MLR Affects on Aetna / Assurant

[Yagents]

Ok, someone want to explain this comment from an Aetna rep:

"Aetna expects to reduce large-group rebates in 2012 by adjusting pricing, and it expects to reduce individual products through its commission strategy, Zubretsky said."

Does this also mean that commissions are going lower even more for IFP? Or, are they at that optimal point now. They are already the lowest in the biz

PPACA Rebates Start to Affect Earnings | LifeHealthPro

 

[AllenChicago]

I just read the article, Bill. If they want to reduce their individual health business, they can reduce commissions even further. I get a puny 4% with them now.

The Aetna spokesman's statement could just be a nice, dipolmatic way of stating that they plan on leaving the IFP market without causing a big media headline.

One thing I've noticed over recent weeks is that AETNA (in Illinois) is now increasing the premium very little, or none at all for Smokers and many health conditions in general.

I had a 5'7" 310 pound guy get a 10% rate-up and a smoker get rated up 0%. (Both Individual Plans) This is probably the result of what the article is describing... a desire to keep revenue balanced just right to avoid the accounting, printing, mailing cost associated with sending out rebates to customers in August 2012. Make it a great week, Bill!
-Allen

 

[dgoldenz]

You had a 310 pound guy get approved?

 

[81Firebird]

This could have something to do with their deal with Costco to sell indy plans. A client of mine who is a costco member, asked me about aetna costco plans.

Why have agents sell their plans when they can have cashiers at costco pushing them? Here is a link to the Costco/Aetna site.

 

[somarco]

Or just put them in a vending machine.

 

[ABC]

The individual carriers are not raising rate like they use to because of the MLR. My entire individual block is averaging around 7%. Pre MLR this was more 19%.

 

[somarco]

The effect is temporary.

Back when managed care was booming it was not unusual on group plans to get 15% discounts for implementing a network with steerage.

That wore off in about 2 years.