So What's Really Going to Happen to the Group Market

[Crabcake Johnny]

If you want to discuss the potential impact on the large group market, you have to think far out - 5, 15, 25 years.

Let's examine the current system; get a job, get group health, leave job, grab COBRA, get another job with a new carrier/plan.

Over time, that method will change. Leave a job, grab and exchange plan. Going into a job with a new employer, the only reason that employee would cancel the plan they bought through their exchange is if the employer had a better deal.

For lower level employees that's likely not going to be the case:

"Ok...wait. I have a plan right now on my own for $220 per month for my entire family. You want me to cancel that, get your group plan and pay $580? No thanks."

Now again, go out 5, 15, 25 years and you have a slew of workers coming into large companies with their own plans and aren't gonna cancel. Eventually over time participation will go down. Then....

 

[leevena]

If you want to discuss the potential impact on the large group market, you have to think far out - 5, 15, 25 years.

Let's examine the current system; get a job, get group health, leave job, grab COBRA, get another job with a new carrier/plan.

Over time, that method will change. Leave a job, grab and exchange plan. Going into a job with a new employer, the only reason that employee would cancel the plan they bought through their exchange is if the employer had a better deal.

For lower level employees that's likely not going to be the case:

"Ok...wait. I have a plan right now on my own for $220 per month for my entire family. You want me to cancel that, get your group plan and pay $580? No thanks."

Now again, go out 5, 15, 25 years and you have a slew of workers coming into large companies with their own plans and aren't gonna cancel. Eventually over time participation will go down. Then....

Disagree slightly. You are assuming that the new employees costs will continue to stay low. Very few, to none, of the analysis predict this will be true. The cost projections, similar to Mass. are way too low and will soon new an infusion of new dollars.

 

[Crabcake Johnny]

Dunno. As it stands right now, very, very few companies cover the entire family as no cost.

For lower level employees typically a small amount is taken out of their check and to add the family is a much larger cost. The exchanges will solve that since most of those employees will quality for a very large subsidy.

There is no current language in the bill to address this potential issue.

 

[bukev1]

If someone has coverage thru the exchange would that constitute QOC for the employer as far as particpation is concerned?

The current rates on PCHIP.org are pretty high and if the exchanges are similar then they wont be able to compete with ER sponsored plan when you consider the ER contribution.

 

[YouGotMyMoney]

What I dont understand is how u neo con health agents expect to make a living after paying for leads and taxes.

if u get $100 per enrollment, you got to find these people somehow. lead prices wont go down enough for any indy agent to be prosperous. and im sure a family is going to count as 1 enrollment.

 

[Justin Bilyj]

So if group implodes does that mean companies will have to increase OTHER benefits elsewhere to either stay competitive and attract new business?
Will we see Di, Ltci, Life, Accident increase as a result of a business dropping health?

 

[Crabcake Johnny]

What I dont understand is how u neo con health agents expect to make a living after paying for leads and taxes.

if u get $100 per enrollment, you got to find these people somehow. lead prices wont go down enough for any indy agent to be prosperous. and im sure a family is going to count as 1 enrollment.

You give me $100 per enrollment and I'll start hitting small businesses at 10am, wrap it up by 2pm with $1,000 that day. Or I'll just hop on Mojo with a list.

 

[YouGotMyMoney]

You give me $100 per enrollment and I'll start hitting small businesses at 10am, wrap it up by 2pm with $1,000 that day. Or I'll just hop on Mojo with a list.

ok u might. but lets b real for a second.....

 

[Crabcake Johnny]

Why not. I wrote $260,000 in placed business over 3 months when I first started going BtoB 3 hours a day.

 

[taterpeeler]

MArk... see my entire comment to explain how a FEW will make a living at this..... only those that have the unique ability to harvest their own leads without a fee...also, 100 bucks a throw is not going to be the number per family..... i just dont see it.... look at MA plans to give more insight