Advantage Benefits

Issue: # 93

February 5, 2013

Time to Get Happy

Greetings!

It was close but we give the edge to Jimmy Cliff, verus the Jamaican version, Volkswagen "Get Happy" commercials as the best Super Bowl Commercial.

Get Happy

Over the last several years we've seen many small agencies like ours get bought out by larger brokerage houses or banks. This reminds us when your local bank was acquired by a national bank with promises of better services and rates.

Three years later the same agent who said the merger was the greatest thing ever, leaves for another company, or starts a new company and tries to get you to leave with them. Sound familiar?

We are not going anywhere. Our philosophy is that personalized service and relationships have value.

There is no more customer service, we see it every day. Try calling the 1-800 customer service numbers at any large institution and it is pot luck on whether you will get an answer. Or you will get 5 different answers from 5 different people.

We are always available - call or send an email to Bill or Vanessa today.

Bill Randell CLU,CHFC,

Vanessa Costa CLU,CHFC,

Hobby Lobby Update

The Obama administration released new HHS mandate rules that attempts to expand the number of religious groups that can opt out of the pro-abortion mandate, but that leaves religiously-run companies like Hobby Lobby out in the cold. Although the proposed revisions provide some additional protections for religiously-affiliated organizations, companies owned and operated by people with religious objections to the mandate are not included in the expanded exemption rules.

As a result Hobby Lobby will continue to be fined 1.3 million per today, now surpassing $20 million dollars.

Controlling Insurance Premiums

There is only way to control the costs of premiums! You need to control costs!! Universal

MRI Value Challenge

insurance has done nothing to control costs as evidenced by the fact we have the highest rates in the country.

We heard Ted Bruschi the other day on the radio for MRI Shields. We need more communication like this from the health plans and companies like MRI Shields to control costs, which then controls premiums.

Here is another story regarding Steward Hospitals which Andrew Dreyfus, CEO of BCBS of Ma. calls "the most significant impact on the market since the [1994] creation of Partners".

"Small Group" increases to 99 employees in 2016

The small group market in Massachusetts is currently defined as employers with no more then 50 employees. Starting in 2016, this changes to no more then 100 employees. Starting in 2016, groups with 50 to 99 employees will have rates just like employers with less then 50 where you can not negotiate rates.

This is very problematic for employers between 50 - 99. Its a material advantage for these groups right now, as there is room for negotiation. On a regular basis our clients in that range are able to get some type of rate relief, as long as their claims experience is reasonable.
Employers in the 50 to 99 range may start looking towards self-insurance as an option. As a result Blue Cross of Massachusetts, who would not even consider quoting a self insurance option unless there were at least 100 employees, is having seminars teaching brokers about a new self insured product that will go down to 50 employees.

The common belief is that bringing to 50-99 markets into the "small group" market will provide rate relief. Our concern is that groups in the 50-99 range with good claims will opt for self-insurance, while groups with bad claims will remain in the insurance pool, and put pressure on rates to increase, not decrease.