Monday Afternews

■ The Revenooer's have published the 2017 guidelines for deducting LTCi premiums. What, you didn't know that you could deduct some of your Long Term Care insurance premiums on your taxes?

Yup, and the "Internal Revenue Service is increasing the maximum long-term care insurance premium deduction for 2017 faster than the 2016 inflation rate."

Sweet!

At the same time, they're also increasing how much one can set (temporarily) aside in a Flexible Spending Account (for certain health and child care expenses).

■ With the World Series now officially a nail-biter, it may be interesting to note how much the life insurance industry has changed in the 100+ years since the Cubs last won one. For example:

- Group life insurance came into being in 1911

- In 1914, just over a decade since Dayton's Wright Brothers made the first powered flight (no TSA, either), Northwestern Mutual paid "its first death claim caused by an airplane accident" when some unfortunate passenger exited before the actual landing. Hundreds of feet in the air before

- One I first heard many years ago when I entered this business is that during the Depression, James C Penney (yes, that JC Penney) used his life insurance cash values to help keep his company afloat and employees paid.

Lots more at the link.

More ObamaTax Rate Decreases

Largest premium hikes for benchmark #Obamacare plans:

AZ: 116%
OK: 69%
TN: 63%
MN: 59%
AL: 58%
PA: 53%
NE: 51%
MT: 44%
IL: 43%
KS: 42%

— Fox News Research (@FoxNewsResearch) October 29, 2016

#Winning!

[Hat Tip: FoIB Holly R]

Self-Awareness: How does it work‽

I just don't get "journalists." It seems to me that, if one is going to write about something, then one should exhibit more intellectual curiosity than, say, the average broccoli floret (no offense to Cruciferous-Americans). Reason I ask is this blaring headline:

"Millions buying insurance outside exchanges amid ObamaCare woes"

Underneath this attention grabber, we find this gem:

"While premiums are set to rise by double digits on the ObamaCare exchanges, millions of Americans already have made the decision to abandon the markets altogether and shop for health care on their own"

Um, Jennifer?

This is nothing new: people have been buying "direct" (off-Exchange) all along, and trust me, their premiums haven't been decreasing 3000%, either (see here, for example).

So why buy off-Exchange?

Well, as Jenny notes, the "big downside to shopping off the exchanges is that customers would not receive insurance subsidies." And this is true. But most people don't actually qualify for subsidies (and really, what does it say about the "roaring" economy when so many folks do?). And if you're not subsidy-eligible, then the dangerously unsecure Exchange is the very last place you want to be.

Yes, insurance carriers are also vulnerable, but as private sector entities they can be held accountable. Good look trying that with a government agency.

Ms Jenny is also under the mistaken impression that there are more plan choices off-Exchange. As we're seeing, this is not necessarily true.

In all, Ms Jenny spoke with: "a resident fellow at the American Enterprise Institute ... Karen Pollitz of the Kaiser Family Foundation ... [and] Katherine Hempstead, a senior adviser at the Robert Wood Johnson Foundation"

Notice anyone missing?

Here's a hint.

Next time, how 'bout reaching out to someone who actually works in the marketplace?

We Have Ways: An Update

Back in March of Aught 10 (just after the ObamaTax was enacted), Bob pointed out that "[a]n adult who does not have health insurance by 2014 would be penalized $95 or 1 percent of income," and went on to ridicule it.

His point then was that, compared to projected premiums, this didn't even get to "paltry" levels.

And of course he was right, and of course we still have over 27 million folks uninsured, despite [ed: because of?] the joke that is the ObamaTax.

And, evidently, other folks have finally gotten around to noticing what most have us have known for years:

"In my experience, the penalty has not been large enough to motivate people to sign up for insurance,” said Christine Speidel, a tax lawyer"

Well, she'd know, right?

And then there's rocket surgeon director of tax history Joseph J. Thorndike, who brilliantly deduces that the "penalty for violating the individual mandate has not been very effective ... If it were effective, we would have higher enrollment, and the population buying policies in the insurance exchange would be healthier and younger.”

Perhaps.

But it would be interesting to know what these folks mean when they say "more effective;" after all, if they raise it too much, then folks might start to notice that it's completely unenforceable as written.

Oh.

I think I see the problem there.

[Hat Tip: Co-Blogger Bob V]

Putting Lipstick on the Pig

Almost 7 years after passing the largest tax increase in history, the Complainer-in-Chief is still begging for shills to promote his signature legislation.

Obama is asking volunteers to promote Obamacare to everyone they know. He admits it will be hard, given all the negative publicity about the takeover of the health care and health insurance system, but he wants your support anyway.

Ignore the fact that many Americans LOST coverage, can no longer see the doctor of their choice and many cannot afford the premiums.

Don't pay attention to carriers that are leaving the health insurance market in droves.

That's not important.

What IS important is protecting HIS legacy.

The folks at Yahoo are preventing the curation of their post about this, but you can read it all here.


#Obamacare

Gleaner Life Scholarships

Once again, the fine folks at Gleaner Life demonstrate how to give back in meaningful ways. Via email:

"Since 1980, The Gleaner Life Insurance Society Scholarship Foundation has awarded more than $2.6 million in scholarships on a competitive basis to Gleaner members and their families. In 2016, the foundation awarded $225,000 in scholarships."

Mutual insurance companies reward long-time clients with (non-guaranteed) dividends, which can help reduce the net cost of a policy, or add to the cash value, or even increase the death benefit. But dividends are based on how the company performs financially (investments, real estate rentals, whatever). Gleaner goes above and beyond that by putting net corporate dollars where its metaphorical mouth is:

"Eligible Gleaner members who are students can apply for a one-time $3,000 competitive scholarship. Gleaner family members are eligible to apply for one-time $1,500 awards. Both scholarships are awarded on a competitive basis."

I like that last: it rewards performance.

Interested Gleaner policyholders can click here for details.

Not a Gleaner policyholder? You know what to do.

DOL vs Small Group

Via email from our friends at Cornerstone:

"The Department of Labor, Health & Human Services and Treasury recently issued proposed regulations that would eliminate the "small plan" exemption currently in place for small employers sponsoring a group health plan with fewer than 100 participants.

If adopted, small employers would be required to furnish the same Form 5500 information to the Department of Labor as large employers." [emphasis in original]

Now why would this be a big deal?

Well, the estimated cost "will add 2.2 million work hours and $241.6 million in reporting costs for small employers (both self-insured and fully-insured)."

Think this won't affect you?

Well remember, all of these additional costs will be passed on to consumers. Not to mention, employers, particularly small employers, have limited funds, so this could very well cost someone(s) their job, or potential job.

What can you do about it?

Well, the DOL is taking comments about it through December 5th, and the folks at Cornerstone have helpfully provided us with an example:

"I am requesting that the Department of Labor reconsider the proposed Annual Reporting and Disclosure rules relating to Form 5500 and Schedule J.

The proposed rules that would eliminate the small group exemption on Form 5500 filings plus the additional data collection requirements on Schedule J will add 2.2 million work hours and would cost small employers $241.6 million.

Small employers are already challenged to stay current and compliant with excessive federal, state and local rules and regulations. The proposed changes place yet another unnecessary burden on small employers.

I urge the Department of Labor to reconsider this proposal."

Blame the Agents

After almost 7 years of having the admini-screwup blame everyone for what is "wrong" we now have another fall guy.

The economy was (and presumably still is) rotten because of Bush. Global warming caused ISIS. The Republicans at the state level are why Obamacare did not cover more people.

And in the face of rising health insurance premiums there is one more patsy.

The agents and insurance carriers are responsible for higher health insurance premiums.

HHS said earlier this month that about 2.5 million people eligible for tax credits to lower the cost of their premiums are missing out, because they are buying their insurance through insurers or brokers instead of the state and federal exchanges. - USA Today

Yes, the agents are to blame for higher premiums.

Now that most agents have left the health insurance business who will they blame next?

I guess that problem is left to the next president.

Whoever he may be.

And then there is this gem.

Even those who weren't eligible for tax credits in the past should apply again, because they may qualify now that many rates are much higher,

Agents (and possibly global warming) led to higher premiums but now you can thank the agents for making premiums lower.

You are welcome.

#ObamacareSucks

With Six You Get Genworth

Not sure what to make of this, but:

"China Oceanwide agrees to pay $2.7 billion for Genworth"

Oceanwide already owns a securities brokerage and a P&C insurer, so one supposed this makes sense in terms of "fit."

The deal still needs Delaware regulators' seal-of-approval.

I reached out to Randy G, one of my favorite LCi gurus to see what he thought of this development, and he replied that it was "kind of a surprise for sure. It’s almost like AT&T buying Time Warner for $86Billion….another surprise this morning! Don’t know much about this merger other than it provides Genworth with about $1.0 Billion dollars immediately."

Which may be badly needed; back in February, we reported that the company seemed to be in some serious financial straits.

So, wait-and-see, for now.

Another 1,000 Words on #ObamaCare

 [click graph to embiggen ]

(Full story here)

And to add insult to injury, FoIB Jeff M alerts us that:

"Obamacare Rates to Skyrocket 50-75 Percent in Arizona"

Funny way of spelling "3000% rate decrease," no?

North Star State vs ObamaCare

A few weeks ago, we reported on Minnesota Governor Mark Dayton's explicit acknowledgement that the ObamaTax wasn't working as advertised:

"Democratic Gov. Mark Dayton on Wednesday said that the increase in health insurance costs in Minnesota highlights “some serious blemishes right now and serious deficiencies” in the federal health care law known as Obamacare."

Now, we learn that there's more here than meets the eye:

"What’s not widely known is that taxpayers are also being gouged for millions of dollars a year on their property tax bills because of ongoing problems with MNsure, the state’s health insurance."

Turns out - #Surprise - that because the state's Exchange has never actually worked as planned, they've been shoveling in major bucks to keep it going:

"The Minnesota Association of Counties estimates taxpayers spend an additional $27 million annually to work around the flawed online METS technology."

And that's just this year. how's that saying go again?

Oh, yeah:

"That which can't go on, won't."

[Hat Tip: Powerline]

Un(?)Intended Consequences: Deathwatch edition

Last spring, we noted a new Golden State law essentially legalizing assisted suicide. At the time, we remarked only that it served as a convenience for those so inclined to save the airfare to Switzerland.

But of course, slippery slopes are, well, slippery, and now we have an insurance carrier who took the new law to its logical (if macabre) conclusion:

"[O]ne young mother says her insurance company denied her coverage for chemotherapy treatment after originally agreeing to provide the fiscal support for it, but indicated it would be willing to pay for assisted suicide instead."

This really shouldn't come as any great surprise: after all, it's simply the logical outcome of the ObamaTax's IPAB provision. How's that, you ask?

Well, as we've noted before, that feature is really just our version of the MVNHS©'s Liverpool Pathway. Admittedly, that's actually the heavy hand of government implementing the law as written, but is it demonstrably different in this case? After all, the insurer is simply following the guidelines set forth by the state as to whom is worthy of life-extending treatment.

O Brave New World, indeed.

[Hat Tip: Ace of Spades]

Exit, Stage Right

So after (literally!) losing sleep for several weeks, I finally came to a decision about Open Enrollment v4, and sent this to my ACA insureds:

"To my valued clients:

As we enter the 4th annual Open Enrollment season, I've had to make some difficult decisions. Due to the significant changes carriers have made to their compensation schedules (aka commissions), I don’t believe that I can continue to offer the kind of comprehensive service to which I, and you, have become accustomed.

On the other hand, I'm loathe to just leave folks, many of whom I've had the pleasure to serve for many years, just "twisting in the wind."

The good news is that one of my valued partners, Cornerstone Brokerage, has a terrific program to which I can refer most clients. They're equipped and staffed to offer the same kind of help and support that I've provided, and I've worked with them long enough (20+ years) to trust their judgment and integrity. And the best part is that I'll still be able to help with any service or claims issues that you might have.

And now, the logistics: as your renewals come in, I'll forward your contact information (email and phone number) to the folks at Cornerstone. Please let me know as soon as possible if you'd prefer that I not do that, and of course I’m happy to answer any of your questions about this new process.

Thank you all so very much for the opportunity to have been of service."

Thus far, the response has been positive, with clients expressing their disappointment but appreciating that I'm not just walking away from them. As to next year's season, well, we'll see.

Can we believe anything the Administration tells us about health care?

You'd have to be Rip van Winkle not to know medical insurance premiums rise sharply for 2017.  As they have each year ever since full implementation of Obamacare in 2014.

"President Obama calls this a “transition” because insurers aggressively priced too low to get healthy people to sign up."

Oh, rilly?

This must be why Obama's healthcare advisor Ezekiel Emanuel accused insurers back in 2013 of aggressively increasing their prices before Obamacare went fully into effect.

"Ezekiel Emanuel, brother of Rahm Emanuel and President Obama's health care advisor during the Obamacare debate, conceded last month [February, 2013] that medical insurance premiums are rising.  But, he suggests, the reason is a sinister insurance industry money grab because, don't forget, ACA will make them lower their medical insurance premiums next year."

So which is it?  Did insurers increase their prices before Obamacare as Emanuel claimed?  Or reduce them, as Obama claimed?  

You just can't believe a thing Obama or his administration says.

Not a damn thing.

Misspelling "3000% rate decrease" Part #8392

Sheesh:

 

[click pic to embiggen]

[Hat Tip: FoIB Jeff M]

MediShare: Epilogue

So, the other day I asked about folks' experiences with Health Care Sharing Ministries and, as usual, our readers came through in a big way.

Thank you!

One thing missing, though, was an agent's perspective; that is, from someone who'd actually sold such a plan. Fortunately, I received an email from one such, who's graciously agreed to let me share her story:

"I'm a financial advisor and licensed insurance agent (since ’97). I moved my family to Samaritans two years ago when that insurance we were promised we could keep was no longer available. It took me some time to get comfortable with the idea of believers sharing burdens like this. In part my skepticism was a result of my training in the industry; insure risk, insure risk, insure risk.

Also, my skepticism was partially anchored in knowing human nature. This year we had a small need, $1,800. The plan worked as explained, and receiving notes of encouragement from all those folks was encouraging. It's a privilege to pray for and encourage those to whom we send our monthly contributions, so to receive it in return warmed my soul.

We have found that generally telling doctors that we are cash pay affords better treatment, better pricing, easier appointment times and we've become much more aware of cost [ed: which tracks with what other commenters have noted] as we don't wish to burden the group any more than is absolutely necessary. It's been eye opening to see just how badly and invasive the insurance industry has injected itself between the doctor/patient relationship. Now, even if the ACA is repealed, I don't think I'll go back to regular insurance."

Thank you, this is exactly the kind of input I was seeking.

So, I think at this point that I need to "move on" from my skepticism of this model, at least insofar as this new product is concerned.

Goodbye Snoopy

Long time representative of a large financial institution was given his walking

papers. Easily recognized and loved by all, Snoopy is out of a job.

Metropolitan Life has fired Snoopy.

The largest U.S. life insurer announced Thursday that it will phase out the use of Snoopy and Peanuts characters in its marketing. It also unveiled a new tagline, “MetLife. Navigating life together,” in what the New York-based company called the most significant change to its brand in three decades. - Bloomberg

What is the world coming to?

Next thing you know, AFLAC will say goodbye to Yogi and the duck.

You've misspelled "3000% rate decrease"

Again.

From FoIB Jeff M:

"Arizona’s Obamacare marketplace rates are set to skyrocket as the state’s two remaining insurers in the marketplace raise their rates 50-75 percent."

#Winning!

Health Wonk Review: Mom's always right edition

Peggy Salvatore hosts this week's terrific compendium of health care wonkery, from political prognostications to Big Tobacco.

Not to be missed.

Blast from the Past: Penn Treaty in the News

Co-Blogger Bob just sent me this:

"Penn Treaty and its affiliates are so broke that their unpaid obligations for Pennsylvania are expected to top $500 million, "close to or at the 2 percent cap" for annual surcharges on Pennsylvania health-insurance policy premiums"

So says Sean McKenna, spokesctitter for the national life and health guaranty group [ed: basically FDIC for insurance]. And what does this mean?

Well:

"[Pennsylvania] braces for largest health insurance failure in U.S. history"

Sounds ominous, no?

We first wrote of PT's woes almost exactly 7 years ago, when this whole mess began to unravel for them. This news, though, is much bigger: some $4 billion in the hole, perhaps things would have "passed quietly to reinsurance - a sort of insurer underworld of risk-swapping - if Penn Treaty had been liquidated when it was first taken over."

Oh well, hindsight's always 20/20, right?