Home Page Blog Home & Auto Insurance Business Insurance Health Insurance Why Us?

Yesterday we got an email from one of our individual health insurance companies, notifying us that they've stopped writing new policies in Michigan.

They cited the health care reform MLR requirement, that forces them to pay out a certain percentage of their revenue for claims. The problem is that in individual insurance, the administrative costs are significant, because every policy has to be approved and processed one-by-one. Smaller companies also have fewer policies to spread their expenses over.

The bottom line is that we have one fewer option for our Michigan customers. Thankfully we have other carriers (for now). But I worry about the long-term implications of the law on health insurance. Fewer competitors means less choice and higher prices for consumers. And that's the opposite of what we want!

One lesson: stay informed, about what's going on in the news, and in Washington. Sooner or later, it affects you personally.
Posted 1:55 PM  View Comments

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive

View Mobile Version
Home Page About Us Contact Us