MLR Refunds - Just in Time for the Elections

[dgoldenz]

Hound, I have restructured my business model to the point where there is almost no interaction with the prospect.

Had a 22 yr old on my site earlier today. He reviewed 3 different applications, 3 carriers, 3 very different plans. Premiums range from $45/mo to $113.

I can make anywhere from $4 to $9 per month . . . plus renewals.

At one time I would pick up the phone and call. Can't justify doing that any more.

This was not my idea but I hope the folks that voted for this clown are happy now.

On the other hand, these cases are great when the policies are PCPM commission. I'll take my $20-25 PCPM all day when I get young healthy people with BCBS that are instant-approvals with $100/mo premiums. Even better with a husband/wife where I can split them to two policies and get paid twice...easy to do since their best policy these days has a combined family deductible.

 

[ABC]

I have to agree with the auto pilot approach.

Unless you are a family I am not calling. Once the leads sites drop off agents with their own sites could pick up more traction on this method.

 

[mcengle]

One company has already issued MLR's. It's a good day when all your clients are calling you to thank you for the check.

 

[somarco]

Why aren't they complaining about being overcharged?

 

[mcengle]

Why aren't they complaining about being overcharged?

Why would they? I explain how the state/federal mandates affect the client before the policy is even written. I also send any and all Healthcare Reform/ACA and carrier updates in my newletters.

 

[somarco]

Rebates, like dividends on insurance policies, are a refund from overpayment.

Difference here is, some of those rebates could be taxable.

 

[AllenChicago]

Why aren't they complaining about being overcharged?

From my past-life experience as a W2 employee, people who have jobs enjoy being overcharged by the IRS, so that they can get the "gift" of an annual tax refund. It's probably the same mindset with the health insurance rebate, even though the $$$ amount is relatively puny.
-ac

 

[Yagents]

Difference here is, some of those rebates could be taxable.

You're right, if I get an MLR refund on my GR policy, it's going to be taxable since I deducted the premium as self employed individual. The $200 won't be worth the hassle come tax time.

 

[somarco]

The $200 won't be worth the hassle come tax time.

If you get a 1099, and my guess is the carriers WILL generate one, you can bet the IRS will cross reference to see if you reported it.

This rebate idiocy get's real messy with group health insurance. How many employers will go to the trouble of prorating the rebate over all employees during the prior year and issue checks?

My guess is none . . .

 

[djs]

Seriously, adding a single 1099 for $200 on your taxes isn't that much work. I'm sure you'll figure it out and cash the $200 check.

I'll make you a deal, send me $200 and a 1099 and I'll report it on my taxes

Dan