Ron Rowe, department vice president of individual and small group sales for Blue Cross and Blue Shield of Kansas City, has a calendar on his desk marked with the number 175.
That’s the number of days left until the Affordable Care Act’s open enrollment period begins on Oct. 1.
“I can’t wait for it to get here,” Rowe said. “All of the planning and leading up to it. … I don’t know that Oct. 1 will be hectic, but October through the end of December will be hectic.”
Although Rowe is excited, he said he’s had to spend some time reassuring some area health insurance brokers about the changes in store.
Last week, he helped host a forum for brokers to talk about their concerns and ask questions. BCBSKC has held these kinds of forums before and drawn a couple hundred attendees. Last week’s forum attracted nearly 1,000 people.
“They’re not as nervous today as they were two years ago,” Rowe said of the brokers. “When the law was first passed, they were nervous because of the medical loss ratio requirements for carriers, which basically said we’ve only got 20 percent of the premium that we can use for administrative expenses and commissions. A lot of people thought this would put us out of business, but they’ve come to see they’re still going to be in business, and they’ll still be getting paid.”
Aside from keeping their jobs, Rowe said the No. 1 concern for brokers is how much premiums will cost clients. And for now, there’s no clear answer. Insurance carriers will have to release their proposed plans and premiums by April 30.
Rowe said BCBSKC will release 12 products on the individual market — down from 32 today. In the small group market, he said he anticipates offering 25 products.
Brokers are watching closely what large carriers like BCBSKC are doing because they’ll have to convey those changes to their clients.
“I’m glad I’m not in their shoes, to be honest with you,” Rowe said. “We have a product portfolio at Blue Cross in the individual market we have 32 products we offer. The brokers have to understand the nuances of those 32 products. Then they have to know that for Coventry, Humana, Aetna or any other carriers they represent.”
Overall, Rowe said he thought the group of brokers was optimistic.
“The response was very good,” he said. “I think most people left there saying: ‘We understand now, we see our role, and it’s not as bad as we thought. We’re going to be in business.’”
Date: Apr 8, 2013