Insurance company announces it will exit the fully-insured, self-funded and level funded market to concentrate on individual policies through Individual Coverage Health Reimbursement Arrangements (ICHRA).
“We are committed to helping employers find affordable health insurance options for their employees. We believe that one answer can be found in our individual plans and are excited to provide a solution for employers in CT through an Individual Coverage Health Reimbursement Arrangement (ICHRA).”
ConnectiCare to exit fully insured large group market in CT
By David Krechevsky – SOURCE: Hartford Business
Just over a month after announcing plans to end its self-funded and level-funded insurance business in Connecticut beginning in July, Farmington-based insurer ConnectiCare has told brokers it will also exit the fully insured large group market in the state.
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This is clearly evidence of a seismic move away from traditional group health insurance towards individual policies funded through ICHRAs. Hedge funds are betting on what they believe is a sure thing by investing millions in ICHRA administration startups. How many hedge funds do you know that have gone broke?
Traditional health insurance brokers are resisting because they know their value proposition will be diminished and their income threatened. They fear they will no longer be needed for things that were needed before and would have to settle for second class Bird Dog status. And they know Bird Dog status doesn’t require an insurance license. “Hey neighbor, want to earn a little extra money?”
Buying health insurance through an ICHRA is like buying something on Amazon. Go to a website, view the “inventory”, click on a button and you’re covered on a plan that best fits your needs. During the process an attractive, tattoo less, artificial intelligence humanoid walks you through your choices and answers your questions.
Savvy former legacy health insurance brokers along with their next door neighbors and their next door neighbors would be wise to put an ICHRA link on their website and get paid for every click and paid more for every resulting sale. Beats a poke in the eye. “You’re invited to a Tupperware Party Mildred!”
ICHRA (I Can’t Handle Risk Anymore) frees Mad-As-Hell-and-I-Can’t-Take-it-Anymore plan sponsors from a system that works against them.
