States Reminded to Implement OEP for Exchanges

[Crabcake Johnny]

AHIP is giving a friendly reminder to the NAIC that they need to encourage states to set open enrollment periods, citing the Massachusetts fiasco.

AHIP: Exchange Makers Should Mind Enrollment Periods - Regulatory,Legislative and Tax Issues - Life and Health Insurance News

MA now has two enrollment periods per year in an effort to curb gaming the system. And it's working. Utilization is down and MA could actually make this work.

This will be adopted by each state and will be very interesting. Currently anyone can purchase coverage so long as they qualify. However, when the exchange is implemented in your state they'll likely have a 2 month enrollment period. Outside of that? You're underwritten and must purchase a plan outside of the exchange.

This has a lot of implications for agent's careers since possibly 10 months out of the year you won't be able to sell any exchange plan. All plans sold will be outside of the exchange. Of course, since plans sold outside of the exchange will not be GI, it means higher comp then what we'll likely receive by selling exchange plans.

So the "exchanges will put us out of business" mentality won't play out.

 

[VolAgent]

AHIP is giving a friendly reminder to the NAIC that they need to encourage states to set open enrollment periods, citing the Massachusetts fiasco.

AHIP: Exchange Makers Should Mind Enrollment Periods - Regulatory,Legislative and Tax Issues - Life and Health Insurance News

MA now has two enrollment periods per year in an effort to curb gaming the system.

This will be adopted by each state and will be very interesting. Currently anyone can purchase coverage so long as they quality. However, when the exchange is implemented in your state they'll likely have a 2 month enrollment period. Outside of that? You're underwritten and must purchase a plan outside of the exchange.

This has a lot of implications for agent's careers since possibly 10 months out of the year you won't be able to sell any exchange plan. All plans sold will be outside of the exchange.

If you can get the states to spread it out around the year, it will be pretty good for internet/phone agents and call centers. They'll have business year round. Just a slow rotation through the states. Although, I can just see the antics that will go on as the month draws to a close.

 

[Crabcake Johnny]

True. MDs OEP is Jan-Feb and VAs is March-April. And how priceless will this call be?

"Hey, I need to get a plan real fast to cover a surgery, but I can drop it after that, right? In any case, let's get a move on."

"I'm sorry, open enrollment ended two days ago but good luck with that surgery."

 

[VolAgent]

True. MDs OEP is Jan-Feb and VAs is March-April. And how priceless will this call be?

"Hey, I need to get a plan real fast to cover a surgery, but I can drop it after that, right? In any case, let's get a move on."

"I'm sorry, open enrollment ended two days ago but good luck with that surgery."

For the MD resident this will quickly be followed by. "But you're in luck sir. I have a quick residency special for VA. A one time, non-refundable fee of $5,000 gets you VA residency in 10 days. You're premium will then be $500 a month. What is your credit card number?"

 

[dgoldenz]

True. MDs OEP is Jan-Feb and VAs is March-April. And how priceless will this call be?

"Hey, I need to get a plan real fast to cover a surgery, but I can drop it after that, right? In any case, let's get a move on."

"I'm sorry, open enrollment ended two days ago but good luck with that surgery."

Since when does VA have an open enrollment period? I haven't seen anything about that from any VA companies...even CareFirst got rid of their OE for kids and they were the only company doing it in Jan/Feb.

 

[Crabcake Johnny]

We're talking about the exchanges in 2014.

 

[dgoldenz]

We're talking about the exchanges in 2014.

Do you have a link? VA's been fighting the law hard, I'm surprised they've already decided on an OEP. That's still better than "sign up any time you want" though.

 

[Crabcake Johnny]

VA will have an exchange whether they want it or not. If they choose not to administer it then the government will.

 

[Full Throttle]

Just wait until MA marketing rules apply to the exchange business. Basically, only passive marketing allowed and we will not pay you much for it.

 

[Crabcake Johnny]

Won't matter since most agents will still work internet leads.