doubled from about $15-18M to $30M. The others, not so much. Big tall bar vs much lower bars.
Point taken, divide that pay by each policyholder, rounding error.

 

[somarco]

I took a hard look at WalMart a few years ago when MD was going to make them provide health insurance (or upgrade, can't remember which) if they located a store there. I took the pay from the top highest earners and divided it by the number of US workers. If the top 10 guys and gals worked for $0 and that money was redirected to worker benefits each worker would receive less than $10 per month.

Casual observers are always bitching about exec pay and the "pay spread". Same thing about profits.

The millions (billions) in profits (after tax) break down to pennies on a per sale basis. Some industries have higher profit margins than others. Carriers are usually in the 3 - 4% range over all lines of coverage and ancillary businesses.

If the govt made them offer their product at 0% profit you could conceivably reduce premiums by 3 - 4%. Even with Obamacare rates you aren't talking a lot of $$ on a per policyholder basis.