State Farm Agents - Now Selling Obamacare?

[sbkarren]

I am really curious to hear the thoughts of State Farm Agents in Illinois, Texas, Oklahoma, New Mexico and Montana, about the news today that State Farm is teaming up with Blue Cross and Blue Shield to sell Obamacare health insurance plans.

S. Boyd Karren
CMO
Engagex Corp

 

[insurance404]

It sounds like the captive agents are only going to be selling ONE carrier...

Honestly, I would be concerned about an E&O claim for recommending only ONE health product. Some companies in WA have policies that are crafted specifically for certain health issues and picking the WRONG policy would literally cost them a few thousand more per year.

Individal health insurance is about 75% of my revenue, so I know what I'm saying.

 

[kgmom219]

I'm a health agent and this really isn't a big deal.

In Texas, they have been selling Assurant for years. The "hungry" State Farm agents actually sell it. The established ones send it out. I have 6 or 7 who refuse to sell health and send those clients to me.

 

[bobson]

It sounds like the captive agents are only going to be selling ONE carrier...

Honestly, I would be concerned about an E&O claim for recommending only ONE health product. Some companies in WA have policies that are crafted specifically for certain health issues and picking the WRONG policy would literally cost them a few thousand more per year.

Individal health insurance is about 75% of my revenue, so I know what I'm saying.

I hope they sell on the exchange and then when subsidies are wrong or whatever other mistake happens they will be mad at the State Farm agent and will likely shop the car and home insurance.

 

[LGilmore]

Some companies in WA have policies that are crafted specifically for certain health issues and picking the WRONG policy would literally cost them a few thousand more per year.


And what plans would those be? Sorry calling shenanigans on that statement.

WA state pretty much is a cookie cutter plan offerings as they adopted the Clinton plan back in 1994. So which plans were/are different?

 

[insurance404]

LGilmore. If someone takes expensive prescriptions one plan covers them for $30 and another carrier covers 50% up front. If your Rx is $500/mo one plan costs you $250/mo and the other $30/mo.

Other big differences for Mental Health visits (some are before and some after deductible), one carrier has a combined in and out of network MAX.

I get a lot of business from other agents that don't know the differences.

 

[LGilmore]

"LGilmore. If someone takes expensive prescriptions one plan covers them for $30 and another carrier covers 50% up front. If your Rx is $500/mo one plan costs you $250/mo and the other $30/mo."

So you so them the side by side plan differences every plan offers? How is that special? I mean that is expected business practices when comparing health plans. You compare plan differences. Are you checking the medications as to where they land on the formulary tiers?

"Other big differences for Mental Health visits (some are before and some after deductible), one carrier has a combined in and out of network MAX."

Again, just a review of the plan summaries and normal agent practices when offering more than one plan choice.

" I get a lot of business from other agents that don't know the differences. "

My guess would be they are P&C agents.

I mean do some plans have better RX options? yes, also different costs for that choice.

But to claim they specialized for certain health issues isn't an honest statement to make, unless you can show by formulary which plans do better for certain illness.

Otherwise you're just talking plan design which there isn't a great huge difference as the plus or minus a benefit in a plan is reflected by price. NO Washington plan is set up for a certain condition.

More than welcome to have you use an example beyond the copay and deductible that creates a best plan for certain health conditions.

I would be very CAREFUL selling plans in this state with anything like "this is the best plan for cancer, or heart attacks, diabetes or what ever... big trouble headed your way if you are.

If you're asking are you an RX user and then comparing the RX features in comparison that's fine. You should also check their medications against each plans formulary as they may be different tiers there. Sometimes they are, so I hope your checking.

The problem you could run into is selling any of these health plans as the "best diabetic" plan in WA when you don't know for sure where the diabetic medications fall in their formulary tiers. While the copays and percentages may be better in one plan, they may not be optimal for a certain condition based on where the carrier places that drug in their tiers. You might be taking a drug from a copay to a percentage without knowing.

Cheers.

 

[insurance404]

LGilmore, we are agreeing...as selling auto insurance doesn't differ much from carrier to carrier. While only selling a Blue Cross plan can be quite a bit different from a Blue Shield plan!

Your getting into a semantics, I had to post that reply quickly as a meeting was starting...

Honestly there are some plans that are easier to get pre-approval for at times.

On the Health Exchange the plan summaries are crap...they often don't explain the hospital network limitations. Good luck picking a plan by just comparing them...one carrier in WA does NOT cover on the job injuries at all.

Many health specific agents are just giving up. Some are not going over even basic details.

You are correct about agents that just dabble, they have no idea. Yet often find usually older agents that have a decent book of business just let it roll over from year to year. You can't do that with the ACA plans anymore due to all the dramatic changes...

 

[LGilmore]

Honestly there are some plans that are easier to get pre-approval for at times.


Are you sure you want to go with that statement?

Think a bit.

How long have you been doing this?

one carrier in WA does NOT cover on the job injuries at all.


ER ah, NO carriers in WA cover on the job injuries. WA is a state where on the job injuries are covered through the state run and managed L&I program.

Are you referring to business owners being insured? Which company does not provide 24 hour coverage for business owners if they do not participate in L&I?

Your spirit is great, but I'd be a bit concerned taking advice from you.

 

[HuntAssuranceGroup]

I am really curious to hear the thoughts of State Farm Agents in Illinois, Texas, Oklahoma, New Mexico and Montana, about the news today that State Farm is teaming up with Blue Cross and Blue Shield to sell Obamacare health insurance plans. S. Boyd Karren CMO Engagex Corp

Anyone know if they are in NC?

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