Major Medical Vs Mini Plans

Discussion in 'Employee Benefits Forum' started by James, Jun 17, 2007.

  1. James
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    Well, in Tennessee the Mini Plan won out! Governor Bredeson has effectively inacted the "Cover Tennessee" Plan using the argument that you can't force people into something they basically don't see a need for (however wrong that may be). Plus he then effectively position the argument that the majority of people in lower middle income stand a greater chance of being financially burden with medical treatment in the range of 15-25 grand then a catostropic event and cost. I think if there were more Democrats like Bredeson I would be more likely to vote Democratic.

    http://www.covertn.gov/

    I have to admit, I agree with Governor Bredeson.
     
  2. James
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    What I find interesting is that some here that scream you better have your E&O ready whenever you sell limited plans. Now you have a State that endorses the Limited Plan, I would think with that a person would have a hell of a time sueing because they brought a limited plan instead of a major plan. Of course I'm assuming that full disclosure at the time of sale.
     
  3. Crabcake Johnny
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    Right. It's like a bunch of new car salesman calling up a guy who has an ad in the paper for a 1988 Chevy for $1,500 and saying he's an unethical whore. You should buy a new car or take the bus.

    I just sold CareFirst Personal Comp to a 45 year old smoker for $98 a month. I guess I'm going to hell, getting sued, losing my appointment and getting my license revoked because he's got a $500 cap on drugs.

    But it must be a nice view from up there for some people.
     
    Last edited: Jun 17, 2007
  4. somarco
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    There is only one reason TN (and other states such as MA) are "endorsing" the mini-med plan . . . costs.

    TennCare was a comprehensive major medical plan and a financial disaster.

    Already MA has scaled back what must and must not be covered under their health insurance mandate for one reason . . . costs. What was designed in the General Assembly and given an arbitrary cost figure did not hold up in the real world once the carriers were given the opportunity to price the product. The benefits were scaled back and it still did not fit. Now, with the July 1 date bearing down on them, they are back to the drawing board one more time to figure out how to provide amnesty for those who still cannot afford the new, watered down coverage.

    A mini-med is like wetting the bed. It may seem right at the time but eventually you need to do something about the problem.
     
  5. Crabcake Johnny
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    So you're saying that when price comes into play anything is better than nothing?
     
  6. Guest
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    I think most of us will agree to the above. I won't sell any of the 'basic' or 'essential' plans of the Blues (that typically have OP caps and/or limited Rx coverage) to people who can afford a better plan (ie. they live in a nice house, have a BMW, etc.) If they want a crap plan (and I them them its a crap plan) or a mini-med from NASE, I tell them to get it from someone else or go direct.

    On the other hand, if I'm talking to a recent college grad looking for a job or someone recently laid off or simply someone you would classify as 'working poor' I will suggest a STM (BTW, Blue Shield of CA just pulled out of the market. Don't know why.) or a mini-med because something is better than nothing.

    Personally, I think all of us who sell healthcare should be looking for a "Plan B" because other states will follow the Mass. and Tenn. leads and we're going to be cut out of the system. Myself, I do work-sups for Colonial and looking to move into the annunity senior market. Health coverage will be a 'commodity' in 36 months (one year after a new administration takes over, assuming a Dem will win, and I don't see how one can lose... if the name isn't Clinton.)

    Al
     
  7. somarco
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    Al, my plan B is to continue doing what I have been doing since 1975. Write health insurance where I can and pick up the discards from agents who claim the sky is falling.

    Who knows? I may even get a CA, TN & MA license just to pick up the slack when I run out of folks to sell in GA. I believe there is plenty of gold left to be mined in those areas.
     
  8. Crabcake Johnny
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    I do not know what's in store for individual coverage but in the very short 4 years I've been in the biz I've already seen too many negative changes. Without missing a year each year I've been in the biz since '03 rates have gone up, benefits have gone down and less and less players are in the game. Now GR is capping meds on most of their plans which doesn't bode well for the future.

    The saying is expect the best but plan for the worst. I am really ramping up my business over the course of the next few years. The gravy train may stop - it may go on for another 50 years. If it goes on then great, if it stops in a few years I wouldn't mind a few hundred thou in the bank until I decide which business to get into next.
     
  9. salpro22
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    Exactly, and if the @#[email protected] hits the fan, there is always life/disability/medicare insurance, etc.; mortgages, commercial real estate, mail order brides OR groomes, yadda yadda. Pick the niche!
     
  10. senior-advisor-indiana
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    It makes me sick to hear about agents being cut out of the loop.
     
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