Had an interesting meeting with our Anthem rep this morning, and two items she shared with me stand out:
First, I've been wondering for a while about how insurance sales will work outside the Exchanges. That is, since only Exchange-compliant plans will be acceptable coverage under The ObamaTax, why would carriers bother to have two different product lines? I had guessed that they wouldn't, but our rep told me that the plans available on the Exchanges would, in fact, differ from those sold outside of them.
Exchange-based plans will be eligible for subsidies (which does not mean that purchasers will actually receive them), and have much tighter (smaller) networks. Plans sold outside the Exchanges won't be eligible for any subsidies, but will have bigger networks, and thus more offer more choice in actual health care.
The second thing she told me had to do with so-called "grandfathered" plans. I was surprised to learn that up to 50% of Anthem's individual plans are still grandfathered in. She also told me that they're expecting a major influx of fourth quarter new business.
Hunh?
It makes sense: non-grandfathered plans will stay in effect until their first renewal after January 1st. So if your plan has (for example) a February effective date, then you're most likely going to be buying a new Exchange-compliant plan early next year. But if you buy a new plan with (say) an October effective date, you've got most of 2014 before you have to switch.
Oh, and Anthem also has a consumer-friendly ObamaTax guidance tool, just click here.
Live and learn.
[Hat Tip: FoIB Beverly D]
First, I've been wondering for a while about how insurance sales will work outside the Exchanges. That is, since only Exchange-compliant plans will be acceptable coverage under The ObamaTax, why would carriers bother to have two different product lines? I had guessed that they wouldn't, but our rep told me that the plans available on the Exchanges would, in fact, differ from those sold outside of them.
Exchange-based plans will be eligible for subsidies (which does not mean that purchasers will actually receive them), and have much tighter (smaller) networks. Plans sold outside the Exchanges won't be eligible for any subsidies, but will have bigger networks, and thus more offer more choice in actual health care.
The second thing she told me had to do with so-called "grandfathered" plans. I was surprised to learn that up to 50% of Anthem's individual plans are still grandfathered in. She also told me that they're expecting a major influx of fourth quarter new business.
Hunh?
It makes sense: non-grandfathered plans will stay in effect until their first renewal after January 1st. So if your plan has (for example) a February effective date, then you're most likely going to be buying a new Exchange-compliant plan early next year. But if you buy a new plan with (say) an October effective date, you've got most of 2014 before you have to switch.
Oh, and Anthem also has a consumer-friendly ObamaTax guidance tool, just click here.
Live and learn.
[Hat Tip: FoIB Beverly D]
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