Rumor on Assurant
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You are correct. Clarity is expanding slowly into all Assurant markets and I've heard they will actually be lifting the advance cap around October for that product.
I have yet to hear how Assurant plans on getting around the "no cost sharing" provision regarding wellness by charging coinsurance for wellness on Coremed.
I have yet to hear how Assurant plans on getting around the "no cost sharing" provision regarding wellness by charging coinsurance for wellness on Coremed.
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Credit check on Internet leads. This could get entertaining. Lol.
- 14,808
I'd like to know the cut-off score. 550? 600? 650? If I'm going to make a wild guess, I'd say around 620.
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This does not surprise me.
I think this company is in serious trouble. The clarification of the MLR could shut them down.
There loss ratio on the Individual block is good but if law dictates the MLR they could end up losing money on that book of business.
Bottom line is I think we end up with maybe 5 carriers that are dominate for the entire country. There will be non profit carriers that make it in their regional markets.
The big problem for us is will the carriers pay us to sell?
Yes, you will be paid, don't listen to the disgruntled employees, they can't make any money at the current commission levels.
Naturally, they're going to be doom and gloom at the prospect of actually having to work any harder, or smarter, which is probably an impossibility.
In truth, there are only two carriers that come even close to that (UHC and Assurant) and neither of those are in all 57 states.
I expect UHC to hang in there but not Assurant.
More likely you will have large regionals such as Humana (20+ states) and possibly Cigna (fewer than 20 states). Aetna could be a player but I don't see them bellying up to the bar. Seems like they are trying to run as far as they can in the opposite direction.
Blues are state by state and there may be some actual mergers to allow them economies of scale. Coventry could do the same but I see them bowing out before too long.
Regional HMO's like KP and some smaller HMO's will probably survive.
I don't expect carriers like World to continue. American National has already bowed out and more will follow.
Somarco, correct me if I'm wrong, but didn't you teach your students that competition helped stablize prices and tended to drive them down?
How does reducing the number of carriers fit into your business model of a competitive health insruance market?
I did not have students, Bill. I have followers.
Fewer carriers alone does not mean better rates. Some of the fringe carriers like World, American National, Celtic and others don't really impact the market.
If the idea of health care reform was to truly lower premiums the govt has failed miserably. What they have done is encourage players to exit the market while the remaining ones will hope to garner enough market share to at least break even. If they don't, they too will leave.
This is what we see in the GI states already and if Obamacrap continues without modification, what happened in NY, ME and MA will expand to all 57 states.
Fewer carriers, fewer choices, higher rates.
Fewer carriers alone does not mean better rates. Some of the fringe carriers like World, American National, Celtic and others don't really impact the market.
If the idea of health care reform was to truly lower premiums the govt has failed miserably. What they have done is encourage players to exit the market while the remaining ones will hope to garner enough market share to at least break even. If they don't, they too will leave.
This is what we see in the GI states already and if Obamacrap continues without modification, what happened in NY, ME and MA will expand to all 57 states.
Fewer carriers, fewer choices, higher rates.
I was being facetious. It's an axiom that lack of competition means higher prices, if everything else remains the same.
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