Small Groups

ntbktrader

Expert
88
What is everyone doing for their small groups? Especially in TX??? Breaking them up? Just shopping around and hoping they don't drop group cov?

Also, what is the rate increase everyone is seeing?

Erik
 
Its all over the map.

I have groups that are maintaining group coverage. Some have dropped it. That's based on income of employees and subsidy eligibility. I have transitioned some to individuals.

None of my 10/1's had greater than a 10% increase. 2 had a decrease. Needless to say, they are holding. (I don't have any 9/1's)

BCBS 12/1's should be out at the end of July. THAT'S when we will know.

I'm doing what I always do. Shop it. Adding a page to the spreadsheet for individual numbers. Making sure the decision maker knows I can do both and there's no reason to talk to another agent ;)
 
I've been avoiding breaking groups into individuals like the plague. The individual rates are slightly (5% max) cheaper here now, which is the first time that's ever happened.

Clients want it, but change their mind quickly when I explain the real cost of pre-tax dollars paying a slightly higher premium, compared to post tax dollars paying a slightly lower premium. The 30% taxation is never worth a 1-5% savings. The $100 penalty illustrated in IRS notice 2013-54 is pretty scary as well, and is just another reason not to test those waters.

Carriers have moved around a lot in NY. Networks change, whole counties get dropped. We're losing at least one carrier this year as well-at least one who has notified officially (EasyChoice/Atlantis). It took some research and experience to see who is realistically viable in each county this year.

Other than that, it's been typical renewals. Clients get at least 4 options from multiple carriers that have a solid network in their area. I usually give them an "upgrade" and "downgrade" option, the current plan, and then 2 plans as similar as possible from other carriers.
 
I'm in Arizona. A lot of my groups are grandfathered, and staying, although the rate increases on grandfathered cases are high, too.

I've had only one group elect to drop group insurance and take individual/family plans (IFP), with half of them getting a subsidy. I explained the pre-tax, post-tax problem, but they did it anyway. In their case, the numbers came out about the same between pre-tax group, or post-tax Individual/Family plans with a subsidy. However, the IFP plans will all have rate increases 1/1/2015, and the group plans renew at the 12 month anniversary. I recommended against dropping group for IFP, but it was their choice to do it anyway. Their savings is "phantom", because they will just pay it in extra taxes.

Interesting to note, for new business, group plans trend quarterly and ACA compliant IFP plans change rates on January 1st, so the later it is in the year, the more IFP plan rates look lower than group plan rates.
 
Interesting to note, for new business, group plans trend quarterly and ACA compliant IFP plans change rates on January 1st, so the later it is in the year, the more IFP plan rates look lower than group plan rates.

I hadn't really thought about it until I read this, but my 12/1 BCBSTX groups that renewed to keep pre ACA plans/rates are supposed to have renewal numbers 8/1. And I have until 10/1 to either move them to an ACA plan or hold on the current plan.

I wonder if the individual rates will be available by 10/1? The reality is that none of these groups will go individual (Employer is paying 99% of both employer and dependent premiums) and they all hate ACA, but that's my groups. If we don't have 2015 individual numbers for comparison, that could be an issue.
 
You may not have the actual rate table by 10/1, but news will be out about any rate increases in excess of 10%, because the ACA law says the state DOIs must approve them. We already know that Arizona's low-cost leader (Health Net) will increase rates 14% on the HMO and 15.9% on the PPO.
 
At least in my state, all the major carriers have released their proposed rate increases already.

That said, NY has had this for a while, and has the ability to change the request and approve (I.E. change 15% to 12% and then dictate that those are the rates to the carrier).

They abuse this, and it's known, so carriers submit increases way higher than they need, knowing it will be chopped down to what they actually want anyway.

Moral of the story, I doubt any of us will have approved rates before the exchanges open on 10/15. The gov't jumped through quite a few hoops to ensure the release of that data would be after elections.
 
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