Non-US Insurance Companies Exempt?

[somarco]

Got an update from Cigna (along with everyone else) on the "no surprise" MLR ruling by HHS Shebullshits. One thing at the bottom of the Cigna memo caught my eye.

Non-US insurance companies are exempt from MLR reporting.

This is very intriguing.

A fellow agent sent me the Cigna email (which I already had but had not opened) and wanted my feedback on the relaxed rules for 2011 on mini-med plans. However, below that was the issue about non-US carriers.

This prompted my reply.

Go back 20+ years or so when self funded plans with stop loss insurance was becoming popular in groups less than 1000 lives. Because US based health insurance carriers were prohibited from offering such plans (stop loss) foreign companies, most notably Lloyds, were major players along with Swiss Re, NRG (Netherlands Reinsurance Group), Sun Life, Manu Life and a few others. Even saw Tokio Fire and Marine on some risks.

P&C companies quickly figured out the ban was on US health insurance companies so carriers like Safeco, Travelers and some minor players got in the game.

This makes me wonder if this opens the door for foreign companies to get in the game and spoil the market? They can apparently skate on the MLR issue but the plans themselves would have to comply with other issues (mandated benefits) or else the insured is subject to a fine.

I also copied a retired large case underwriter who would be very familiar with the history of stop loss in the US as well as informed on the inner workings of regulation.

Unfortunately my contacts in the reinsurance intermediary market are too far in the past to really do anything. At one time I could have had one or more carriers signing on to this concept in 6 months. Not sure anyone wants to wade in to this mess or not but it sure would be interesting if someone like Fortis decided to re-enter the market with a fully insured product.

 

[TXINSURANCE]

Good thing I am based in Belize. No wonder everyone is offering me such high contracts in 2011!

 

[somarco]

Looking for sub-agents?

 

[ABC]

"Non-US insurance companies are exempt from MLR reporting."

I also saw this. I think we could see some Foreign companies open their doors to the health insurance markets.

Cigna, Wellpoint, UHC, Etna, and maybe a couple of others will open up new companies. This is a serious loop hole of the MLR law that no one it talking about. I think the carriers want to keep on the down low.

No matter what happens these carriers are going to still make money.

 

[YouGotMyMoney]

"Non-US insurance companies are exempt from MLR reporting."

I also saw this. I think we could see some Foreign companies open their doors to the health insurance markets.

Cigna, Wellpoint, UHC, Etna, and maybe a couple of others will open up new companies. This is a serious loop hole of the MLR law that no one it talking about. I think the carriers want to keep on the down low.

No matter what happens these carriers are going to still make money.

Only thing I care about is if I can make money.

 

[somarco]

At least in the P&C business, agencies and consulting houses have used offshore captives to circumnavigate US laws and provide coverage. It will be interesting to see if this gravitates to the health insurance market for fully insured business.

 

[ins.dave]

Only thing I care about is if I can make money.

What an originally refreshing view point...?
WTF is this about?
What are they up to?

 

[YouGotMyMoney]

How's the weather in Kansas?

 

[ins.dave]

How should i know?

 

[somarco]

Don't you get the Weather Channel?