MLR Discussions

[moonlightandmargaritas]

Its not a pipe dream.

"Eight House Democrats and 17 House Republicans are asking the U.S. Department of Health and Human Services (HHS) to make room for insurance producers on the government's consumer health coverage Web portal."

25 House members out of 435? Powerful.

So if the MLR is in our favor we make close to the same comp on the Individual plan and small group.

Regardless of the MLR outcome, the carriers will seize this golden opportunity to cut comp (they can even blame it on someone else!). Take it to the bank!

 

[stuy119]

If the MLR goes into effect and commissions ARE part of the 15-20%, then layoffs will happen across insurers and agencies nationwide. An unintended consequence will be the spiking of unemployment claims and overall numbers of unemployed, which won't help the 2010 elections for the Dems.

Which will hopefully lead to a repeal of the law (or major changes) and a new President come 2012.

 

[Full Throttle]

If the MLR goes into effect and commissions ARE part of the 15-20%, then layoffs will happen across insurers and agencies nationwide. An unintended consequence will be the spiking of unemployment claims and overall numbers of unemployed, which won't help the 2010 elections for the Dems.

Which will hopefully lead to a repeal of the law (or major changes) and a new President come 2012.

Wishful thinking. I think IRS will cut my tax bill because if I have more disposable income, I'll spend more money and create more jobs in the economy. Surely they will cut taxes instead of risk the next election?

 

[AllenChicago]

Regardless of the MLR outcome, the carriers will seize this golden opportunity to cut comp (they can even blame it on someone else!). Take it to the bank!

100% Right On. In fact, some carriers are arleady using the 80% MLR to reduce agent commissions without waiting to see if HHS directs that commissions are to be included in the formula. I believe there are 2 or 3 of these companies being discussed in ongoing forum threads.

In fact, one of my favorite "small" carriers for health insurance (Standard Security Life) began capping commission advances at $400 per case effective July 23rd. If I didn't sell health insurance with "add on's" like Critical Illness and Accident, the $400 cap would be a real pain. One thing it has done is force newer agents to quickly learn how to package sell, instead of just writing up the health policy and dashing out the door. They'll be happier and more secure in the long-run with multiple income streams. It's just a shame that they had to learn this the hard way.

Here's something I came across recently while researching the Medical Loss Ratio concept. Check out the attachments near the end of this .pdf file from the Minnesota insurance department. The MLR range between companies is huge.
http://www.state.mn.us/mn/externalD...Ratio_Report_052104013421_LossRatioReport.pdf

One thing to note is the lack of some big name insurance companies like Aetna, Cigna, Humana, Prudential, etc.. Minnesota is very strict and burdensome on health insurance companies that choose to do business there, so many of them simply won't operate in that state.

But as strict as Minnesota is, the MLR put forth by Obamacrush makes their state rules look generous by comparison. It will be interesting to see how many, or few, companies choose to get into the new Government Insurance Exchange in 2014. Once the operating rules are disclosed, I'm willing to bet that very few will participate. The premiums will HAVE to be sky-high. So high that even the government subsidies for individuals and families won't make the prices any more appealing. Most healthy families will continue to buy on the open market, just like they do now, IMO.

-A.C.

 

[jbage007]

Very little to disagree with in this thread.

From what I'm hearing, it is becoming more not less likely that GI products will carry 0% comp.

GI=0

That's what I'm banking on and planning accordingly.

The ultimate irony here is that more and more Americans are going to end up buying crap policies outside the exchange, which is exactly the opposite of the intended effect of Obamascare.

IF they carry any at all.

And by the way, I plan to make a killing with plans sold outside the exchange. Surely, I'll learn to sleep at night, especially knowing that any of my clients who really need it can just enroll in the Exchange plan of their choice from their hospital bed.

 

[Crabcake Johnny]

I agree. I was expecting plans in the exchanges come 2014 to pay either a modest comp of 5% or a flat fee. From what I'm seeing I think comp sold on plans in the exchange will be zero - modeling after how much agents receive for selling indie plans in the Mass. exchange...which is zero.

That said, there will be sales opportunities for plans sold outside the exchanges.

 

[somarco]

I plan to make a killing with plans sold outside the exchange. Surely, I'll learn to sleep at night, especially knowing that any of my clients who really need it can just enroll in the Exchange plan of their choice from their hospital bed.

If they can buy health insurance under those circumstances, why would they buy a supplemental plan? Exchange plans cover everything with very little OOP. I can see maybe buying an accident plan, but nothing else.

 

[Crabcake Johnny]

Everyone under 400% FPL, gets near free health insurance. No outside market there. There will be a modest market for those earning over 400% who would rather sit out and pay the fine.

 

[somarco]

Everyone under 400% FPL, gets near free health insurance.

That ride won't last. Not even sure it will make it to 2014.

 

[HealthGuy]

Who can prove to me this Obamacrap (Mao care) will allow plans outside the exchange? Business as usual outside the exchanges? Then why this God forsaken bill in the first place? I don't think Chaiman Obama-Mao will allow this. Serious question.