As a result of the Affordable Care Act (ACA), rates for individual/family health insurance will drop by 50% or so in New York — NOT Georgia. This news was just announced recently and it’s really no surprise to those who understand how some states currently regulate health insurance. NY and a few other states currently cover everybody without regard to health status. Consequently, their rates are much, much higher than other states like Georgia. You can read more about this here.
I mention the situation in NY because it demonstrates that whenever major changes occur — even if they are perceived as negative — there are oftentimes windows of opportunity and unplanned positive ramifications.
Most people who have a personal plan or small-group plan believe Obamacare will affect them negatively. In many cases, that belief is justified. My previous posts (and much of what you read in the news) highlight some of the negative impacts for small business owners and individuals. Regardless of how you feel about the Affordable Care Act, my job is to alert you of changes that will impact you — either positively or negatively.
One of the positive ramifications of the ACA is that carriers are becoming more lenient in their underwriting guidelines. Carriers realize that soon they will have to accept all applications, regardless of health history. So, these carriers have decided to loosen up their current medical guidelines.
A few carriers, including Blue Cross Blue Shield of Georgia and CoventryOne have announced these relaxed underwriting guidelines. I just received this note from CoventryOne:
We recently sent out an updated field underwriting guide that detailed some of the conditions that we are looking at more leniently. Here is how this has affected the underwriting outcomes for June:
Applicants Approved Standard – 77% Applicants Rated Up or Ridered – 8%
Applicants Declined – 7% Other (eligibility/withdrawn) – 8%
That is a huge change! Close to 40% of applicants were declined or ridered prior to June.
Some people who were declined or rated-up for a personal plan in the past, might be able to secure better coverage — at least until the end of 2014. This is good news for those who have been declined for certain conditions such as heart disease, diabetes, and other pre-existing health conditions. However, applications must be submitted before the end of 2013.
It is important to have your current plan evaluated and see if it makes sense to lock in lower rates before the end of this year.
Greg Sanders Peachtree Insurance Advisors 678-236-1600
