Why Stay Grandfathered when You Save 12k for Not?

[InsureTexasNow]

I feel like I am missing something. I just recieved a 1/1/2011 renewal for a client and the same plan is 12k cheaper for not staying grandfathered. I have read the act and am having a hard time suggesting that they do stay Grandfathered. What am I missing? What benefits are worth 12K?

 

[HealthGuy]

There is NO benefit staying grandfathered. Move him.

 

[DS4]

I feel like I am missing something. I just recieved a 1/1/2011 renewal for a client and the same plan is 12k cheaper for not staying grandfathered. I have read the act and am having a hard time suggesting that they do stay Grandfathered. What am I missing? What benefits are worth 12K?

Does your client have to have underwriting approval to go from grandfathered to non?

 

[669comche]

That will be the kicker.......he will have to re qualify.

I have just had a similar weird case with BCBSTX.

Client currently paying $250 per month. Wants lower premium. To downgrade from current plan to $10k deductible premium will go down to $202 (with no underwriting)

If they underwrite she can get the exact same plan for $168.

She is doing the underwriting.

 

[TXINSURANCE]

$12,000 cheaper? What am I missing... $1000 per month?

 

[DS4]

$12,000 cheaper? What am I missing... $1000 per month?

If they can't pass underwriting, the savings is an illusion.

 

[STIBROKER]

also....the long term rate increase's seems to me would be higher down the road with the new plan with all the bells and whistles than staying on or changing to the $10 ded......

That will be the kicker.......he will have to re qualify.

I have just had a similar weird case with BCBSTX.

Client currently paying $250 per month. Wants lower premium. To downgrade from current plan to $10k deductible premium will go down to $202 (with no underwriting)

If they underwrite she can get the exact same plan for $168.

She is doing the underwriting.

 

[VolAgent]

also....the long term rate increase's seems to me would be higher down the road with the new plan with all the bells and whistles than staying on or changing to the $10 ded......

How do you figure? The old block is closed, won't it slowly, or quickly, enter the death spiral that is so common to closed blocks of business?

 

[ABC]

How do you figure? The old block is closed, won't it slowly, or quickly, enter the death spiral that is so common to closed blocks of business?

I think this is very accurate.


The only cases that should look to stay grandfathered are large group plans.

 

[STIBROKER]

The new plans will be paying claims that the old are not....more out going money equals higher prem. increases...

How do you figure? The old block is closed, won't it slowly, or quickly, enter the death spiral that is so common to closed blocks of business?