UnitedHealthcare and Humana have announced their intent to continue allowing parents to keep their children under the age of 26 on their insurance policies while also retaining preventative medical care without need for co-pay or other additional out-of-pocket charges even if the ACA is struck down by the Supreme Court or repealed by Congress. It is expected that all major carriers will also follow this path.
This announcement before the Supreme Court rules is good business from both a marketing and financial position. If the law is not overturned or repealed it changes nothing but two of the "retained" provisions will provide cost savings.
As a group, children up to the age of 26 are generally healthy and are profitable to insure. Promoting preventative care without charge encourages practices designed to discover disease early and avoid the far higher costs when illness becomes more serious and expensive to treat.
Additionally they will continue the policy of not placing lifetime caps on benefits, thus protecting insured customers from using up their coverage should they encounter a serious, long-lasting illness. Although there is no financial upside to an insurance company to continue this practice should ACA be struck down by the Supreme Court or repealed by Congress, the carriers seem to anticipate a strong, negative public reaction were they to revert to their old ways of capping health insurance benefits. It is estimated that just over 20,000 patients a year exceed their cap.
On the issue of children with preexisting conditions, Stephen J. Hemsley, president and CEO of UnitedHealth Group stated: "UnitedHealthcare recognizes the value of coverage for children up to age 19 with pre-existing conditions. One company acting alone cannot take that step, so UnitedHealthcare is committed to working with all other participants in the health care system to sustain that coverage."
For group quotes and information, contact Heather (Matias) Ainesworth at 713.977.0611 or click on her name to email.
The Texas Department of Insurance has issued an alert that a nontraditional product is being offered in the Stranger-Owned Life Insurance (STOLI) market.
Texas agents are being solicited to assist in the sale of what are frequently called "estate maximization plans," "zero premium life insurance" or "no cost to the insured" policies to consumers, most commonly elderly persons between the ages of 65 and 85.
The Department is investigating and gathering details regarding these offerings and advises you as a Texas insurance agent to exercise caution with respect to these transactions.
1. Insurance Policy has not been reviewed in the last three years.
2. Financial goals may have changed
3. Life insurance needs have increased or decreased
4. Ownership is structure has changed
5. Beneficiary designations
6. Family or business situation has changed
7. Health has changed (may qualifying for a better rating)
8. Is the policy cost-effective?
9. Loans, withdrawals, or other policy changes have affected the policy's performance
10. Payment of premiums have been inconsistent
Learn how to incorporate our Policy Assessment Kit in your Sales process in less than 10 minutes!
Contact Steve Gresso at 713.977.0611 or click on his name to email.
