As I have mentioned in past blogs, sometimes I feel I need to address certain issues with regard to health insurance due to activity by phone and e-mail. I want to address my position with regard to both Serencsa and Feller-Freed options for Anthem Blue Cross subscribers. This is mainly directed at those Anthem Blue Cross subscribers who are not my current clients and are seeking assistance in changing to lower-cost coverage while being eligible for either Serencsa, Feller-Freed, or both..
Both Serencsa and Feller-Freed provide opportunities for plan changes within Anthem to lower cost coverage (if that is desired) WITHOUT any medical underwriting. Additionally, both Serencsa and Feller-Freed options are on the table until at least January 1, 2014 which means there will be multiple options to make the one-time plan change due to rate increases between now and 2014.
It appears that there are quite a few Anthem Blue Cross subscribers who do not understand their options under Serencsa and Feller-Freed and seem quite willing to give up those options for reasons that make little sense.
To be clear, both Serencsa and Feller-Freed provide plan change options and the ability to move to lower-cost coverage in a variety of 'open' Anthem Blue Cross health plans (plans currently sold to the public) with no medical questions asked. Since there are lower-cost health plans available to move to, it makes very little sense to look at changing insurance carriers in an attempt to lower rates and put oneself through medical underwriting and a new 2-year contestability period. I have a hard time finding a significant reason, in the current California individual & family health market, where it would make more sense to change insurance carriers than to exercise Serencsa or Feller-Freed rights with Anthem Blue Cross.
Once a person elects that change to another insurer, the protection and change options under Serencsa and Feller-Freed are lost forever. They can never be recovered.
I fully expect that at some point someone (or maybe a whole bunch of someones) is going to make that kind of change and later realize what they gave up (probably the first time the other carrier cranks up premiums with a rate increase and offers no guaranteed-issue change option), and that is when the fireworks are going to start.
I am not willing nor interested in assisting any Anthem Blue Cross subscriber who has un-exercised Serencsa or Feller-Freed protection in trying to buy health insurance from another insurance carrier just to try get a lower premium. I feel that this creates a legal exposure and at some point agents making these kinds of changes may face legal and E&O repercussions.
Sorry, but I don't do business that way. I will not take away a class-action entitlement benefit just to make a buck.
Good luck and God bless.
Dave
www.an-insurance.com
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