Trump Signs Executive Order for Insurance Reform ?

[Tim Resnick]

The Trump administration took the final step Tuesday in its plan aimed at making health insurance policies cheaper for some small businesses.

link

Not sure what this means, but apparently there will be opportunities for some small businesses to form GROUPS and shop for coverage outside their primary state.

 

[Yagents]

Best article so far on the subject. Could be good, probably bad for non group agents. Not in effect until April 2019. Depends on who will be playing in Trumpcare.

Trump's Association Health Plans Will Be Like Big Employer Plans: DOL | ThinkAdvisor

 

[Justin Bilyj]

And individuals will still see higher prices...

 

[SamIam]

What are they talking about "Agents receiving reasonable compensation" .

 

[Ann H]

Will it be good? Will it be horrible? Will it be a non-event? You will know when the carriers start responding (or not responding) with products.

No response? Dead in the water.

Only "C" rated carriers respond with garbage plans? Your book of business only loses the clients who won't listen to sound advice anyway?

A solid carrier actually creates a quality product for an association plan like this, with better rates? Well, consider me surprised, and start writing the biz.

 

[Tim Resnick]

Will it be good? Will it be horrible? Will it be a non-event? You will know when the carriers start responding (or not responding) with products.

No response? Dead in the water.

Only "C" rated carriers respond with garbage plans? Your book of business only loses the clients who won't listen to sound advice anyway?

A solid carrier actually creates a quality product for an association plan like this, with better rates? Well, consider me surprised, and start writing the biz.

So,...you will be writing more groups (i suppose). Groups on ###ty plans or?

We don't know what this means (other than the boundaries of state lines are being changed).

 

[junkman]

We've seen this smoke and mirrors before. Any "Association" is an entity and the contract will be between the association and the employer. The Association will rent a network and administrator just like a self-funded plan which it will be.

Claims and consequently rates will be lower than ACA compliant plans because reduced benefits allowed in the plan design. These will be new pools with a 3 month claims lag just like large group changing carriers.

Association will close to new business whenever it becomes uncompetitive due to claims and close altogether when it makes sense from a business stand point of the Association. Commissions might be higher than normal group written by a carrier as a way of bribing agents to sell this.

I remember Cariten coming into the Nashville market 15% under what other carriers were charging. We showed the Cariten crap because other agents would if we didn't. We then sold against them. Clients couldn't resist the cheap price and bought against our recommendations anyway then had trouble getting claims paid. Be sure to put in writing that XXX trust is not your recommendation because (whatever reason) but you'll help them implement if that is their choice. That way you may not get blamed when things go south.

Changing geographic boundaries does absolutely nothing for claims which is what needs to drop for rates to go down. Smoke and mirrors - that's all (and Congress knows it).

 

[leevena]

As Ann stated, time will tell just how successful this will become. But I do not ascribe to Junkmans belief that this is all smoke and mirrors.

I suspect many of these programs will not survive. But there are many successful programs now operating with similar structure as is being proposed in this plan. Most are self-funded, and I suspect fully-insured options will not fare well.

 

[junkman]

It is easy to reduce premiums. Simply reduce benefits or access in the form of narrower networks or pre-cert etc. Alternatively, underwrite &/or add in pre-ex - the more stringent, the lower the premiums.

Self-funding only allows the employer to hold the reserves. Yes, if you know that your group is healthier than the pool, this may save some money AND, anyone that considers self-funding to have the same guarantees as fully insured hasn't dealt with a group when things go south. Regardless, it is no panacea.

We as agents and insureds were thrilled when HDHP came out. A small group could essentially have a fully insured plan with a spec = whatever the out-of-pocket was and an aggregate of whatever the number of members X the OOP. We could also get a tax deduction for putting money that would have been spent on premium or taxes into an HSA. Now, things are so screwed up that a HDHP is out of consideration to many and options that were so stripped down as to not be considered as "coverage" are open for discussion.

The proposed changes are a move to no insurance then government insurance. When only the wealthy have access to healthcare and food, we have a revolution. The lady that supposedly but probably didn't say "let them eat cake" ended up with her head off.

 

[leevena]

Junk man.

While I tend to agree with most of your post, I do not with your comment about self-funding and reserves. I started in the self-funding market in 1983. If you believe that the advantages of self-funding is that it allows the the employer to hold hold their reserves, then you have a very limited understanding of the subject. There is so much more.