The Worst Possible Policy...

[CHUMPS FROM OXFORD]

Bizarre...but true...

I received this email late last week:

Hello.
My name is Jeff XXXXXXXX and I was referred to you by XXXXXX XXXXXX, who works with me.
Here is my situation. I am 51 and going through a divorce. I am required t furnish health
coverage for my soon to be ex-wife. She is also 51 and has no medical issues.
I want the absolute worst possible coverage with the highest deductible you can find. I
am not required to furnish office visit or prescription coverage. Just major
things. Please call me at your earliest convenience. I'm located about an hour and a half from you
in Westerville, so perhaps you could mail me all of the forms with your recommendations.
Thanks
Jeff

Funny...but sad. Anyhow, after speaking with him and documenting that this is truly what he wants, I sent him the paperwork on a $93 monthly policy from Aetna that has a $ 5 mill cap and a $3000 deducible. Preventive coverage is even included, although he won't like that.

I attached a short disclaimer for his wife to sign as well.


Anything like this ever happen to you?

 

[somarco]

Is that the hospital/surgical plan Aetna writes?

How did it compare with a Core Med with $10k deductible or Max with $25k?

 

[Crabcake Johnny]

I would never take on that client.

 

[CHUMPS FROM OXFORD]

Is that the hospital/surgical plan Aetna writes?

How did it compare with a Core Med with $10k deductible or Max with $25k?

It is their P&H Care 3000 plan.

The Assurant Core Med ($10K ded. 80% with no facil fees or office visits) was $85. He thought about that one, but must have softened up a bit and bit the bullet for the extra 8 bucks per month. The Max plan was $68 but he again, didn't want the high ded.


And John...I understand your feelings on that one. I thought about passing, but when he softened up a bit, I figured he was all talk.

 

[Sam]

That is hilarious!

 

[Crabcake Johnny]

I'm always thinking about potential liability and my brother is an attorney so I think along those lines also. If you really did give "the worst" coverage to spite the wife that's not only an ethical violation, possible an insurance violation but also a slam dunk lawsuit if the wife were even to find out that you colluded with the husband to design a poor plan.

That being said, it is funny as hell.

 

[Beth F]

That is hysterical.

 

[natem2112]

Just maybe his idea of lower priced means the absolute worst.

I personally think that this is pretty funny as well.

Just make sure you have both parties sign off on what exactly they have.

 

[CHUMPS FROM OXFORD]

I'm always thinking about potential liability and my brother is an attorney so I think along those lines also. If you really did give "the worst" coverage to spite the wife that's not only an ethical violation, possible an insurance violation but also a slam dunk lawsuit if the wife were even to find out that you colluded with the husband to design a poor plan.

That being said, it is funny as hell.

After 26 years in the business, believe me...I am always thinking about liability issues. Most of you aren't as involved in the Financial Planning side of the business as I am. There are plenty of NASD and SEC regulations that keep you on your toes.

Ironically, the policy I offered was clearly not one of the worst, but one of the least expensive. I'm not aware of any collusion to design a poor plan. Perhaps you misunderstood my wording.

Good points though.


And yes...it is all rather funny.

 

[STIBROKER]

I could have totally sold this guy a family HSA ....with the point that yes even though you have to furnish health insurance .......but your also on the hook for half of your sons out of pocket expenses that the health insurance puts toward any deductible and expenses not cover.......