Policy Renewals

[AllenChicago]

I hope so. Imagine if an IFP carrier (let's say perhaps one with a color in its name...... hint hint) were to tell policyholders in August 2013 that they are being given 60 days notice that their annual rate increase of a nominal amount (say 8%) will happen in October 2013 (at the same time as the exchange), and that the new rate will be guaranteed for 14 months. That means that those folks who "like their plan can keep it" until December 2014. That also means that if the Exchange is a massive failure, these people don't have to wade through that, and they have not lost their standard plan. Now, that's an idea whose time has come!

I think this would be attractive to a carrier, too. Young people (the preferred risks) would be among those to accept this offer. Poorer people (not the best risks) would jump to the exchange, while middle to upper middle class people (preferrable risks) would keep their old plans as long as possible. It would also help the carrier maintain a book of business during thsi transition.

Yes Ann, 8% plus being guaranteed the same premium through 2014 is indeed a great idea whose time has come. Hopefully the IRS will allow these customers with Non-Qualified health plans to do this, and avoid the penalty-tax. Sure would make our jobs less hectic at the end of this year.

 

[taterpeeler]

Yes Ann, 8% plus being guaranteed the same premium through 2014 is indeed a great idea whose time has come. Hopefully the IRS will allow these customers with Non-Qualified health plans to do this, and avoid the penalty-tax. Sure would make our jobs less hectic at the end of this year.

what the hell you mean end of this year... I have been on the phone for 2 days listening to screaming and hollowering about the religious company that likes colors pending termination..... what a cluster muck

 

[AllenChicago]

what the hell you mean end of this year... I have been on the phone for 2 days listening to screaming and hollowering about the religious company that likes colors pending termination..... what a cluster muck

That's because you're in Texas, where EVERYTHING IS BIGGER. Your BCBS must have started their customer notification campaign sooner than their sister here in Illinois.

 

[Ann H]

The religious company that uses the nomer of "do unto others as you would have done unto you" could stand to gain some medically underwritten accounts with their own marketing campaign recently, and they must be elated to think that on 12/31/2013 a major competitor will push its block of business off the proverbial cliff.

Unless I understand correctly, though, no company is doing a customer notification campaign about impending termination yet, though, ARE THEY????

 

[taterpeeler]

no, I am taking a proactive approach to this... when I got my girl at the main office to put in writing this was fact I went after my client base......

 

[AllenChicago]

no, I am taking a proactive approach to this... when I got my girl at the main office to put in writing this was fact I went after my client base......

So you're giving us a glimpse of what to expect when the companies start notifying the clients, eh? Any tips you want to pass along to your forum colleagues, TaterPeeler?

 

[Yagents]

Tip #1 - don't steal Tater's clients
Tip #2 - see tip #1

 

[taterpeeler]

Tip #1 - don't steal Tater's clients
Tip #2 - see tip #1

that pert near sums it up..... but the last one: blame Obama and keep the 202 area code phone number for the white house on a sticky note to give them... that's what I did

 

[Ann H]

I just got back from a broker seminar sponsored by the big Blue insurance company in Arizona. They will apply PPACA rules to their IFP plans AT THE RENEWAL DATE ON OR FOLLOWING 1/1/2014. This is clearly a different decision (and better decision) than the color companies in some other states like TX, IL, OK have made. Perhaps the company in those states doesn't have a renewal date or rate guarantee date on their policies...???? Perhaps it would be worth it to have a chat with the director of sales of those companies and explain how it would benefit them to give their in-force book a brand new "renewal" or rate guarantee on 12/1/2013 so that the clients have an extra 11 months before PPACA hits them.

 

[Yagents]

I was at the meeting with Ann, and will add my 2 cents.

This "change at renewal" thing is good for some people, but not for others.

Subsidy eligible (below 300% FPL let's say) will still move on Jan 1st, because if they renew in April or later, they will not be able to avoid the rate shock and get on the exchange mid year. Of course, it depends on the plan cost and subsidy amount (300-400% FPL people). You'll need to run the numbers to see if keeping their policy would be cheaper for the whole year, vs a subsidized amount for the whole year.

Higher income (above 400% FPL) who have an early year renewal (Jan - June), will want to move to a new insurance company who has the "at renewal" clause in Nov/Dec 13', to avoid O'care until Dec 14'. BCBS will not allow for changes to their renewal month.