Friday, November 20, 2015

Unexpected! Carrier Trick

So UHC finally decided to dip its toes into the market, only to immediately yank them back out:

"The nation’s largest health insurer fired a shot across the bow of ObamaCare on Thursday, citing flagging enrollment and high-risk customers in suggesting it may have to pull out of the exchanges in 2017"

What, 2 years of miserable ObamaTax numbers were hiding in plain sight?

So what's their solution? Well, one way to dampen enthusiasm would be to drastically cut agent comp for Exchange-based business. But that would be an incredibly slimy, cynical move.

So, naturally, UHC has drastically reduced agent comp for on-Exchange business.

Now, is this their prerogative? Of course it is. Does it make sense? Well, from their perspective, perhaps: after all, if they essentially suppress the agent-driven market, they're less likely to have to face the major loss ratio music. And what with the risk corridor money looking pretty iffy, that may be the only realistic strategy.

Oh well, easy come, easy go...
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