Rand Paul Group Association Plans

[HealthGuy]

How about a licensed health and life insurance agent association to pool rates LOL I think this association plan idea is kinda ridiculous...Hasn't this been tried before and it really doesnt do a darn thing to lower rates, come on, it sounds nice but really ??? WTF

 

[somarco]

Actually it has worked before, many times, until the folks running the program get stupid, greedy or both. Try reading the thread again. You must have missed the situations where they worked.

Until GI is banned and sick people are put in a subsidized risk pool, rates are not coming down.

And until carriers can at least break even without BS govt rules, they aren't going to pay agents to help them lose money.

Any questions?

 

[kgmom219]

We have had those in Texas for 10ish years. (Maybe more)

Pre ACA, they were the same rates and had the same underwriting rules. Hmmm...they didn't bring the rates down, either.

We need pre-ex rules along the lines of HIPAA (pre-ACA). Rates will stabilize and begin to drop after 3-4 years, after we get enough healthy people in the pool.

Except....

If you don't have to bake the cake, you don't have to sell the policy. Everyone keeps forgetting that the carriers have to buy in.

 

[AllenChicago]

What I liked about the old health insurance plans tied to Associations, were the association benefits.

Take a look at page 11 of this 2009 brochure from IHC Health Solutions.
http://www.thinkihc.com/products/brochures/fhp.pdf

The Roadside Reimbursement and Accident/Injury features were the 2 most used benefits of the Communicating for America (C.A.)association.

C.A. still exists, but the benefits are laughable.

 

[HealthGuy]

Bob: Thanks for the reply....All of the association plans (like KG mentions) that I have seen did nothing to lower anyones rates...they gave the appearance of a "special deal" because of the "association" but they were all a farce. I truly have never seen an association that did anything, all were smoke and mirrors.

 

[Ann H]

Bob: Thanks for the reply....All of the association plans (like KG mentions) that I have seen did nothing to lower anyones rates...they gave the appearance of a "special deal" because of the "association" but they were all a farce. I truly have never seen an association that did anything, all were smoke and mirrors.

There are 2 real issues to will tell whether or not an association plan will work.

1 - Group
2 - Underwriting, both for health history and industry

Group works. Employed people are healthier, and get health care regularly enough to stay healthy. Participation requirements forcing groups to enroll a minimum number of eligible people works. Employer contribution toward the premium helps. Tax advantages help. Adverse selection is even lowered when the Employer selects the plan choices that are offered to employees.

Underwriting for health history works, and we all know that. But underwriting for industry also works. Somarco & RayNY have both alluded to this. If you are not eligible for the plan unless you went to 8 years of school to be a Dentist, or a Psychiatrist, then the carrier has selected a better risk. If industries like civil engineers are eligible, but not long-haul truck drivers, then the carrier has selected a better risk.

UHC currently has a plan for the ACEC (American Council of Civil Engineers) that is awesome. Rates are great, benefits are better than offered in UHC's small group market, and it is stable. Of course, you have to be a Civil Engineer to get the plan, and you must meet participation and contribution requirements, and you must pay a fee to the ACEC to be a member. Once a group of Civil Engineers goes on the ACEC plan, they almost never leave. Civil Engineers are conservative, cautious, well educated, make analytical decisions, and are good with financial decisions. They pay their premium regularly.

An association for Realtors is another story. They are usually "one-man shops", so participation requirements don't hold. They change careers often. They don't invest years of schooling to obtain that career. They go through financial hard times during market downturns. They are not known for holding a health insurance policy long-term. Pert near anyone can get a real estate license, join the association, have a claim, and let the policy lapse.

 

[somarco]

WTF guy, just because you have not seen association plans that worked doesn't mean they never existed.

You are entitled to your opinion. You are not entitled to make up your own facts.

 

[leevena]

WTF guy, just because you have not seen association plans that worked doesn't mean they never existed.

You are entitled to your opinion. You are not entitled to make up your own facts.

You are correct bob.

 

[HealthGuy]

LOL I believe you Bob, just having a little fun in here...I always thought Association plans were bogus, but seems as if there were some valid ones...All good.

 

[kgmom219]

LOL I believe you Bob, just having a little fun in here...I always thought Association plans were bogus, but seems as if there were some valid ones...All good.

And wouldn't it be state specific?

Our legislature made all this hoopla when they passed the Association laws.

Then the carriers rolled them out...with the same underwriting, because our legislators can't draft a law correctly.