NON Grandfathered Plans - 2014 Premiums?

[Yagents]

What is the downside of switching from a GF plan to a new one? Here in Iowa, we have an April 1 premium increase with the biggest carrier. (I believe they have 85%+ for individual and group) I have a lot of people asking.

I've moved some clients to another carrier, and increased deductible with the same carrier for others to save premium. Only when it makes sense, of course.

My cover-my-backside statement is that we don't exactly know what it going to happen in 2014.

Most of my GF clients take my advice to hold on for the next 6 months until we know how things shake out. These are the higher income clients.

If lower income, then move em' if it makes sense, as you know they can't afford to keep what they got, and they will be subsidy eligible in 2014.

I just had one of my HNW doctor clients biatch about his $800/mo GR HSA plan. I told him he could be looking at $1200-1400 a month in 2014 if he gave up his GF plan. He didn't care, he wanted a $500/mo plan now. So, I told him fine, and I typed out an email explaining the situation and the risk of higher premiums, asking him to send me an email back stating that he understands the probable ramifications of giving up his GF plan. My arse is now covered, and he can't ever say I didn't tell him so, as I have it in writing.

GF plans will last on the books until the premium = the exchange premiums or subsidized premiums. That could take many years of rate increases.

 

[AllenChicago]

What is the downside of switching from a GF plan to a new one?

My cover-my-backside statement is that we don't exactly know what it going to happen in 2014.

CTG, you are correct in stating that no one knows exactly what's going to happen. The primary downside of switching from a Grandfathered plan to a new one at this time, is that the "new" one is subject to all the new mandates coming out of HHS and, thereby, a very substantial price increase. The increases could begin on 1/1/2014..or on the policy's 1st anniversary. There could be several increases and they could occur at any time, as insurance companies adjust to the multitude of new regulations, rules, orders, additional risks, etc..

Leaving a "Grandfathered" plan is like giving up your current wife for a young sweetie, only to learn that she's a gold-digger babe. When you see how stupid you were and try to return to the security of your former spouse, you find that she won't let you back through the door. Hope this helps, CTG.
-ac

 

[taterpeeler]

Leaving a "Grandfathered" plan is like giving up your current wife for a young sweetie, only to learn that she's a gold-digger babe. When you see how stupid you were and try to return to the security of your former spouse, you find that she won't let you back through the door. Hope this helps, CTG.
-ac

Allen going player on our arse.... I'll b daddy gum

 

[ctg]

I find it frustrating that the questions both agents and clients have don't have answers right now.

Guy who just had a colonoscopy with an old plan got charged (toward his deductible) talked to another guy who has a newer plan that covered it as preventitive. Who's better off next year if they both keep their plans?

But they're both at risk of higher premiums next year, correct?

This is a mess. Did the knuckleheads in DC do any due diligence before they passed this crap?

And I do not envy you folks who work with groups. You have an additional level of hell to deal with.

 

[AllenChicago]

CTG, I feel your pain regarding the colonoscopy being free for one client, vs. $xxx for another. I had a similar experience with one of my clients. But, he has lots of health issues and can't/shouldn't move to another plan...yet.

The grandfathered policies will MOST LIKELY NOT increase much in price over the next few years, as compared to how the post 3/23/2010 plans will skyrocket. I have "old" US Health-Freedom Life and American Medical Security clients still on the books, written between 2002 - 2008. Some are seriously ill, like the one I referred to above. The others are getting premium increases each year ranging from 3% to 7%. Any time I run a quote for one, I can't get close to the price they're paying for the same benefit level. So, they stay put until (???). I suppose it will be up to individual carriers to determine that.
-ac

 

[timsip]

my carriers are telling me expect 40% increases! This is when liberals are going to say maybe ACA is not so great!! Hitting the pocket book HARD seems to change peoples values. I have a big book of non-grandfathered contracts and really feel for them. Had I known then I would have never let anyone change a deductible to save premium xince 3/23/10.

Do you honestly think the liberals will blame ACA? Heck no! It will be the big bad insurance company's fault and they will find some way to twist it that way! That or blame Bush somehow!
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My cover-my-backside statement is that we don't exactly know what it going to happen in 2014.

That isn't a CYA statement, it's the most honest anyone can be...including HHS!

 

[Yagents]

Ok, so I just got this email. Very interesting........it might make sense to roll your NON GF book to the companies who are interpreting the law like this. Assurant and Goldenrule are two so far. Be sure to read "how it works" below


[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]Sell Assurant Health's individual major medical— benefits and rates won't change until December 2014!*[/FONT]
[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]When you sell plans effective April 1, 2013 through December 28, 2013, you're selling your clients the certainty that their benefits and rates will stay the same until the end of next year. Most important, your clients are the ones making the choice—and if they decide they want a plan with complete health care reform benefits as of January 1, 2014, the choice is theirs. [/FONT]

[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]* As long as clients don't make any plan changes.[/FONT]

[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]Available for individual major medical plans effective April 1 through December 28, 2013 in 32 states!
[/FONT][FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]
Available in AL, AK, AR, AZ, CA, CO, DC, DE, FL, GA, IA, ID, IL, IN, MI, MO, MT, NC, NE, NV, OH, OK, PA, SC, SD, TN, TX, UT, VA, WI, WV and WY.[/FONT]Image:

Image:

[FONT=Palatino Linotype, Book Antiqua, Palatino, serifno]
How it works:[/FONT]
[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]Many key components of health care reform (including covering essential health benefits and moving to new rating parameters) apply to policies beginning their first plan year on or after January 1, 2014. [/FONT]
[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]• The policy's plan year begins the policy effective day in December.[/FONT]
[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]• This means that the policy's effective day of the month is the date in December 2014 that health care reform benefits and associated rates will be applied to the plan. [/FONT]
[FONT=Trebuchet, Trebuchet MS, Arial, Helvetica, sans-serif]• For example, if your client's plan effective date is April 15, 2013, the plan year will begin on December 15 and the original benefits and rates will apply until December 14, 2014. The plan will receive full health care reform benefits and any applicable rate changes on the first day of their new plan year—December 15, 2014. [/FONT]

 

[taterpeeler]

Bill... Is golden rule doing the same thing?

 

[Yagents]

Bill... Is golden rule doing the same thing?

No rate guarantee, but are reading it as plan year renewal to upgrade

 

[cadylou]

All of the carriers are putting things out with false promises because they are desperate for new business since many of us abandoned actively marketing new business since they cut our commissions due to MLR. I simply delete these messages. If someone comes to me & asks for individual health, I give it to them, but I don't actively market it or advertise. I can't afford to pour money into something that may not last or may be taken from me in the end. . . .