Sunset for Individual Plans Written After PPACA

[FLM]

I attended a day long meeting with Blue Cross Blue Shield of Florida today with a couple of their senior managers.

While there are some good things in the works for Blue and their agents (potentially) regarding compensation within the Federal Exchange (Florida will not have a state exchange) the thing that most surprised me was that plans sold after PPACA will disappear on their anniversary date in 2014, period. At least that is Blue's position and probably will be the same for the other major players.

For anyone with a renewal book of business, it will be gone in 2014. Hopefully it will be replaced by 1st year commissions for Exchange plans, which will have an open enrollment for 6 months (October 1-March 31st) for the 1st year, then the same 7 week period as Medicare after that (how stupid is that?).

What that means for consumers is that they either go to the Exchange or pay a penalty and either go without insurance or pick up something from a 2nd tier company.

Blue's internal estimates, by the way, that the comparable plan to one of their current Blue Options plan in the Exchange will have a premium increase of between 40-60%.

 

[somarco]

Until HHS issues a ruling no one really knows what happens to plans written after March, 2010.

replaced by 1st year commissions for Exchange plans,

Now that is funny.


Care to define a "2nd tier company"?

As for the estimated 40 - 60% increase in rates, that figure is terribly low. It won't support the GI structure, community rating, etc.

 

[dgoldenz]

I can't imagine millions of people just automatically being kicked off their existing plan...this seems doubtful.

 

[HealthGuy]

What gives Flm??????????????????

 

[Yagents]

You keep relying upon the HHS for guidance, but every company exec so far states NON GF plans will be required to upgrade to comply with PPACA meaning lower deductibles and higher prices. They know more than us or HHS. Glad I have a book of GF plans to ride through the transition.

HHS will offer agents the worst of all commissions in the federally run exchanges.

 

[somarco]

Q. - Which cabinet position appears more than 3,000 times in the PPACA?

A. - Secretary of HHS

 

[moonlightandmargaritas]

I attended a day long meeting with Blue Cross Blue Shield of Florida today with a couple of their senior managers.

The majority of this kind of information should be discounted. They will always massage and spin. Neither objective, or reliable!

 

[bluediamond]

You can discount FLM all you want but what this information has been distributed to all the MGA's and supposedly the ruling was from HHS. We're also being told that all the clients over age 30 on HSA plans will be phased out and only under 30 after Jan 1, 2014 will be allowed to apply for an HSA compatible plan. This one is hard to swallow but I believe Yagents probably knows this one.
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Oh FLM that compensation in the fed exchange is not in writing. If you're in a Federally facilitated exchange state the compensation is governed by the feds and not state oir, but BC is trying to get the feds to agree to let Florida oir regulate it. I don't count on this one since Florida refused the exchange

A lot of things will be tweaked over the next 18 months and I believe quite a bit of we're told is speculation at the moment.

 

[Yagents]

First, who do you think has actually read the law in it's entirety? The insurance company team of lawyers, or the understaffed/overburdened office of HHS/Pelosi?

Second, I'm worried about HSA's surviving, and the only under age 30 HSA comment may come true. Most individual HSA's won't meet the AV value except for the under 30 catastrophic plans. Too many HSA plans out there now, I expect this is one area where HHS will release guidelines to ease the rules on HSA's.
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But this HSA guy feels the opposite: My HSA Guy

HSA's thrive and Agents die

 

[somarco]

Any time there is a new law, regardless of the subject, affected companies try to anticipate how the law will be interpreted by the agency in charge of regulating the industry or situation. They can speculate, based on prior history, but until the regulations are released anything else is just speculation.

Obamacare (2700 pgs) is not even fully implemented and already there are more than 13,000 pages of regs and more coming out almost weekly.

Carriers tried to interpret the law with regard to children under age 19 and took the position that it was OK to decline an application for a child if the cost of the medical condition exceeds the state premium limit.

HHS stepped in and said no, children were GI even though the GI provisions of Obamacare don't kick in until 2014.

Then there was (and still is) the birth control - Catholic church flap which is still unresolved.

You can speculate all day long but until the regs are released by HHS, IRS, DOL and other agencies no one really knows.

Frankly I am surprised HHS hasn't clarified the colonoscopy issue under preventive care. That has already created a lot of confusion and backlash.

And then there are seniors on Medicare that go in for their "free" annual exam only to discover one or more tests were billable because the test was diagnostic, not routine.

As for commissions paid on exchange business, personally I don't trust the process. Of course the PCIP flap comes to mind, and then look at how many agents have been short changed on MA and PDP business.