Aetna...25...30...35...40...Not!

[CHUMPS FROM OXFORD]

Effective July 1 (in Ohio anyhow)...Aetna is changing from the 5-year banded rate to year-by-year, like the rest of the world.

I'm going to miss trying to explain to 49 year old smokers that the rate I quoted was indeed the correct rate, even though it was so low.

 

[somarco]

In my part of the world, BX, KP & Coventry use 5 yr brackets. GR uses (believe this is still valid) 3 yr brackets. Time & Humana do not use brackets.

Haven't heard this from Aetna, but their communication skills are lacking.

 

[CHUMPS FROM OXFORD]

I wonder what the rationale is to use 5-year in one state and 1-year in another.

 

[djs]

I wonder what the rationale is to use 5-year in one state and 1-year in another.

Probably related to a DOI request, which means very little rationale.....ooppsss, did I just type that outloud?

Dan

 

[somarco]

Doubt it is a DOI thing, but then, there is nothing to say that the DOI (or any other govt body) is rational or logical.

Aetna updates here in July, so I anticipate similar action here. My guess is this is just a way to "fine tune" their rates.

 

[taterpeeler]

My guess is this is just a way to "fine tune" their rates.

From the Insurance Dicitonary:
Fine Tune
Verb, the art of screwing the client out of
more premium dollars

 

[TXINSURANCE]

The other big change is rate ups 10 to 100%, instead of 25% and 50% (two tier).

This can be good or bad, time will tell.

The bad is like most carriers, the rate up is a hard sell and is not commissionable.