MICHIGAN - 14 Exchange Carriers.

[AllenChicago]

Michigan has 14 carriers that have applied for the State's Individual Exchange and Small Group Exchange, but according to the article, the prices won't be known until October 1st. That's hard to believe.

http://www.crainsdetroit.com/articl...rers-apply-to-sell-policies-on-federal-health#

Insurers submitting applications to health insurance exchange
Insurers that filed plans for the individual and small group market:

• Alliance Health and Life Insurance Co.
• Blue Care Network of Michigan
• Blue Cross Blue Shield of Michigan (also multi-state plan)
• Consumers Mutual Insurance of Michigan (CO-OP)
• Health Alliance Plan
• McLaren Health Plan
• Physicians Health Plan
• Priority Health
• Priority Health Insurance Co.
• Total Health Care USA

Insurers offering only individual coverage:
• Humana Medical Plan of Michigan Inc.
• Meridian Health Plan of Michigan Inc.
• Molina Healthcare of Michigan
Insurers offering only small group policies:
• United Healthcare Life Insurance Co.

 

[stuy119]

Bold strategy to wait until Oct. 1 to release rates.

 

[Yagents]

Would consumers flock to purchase new/no-name carriers?
I guess so, when that's all that will be available.

Or, BCBS will clean up, and concentration with one carrier will become even more prevalent in states that have competition today.

These new carriers will need agents to push them business to survive, and I doubt most of them will contract with agents

 

[stuy119]

MI is a very interesting state. Reps control the legislature and governor's office, but the state leans heavily to the Dems in national contests. My father-in-law is a HUGE Dem, and follows the political stuff there with tireless abandon.

My thought is that they don't want rates released early to let Dems get out in front of them and try to spin them (similarly to how CA did). They are wanting consumers to be shocked only once they have to buy a plan, and not have an idea going in.

And Bill, my guess is that the newer carriers are counting on price to be an effective strategy to attract new business - unfortunately, the old rules of supply and demand won't apply due to the artificial pricing subsidies.

 

[RayNY]

They might be holding off on rate release till the last second to prevent carriers dropping out when they see their competitive position (like has happened in every state that released rates so far).

Keep in mind, if subsidies are constant and costs are not (As CMS APTC guidelines have indicated), cost competition can become even more important. I.E. You get a $250/mo subsidy. cheap plan is $252, so you pay $2/mo. Next plan is $300/mo, so you pay $50/mo. A lot of people will think "why would I pay 25 times as much?" If you have the cheapest plan, because the subsidy is calculated on the second-cheapest, your plan may be "free" for those in low FPL tiers, and free>paid.

 

[Ann H]

They might be holding off on rate release till the last second to prevent carriers dropping out when they see their competitive position (like has happened in every state that released rates so far).

Keep in mind, if subsidies are constant and costs are not (As CMS APTC guidelines have indicated), cost competition can become even more important. I.E. You get a $250/mo subsidy. cheap plan is $252, so you pay $2/mo. Next plan is $300/mo, so you pay $50/mo. A lot of people will think "why would I pay 25 times as much?" If you have the cheapest plan, because the subsidy is calculated on the second-cheapest, your plan may be "free" for those in low FPL tiers, and free>paid.

That was a very good summary of the decision making process for low income folks. People at 250% of FPL or less can only pick a Silver plan if they want the CSR (cost sharing reductions) subsidies, so the only way they can save extra premium dollars is by picking a no-name and/or narrow network plan. A little known carrier with a skinny network may not be that attractive to folks with higher incomes.

 

[ctg]

That was a very good summary of the decision making process for low income folks. People at 250% of FPL or less can only pick a Silver plan if they want the CSR (cost sharing reductions) subsidies, so the only way they can save extra premium dollars is by picking a no-name and/or narrow network plan. A little known carrier with a skinny network may not be that attractive to folks with higher incomes.

What about folks way out in the sticks who won't have access to several networks? If they need/want CSR, they'll be stuck with only what's available?

 

[timsip]

What about folks way out in the sticks who won't have access to several networks? If they need/want CSR, they'll be stuck with only what's available?

That's the long and short of it. I am planning a big push in the surrounding counties around us and am currently working my strategy, but that will be the case.

"I'm sorry Mr. Farmer, in your county, you get to choose from either of these plans, neither of which include your current doctor and the nearest hospital in network is 45 miles away. The good news is that you may qualify for a subsidy. I did, however find your doctor and local hospital in this network off the exchange, but no subsidy for you there. Which do you want to sign up for?" How do you think this will go?

 

[Yagents]

They'll buy the subsidized bronze coverage, with their silver premium, and pay cash for their doctor. HSA's will become a lot more popular.

Or, pay a little extra for a bigger PPO with one of the couple big carriers that may still play in your state.

 

[AIABROKER]

Will the coverage be the same with these different companies based on the mandates? I'm wondering if it will be like Med. Advantage or Supplement plans where the coverage is very similar and it's just a difference in the network and premiums.