To Our Valued Sales Partners:
Health care reform will present both challenges
and opportunities for our industry, for The IHC
Group and for our valued partners. We are in
a good position to take advantage of the opportunities, and to respond favorably to
the challenges. Here’s why:
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We have time to react.
Although there are a few provisions that will kick
in fairly quickly, such as no pre-ex requirements
for children and elimination of lifetime and “unreasonable” annual maximums, the most significant changes do not begin until 2014.
The vast majority of our medical plans in the
small group and individual market already have extremely high annual and lifetime maximums.
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The devil is in the details.
For example, the legislative language regarding minimum loss ratios, which is set to start in
2011, is far from clear. The implications of a minimum loss ratio standard—by company size, by product, by duration,by class of business, by claim definition—are still to be determined. The
role of limited medical plans in not clearly defined.
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Agents will be part of the process.
Although compensation methods may look
different in 2014 and beyond, nothing in the
new law precludes the role of agents.
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IHC Health Solutions has a strong
online presence.
We had more than 1 million online sessions
in 2009, and that was prior to the launch of
MNL online. By maximizing our online presence, we have set ourselves apart from other carriers.
By making it easier for our producers to serve
their customers, we improve our ability to adapt positively to regulatory change.
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We are diversified—and becoming even
more diversified this year.
The IHC Group’s employer stop-loss segment
could likely be enhanced as self-funding of
health benefits will become more attractive to certain (particularly smaller) employer groups.
We expect continued growth in our dental and vision business lines. This year we plan to
launch Medicare Supplement plans. We have
been growing our dental and group life blocks of business. We have plans to be a key player in
the critical illness and accident medical arenas. And we are committed to continued success of
our small group and individual medical business lines, including short-term medical.
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Some key things to remember.
•	For the next six to 12 months very little changes, so we need to keep doing what we do best. In fact, we may have more opportunity for sales as consumers lock in plans that will be grandfathered under the new rules.
•	Almost none of the rules are fully established. There are two national elections between now and 2014.
•	There are provisions of the new law that favor smaller companies like us in order to promote competition.
•	We will be regularly communicating with you as details emerge.

We have a bright future at IHC Health Solutions regardless of how the changes play out.
Health insurance reform has been happening incrementally for many years, and we have
been adapting to it. Change is inevitable, but success is optional. Let’s work together to
make the most of this opportunity.

Sincerely, . Jeff Smedsrud CEO, IHC Health Solutions Co-President, Fully Insured Division

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