Tip #344 – Should Old Acquaintance Be Forgot?

Christmas and Hanukkah are in the rear-view mirror. Were your holidays happy and safe?

This year ‘Santa’ brought a tax bill that included eliminating the mandate (John Robert’s “tax”) for individuals to have health insurance. Was that a gift or a lump of coal? Policy wonks will debate that ad nauseam. Has there always been a penalty for not having coverage; consider, what is the leading cause of bankruptcy in America?

We saw a flurry (a word not used in a July Tip!) of new business quoting activity for January 1, for both individuals and what we call virgin groups; i.e., small businesses that previously hadn’t had coverage. Anecdotally, the decisive factor motivating shoppers to become buyers was some history of expensive care. Said another way, for healthy people, premiums were too high. For those with chronic conditions, premiums were (almost) irrelevant.

Policy wonks take note; that’s called adverse selection. What could go wrong?!

That said, the industry is going to have to adapt in 2018. Expect more change!

So good-bye 2017. From everyone at The Rauser Agency, your friendship and business “for auld lang syne” mean so very much.

Thank you.