Michigan Blue Cross Agrees to Freeze Medigap Rates

Crabcake Johnny

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Michigan Blue Cross deal freezes Medigap rates - chicagotribune.com

LANSING, Mich.— Blue Cross Blue Shield of Michigan and Attorney General Bill Schuette say they've agreed to keep rates stable for seniors who buy supplemental health coverage from the insurer.

The deal announced Thursday affects so-called "Medigap" policies bought to supplement Medicare coverage. Schuette says the agreement freezes rates until August 2016.
 
Amazing. That would be the single greatest sales tool.
Show up at prospects' homes with the article.
 
This qualifies as the new trend in Democrat party policy making. Its called "strong arm regulation."

It boils down to, we can't get this passed through the legislature but you better agree to it anyway or we will make life very very difficult for you. And if you do it without a fight, we'll even throw you a bone.

Its similar to what Obama did with the 50% discount on BN drugs in the doughnut hole. That discount is not law. It is simply an agreement that obama secured from major drug makers...

Its a very odd political climate we are in. This form of policy making is ripe for corruption...
 
They are going to have to get the money somewhere. Any losses on their gap biz will be passed on to other lines.

Looks like this is part of a deal to pick up a sizable chunk of Medicaid business. Medicaid business also has mandated benefit levels but there are ways to squeeze dollars out of that. My guess is they will pick up the Medicaid on a cost plus basis, essentially guaranteeing them a profit.

I wonder if they want the entire Medicaid block or just the HMO portion.
 
[FONT=Verdana, Arial, Helvetica, sans-serif]Our BCBS of MI is a not for profit corporation and that being said BCBS of MI along with our state attorney general uses that fact to take advantage of the other BCBS of MI policy holders, and this has been going on for years, and it is a shame or should I call it a sham.
Our state has and continues to take from one segment of the society to give to another. I think at one time we were called the welfare state. If I were a person or an employer and was looking for a place to start a new life or relocate, I would cross MI off my list.
The BCBS of MI Medigap policy has been underpriced for years. BCBS of MI charges an additional fee to their group policy holders to make up the short fall. I think it is between 1 and 2 percent, however, I assume 99.999999% of the people don't know about that. Plus starting in January the state has a new 1% medical claims tax to help off set the Medicaid funding short fall.
Per the article it looks like BCBSM cost shifted $220 million last year alone, I wonder what that will look like in the following years.
I hear BCBS of MI radio ads all of the time, and they tout all the good things they do since they are a not for profit organization and have to accept everyone blah blah blah.
Where does all this money come from? It comes from their policy holders that have been left holding the bag. Isn't that nice.
If BCBS of MI were truly holier than thou, they should contact all of their Medicare Advantage policy holders to tell them they have a better
deal. But you know they won't.



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BCBS of MI has entered an agreement with Independence Blue Cross (Philadelphia and the 4 surrounding counties) to provide MA coverage for SNP and Dual Eligibles. No details yet----Keystone Mercy was doing that but only in Philadelphia County.
 
Blue Cross is only going to make that deal....5 year freeze on rate hikes on the med supp premiums if they know their going to make a boat load of money from the government on the new deal with medicaid clients. You are so right insurance guy, it's a joke they call themselves a not for profit company when the president has given himself 50% salary increases at least 2 times in the last 4 years.

They have been sending out surveys to their Medicare supplement clients asking them to respond what's most improtant to them, then the client is supposed to check what's most important, dental coverage, low copays to doctors, prescription coverage included in their plan, etc. It's clear their trying to get their Medicare supplement clients to switch over to their Medicare Advantage plans. If the client doesn't respond, they send out another form saying "Second Request" I've had a few people call me and ask me what they should do and why are they getting this.
 
[FONT=Verdana, Arial, Helvetica, sans-serif]Plus starting in January the state has a new 1% medical claims tax to help off set the Medicaid funding short fall.[/FONT]

How will that be collected? Who's gotta pay that 1%?
 
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