I haven’t written in a while, as the Affordable Care Act open enrollment period requires a lot of time an hours to servicing clients. Yesterday something really upset me so here we go!!
Yesterday, I lost a good client, not because of my service or my product. Because she was lied to by another broker!! Yes, I know she was lied to because she described a product that does not exist in an Obamacare world.
Now, I personally believe you should be able to purchase what you want. I don’t care if it is an ACA plan, a short term plan or a defined benefit plan, as long as you understand what it is. What this broker did was sold my client an indemnity plan ( which I am ok with), but told her it only had a $3000 deductible and then 100% coverage. It did have a short term plan tied to it. That is ok, but in the state of Illinois the short term plan is only good for 6 months. So after six months, this client could be at risk for a catastrophic loss. Now my client claims this is not what she purchased. I know as a healthcare policy expert and a student of insurance that the policy she described is not currently legal. She told me “Trump got rid of all that and now insurance companies can sell what they want”. I am guessing this is the lingo the broker used. He was a “captive agent” meaning he only sells one product. This agency tried to recruit me a few years back, but I felt they were misleading the clients. Saying their plan was not ACA compliant, but the government was not going to collect the tax penalty. This particular captive agency, has a reputation of hiring people with no insurance experience, so my guess is this broker who sold the plan has probably been in the business less than six months. I would hope that anyone who has been in the business for any period of time would not have done this. Here is the best part. I asked the client if she could email me the brochure or if I could see it. She said he did not leave one. That should be a concern to begin with. If you are not left a brochure or an outline of coverage, there is probably a reason why. Because the broker, does not want you to see the truth!
Trump did get rid of the shared responsibility tax, so you can now purchase a short term or an indemnity plan without paying a penalty for a non-qualified health plan without penalty. He did not get rid of the ACA, as that requires 60 votes in the Senate. The tax penalty disappeared not through ACA legislation, but in the Jobs and Tax bill of 2018.
Harvey McKay once wrote a book entitled “Beware of the Naked Man Who Offers You the Shirt Off His Back.” My former client got a shirt from a naked man.