New Survey Shows Devastating Effects of MLR

[bill3173]

They may be devastated now, but if they don't replace their major med with other products that provide a similar renewal income, they're going to be poor.

It doesn't matter how cute you think you are, that ax is going to fall sooner or later, and it's going to be ugly, if you haven't planned for it.

 

[CHUMPS FROM OXFORD]

Absolutely. Get out now and I mean now. Not tomorrow. Today.

 

[bill3173]

Why don't you get out now and let somebody service your tea cup poodle block of business.

 

[CHUMPS FROM OXFORD]

I am out. Have been out for a while. Gone. Done.

And what the heck is a "tea cup poodle block of business"?

 

[AndreaSti]

I am out. Have been out for a while. Gone. Done.

And what the heck is a "tea cup poodle block of business"?

Paris Hilton and her friends?

 

[CHUMPS FROM OXFORD]

Ah. Ok. I do have some of those. A few thousand.

 

[AllenChicago]

Now that we're well into 2011 and the Medical Loss Ratio rule implementation, many of the smaller companies (and maybe some of the larger ones?) are still imposing 25% to 40% premium increases on existing clients.

What are they thinking? Are these companies trying to scoop in as much cash as possible and then close the doors? Get as much $$$ as possible, return the principal to the customers and keep the interest earned?

It's baffling to me why a health insurer would raise a premium by over 30% this year, knowing that they'll have to refund a good chunk of it back to the customer in August 2012.

I used to believe that companies under a certain size were exempt from the MLR rules, but this Government MLR fact sheet Medical Loss Ratio: Getting Your Money's Worth on Health Insurance | HealthCare.gov says that the law applies to almost all, with only a couple of exceptions.

Any informed ideas or thoughts on this?
-Allen

 

[taterpeeler]

question... how do you know they will be FORCED to refund it back next year... what if they are withing guidelines and needed the increase to acheive profitiability....

another question... are you a democrat?

 

[TXINSURANCE]

You don't think all those PPACA mandates and state mandates impacted rates significantly on top of trend?

In theory the MLR would lower rates not them. Just ask Jay Rockefeller. He wouldn't lie.

 

[Ann H]

Hmmmm let's count the reasons:
1) - rates really did go up
2) - new mandates made rates go up more
3) - collect excess premium now, refund in 18 months while earning interest
4) - collect excess premium now, don't refund in 18 months if the MLR rules change (even the part that exempts broker commissions from the MLR)
5) - collect excess premium now, don't refund in 18 months if the law is ruled unconstitutional