Policy Renewals

[taterpeeler]

Ok, gonna speak cryptic here.....

you figure it out:

According to Company C and H they are going to not term policies until renewal. H has a letter hitting brokers late this week or next indicating no change till renewal.

C indicates they may renew in dec and then hold off till 12/31/14 on the blow up

We know the colored company is blowing up all non gf biz 12/31/13 and I have it confirmed in an email. They will be encouraging all clients to move to a metallic plan in a coming letter...

We know Assurant is keeping things as is till 12/31/14

Comments?

 

[Yagents]

Interesting how each of their lawyer's are interpreting the law, and how each of them are approaching their marketing/sales/termination efforts. The increasing differences between carriers will stretch out our "active" selling season, and require even more guidance from agents who are on top of this changing marketplace.

Change = More $ and opportunity for me (not you )

 

[Ann H]

Yes, this will definitely increase the selling season. It's definite that GROUPS don't have to change until the renewal following 1/1/2014, which means the employer group option is still in play for many employees throughout 2014. And now since IFP plans feel they can pull this off too, it's great news! I agree with YAgents that it also complicates things and makes a broker more valuable.

 

[stuy119]

Ok, gonna speak cryptic here.....

you figure it out:

According to Company C and H they are going to not term policies until renewal. H has a letter hitting brokers late this week or next indicating no change till renewal.

C indicates they may renew in dec and then hold off till 12/31/14 on the blow up

We know the colored company is blowing up all non gf biz 12/31/13 and I have it confirmed in an email. They will be encouraging all clients to move to a metallic plan in a coming letter...

We know Assurant is keeping things as is till 12/31/14

Comments?

Your 'Colored Company' is the same parent as mine in IL, yet I don't think we've received the notice. I don't know if we will soon, or I just missed it.

But to my point: Is the 'Colored Co.' the dominant player in TX, much like it is in IL? They may be banking on the fact that they will have people wanting their plans more than any other company, and see having a "free for all" as the way to go when everything opens up.

Just my guess, but I have no inside knowledge.

 

[AllenChicago]

Your 'Colored Company' is the same parent as mine in IL, yet I don't think we've received the notice. I don't know if we will soon, or I just missed it.

But to my point: Is the 'Colored Co.' the dominant player in TX, much like it is in IL? They may be banking on the fact that they will have people wanting their plans more than any other company, and see having a "free for all" as the way to go when everything opens up.

Just my guess, but I have no inside knowledge.

Stuy119, you received the Producer Newsletter e-mail from the color Blue last week? It said that they were launching a massive campaign to harvest current individual and group customers' e-mails, phone #, texting preferences, etc.. It could be an honest attempt to prepare to communicate the flurry of forthcoming updates, or something more sinister.
-Allen

 

[stuy119]

Stuy119, you received the Producer Newsletter e-mail from the color Blue last week? It said that they were launching a massive campaign to harvest current individual and group customers' e-mails, phone #, texting preferences, etc.. It could be an honest attempt to prepare to communicate the flurry of forthcoming updates, or something more sinister.
-Allen

I did see that, and I completely forgot how it might apply under these terms.

 

[pahealthquotes]

Ok, gonna speak cryptic here.....

you figure it out:

According to Company C and H they are going to not term policies until renewal. H has a letter hitting brokers late this week or next indicating no change till renewal.

C indicates they may renew in dec and then hold off till 12/31/14 on the blow up

We know the colored company is blowing up all non gf biz 12/31/13 and I have it confirmed in an email. They will be encouraging all clients to move to a metallic plan in a coming letter...

We know Assurant is keeping things as is till 12/31/14

Comments?

Largest Blue carrier in Pa will allow insured to stay on current policy until the anniversary date then POOF the Wizard of OZ appears and directs them to a Medal plan.

 

[Ann H]

I just received an email from Humana confirming that they will do early renewals for groups. They are allowing renewals in late 2013 so the group doesn't have to deal with Obamacare until their renewal late in 2014. Humana is also allowing renewals early in 2014 if that's better for the group. They are sending a letter to group clients notifying them of the option, too. I think Humana is brilliant for doing this. It means they are clearly a player, at least in our market. It means they want to retain business rather than have agents switch the client to a new carrier late in 2013 to make a new renewal date. It also spreads out the selling season for brokers, and lessens the workload of OE. If IFP carriers would do the same, and issue a 12-month rate guarantee to their in-force block in October to December of 2013, they would retain their business for another year, too.
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Also, for those of you in other states, a footnote said:

The Early Renewal Option has not been approved in Kentucky. Georgia requires that a group make a plan change when changing their renewal date. Colorado and Florida 1-50 total employees.​

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Oh, this is going to be good information to have. I just read this paragraph in the broker email about Humana's early renewals:

To assist you in talking with your clients, soon you'll be receiving a spreadsheet with your group's effective dates and preliminary premium information to show the possible effects of the Affordable Care Act - Adjusted Community Rating. The estimated renewal change range information is subject to change, but it's a good way to start the early renewal conversation​

As soon as I get those numbers, I'll be sure to share it with you.

 

[stuy119]

Good to see that Humana is out in front on the issue. I wonder if others will soon follow suit?

 

[Ann H]

I hope so. Imagine if an IFP carrier (let's say perhaps one with a color in its name...... hint hint) were to tell policyholders in August 2013 that they are being given 60 days notice that their annual rate increase of a nominal amount (say 8%) will happen in October 2013 (at the same time as the exchange), and that the new rate will be guaranteed for 14 months. That means that those folks who "like their plan can keep it" until December 2014. That also means that if the Exchange is a massive failure, these people don't have to wade through that, and they have not lost their standard plan. Now, that's an idea whose time has come!

I think this would be attractive to a carrier, too. Young people (the preferred risks) would be among those to accept this offer. Poorer people (not the best risks) would jump to the exchange, while middle to upper middle class people (preferrable risks) would keep their old plans as long as possible. It would also help the carrier maintain a book of business during this transition too.