Friday, June 03, 2016

InHealth Mutual - A Week Later [UPDATED]

So it's been a week, and I sent this out to my InHealth clients; it occurred to me that IB readers might find it interesting, as well (given that it's unlikely that this will be the last Co-Op to go kaput):

Good afternoon!

So, we have a little more info, and further clarification should be forthcoming.

First, you can keep your IH plan through the end of the year, which may be helpful if you've already met a substantial part (or all) of your deductible. The premium and benefits won't change, but the overall maximum benefit will be $500,000 (as opposed to current unlimited). I think it's a personal decision as to whether or not that's a reasonable roll of the dice.

Second, and related, it's not yet clear whether moving to another carrier will necessitate a new deductible. As I've told those of you who've asked, I'd guess "yes," but we don't know that for sure (yet).

Third, if there's any 'good' news here, it's that we don't have to make a decision about any changes for a few weeks yet, and I would advise holding off on that until we hear more from the Department of Insurance, and as we learn more about how other carriers are treating this. As an example, Medical Mutual has said that it won't pay any commissions on policies written on former IH clients. Make of that what you will.

So, that's where we are today, and I will keep everyone posted as we go forward. Please know this: no matter what happens with carriers, commissions, etc I am proud to be your agent and I will not leave you hanging.

Have a GREAT weekend!

UPDATE: In the comments, folks have wondered how claims can be capped at $500,000 since O'Care lifted the cap altogether. I was at first nonplussed, as well, and then I recalled this from the original announcement:

"Should the reserve and receipts of Coordinated Health Mutual not be sufficient to operate InHealth during this process, the law provides that the Ohio Life & Health Insurance Guaranty Association support up to $500,000 of a policy holder’s claims."

In layman's terms, this means that since the carrier has now been placed under the stewardship of the Department of Insurance, and thus subject to the terms of the state's Life and Health Guarantee Fund, individual claims are limited to $500,000.
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