Is Empire Blue Cross Of New York QuittingThe Business? Empire Blue Cross Of New York notified NY small business health insurance reps it’s reducing the amount of health insurance programs it offers to little groups starting April 1, 2011.
However Empire Blue Cross Of New York additionally told NY small business health insurance agents that is is cutting their commissions significantly. While Empire Blue Cross Of New York has stated they are not getting out of the NY small business health insurance market, they do exactly that.
Effective April 1, 2011 Empire Blue Cross Of New York is dropping the Empire EPO Stepped, Empire EPO Essential Options 1 “9, Empire Point of Service, Empire PPO Plus, Empire Total Blue PPO with Health Savings Account, Empire Prism EPO and Value EPO.
This is not the 1st time an insurance company dropped coverage for the small market. Early on in the year Emblem Health dropped its HSA program. Read the NY small business health insurance story.
Except for slashing the quantity of NY small business health insurance programs that Empire offers, Empire Blue Cross Of New York is reducing the insurance agent’s commission from 4% to a flat fee of $5 for each policy holder every month.
It appears that insurance companies aren’t making any money in the NY small business health insurance market. Since 2006, several insurance companies have exited of the NY small business health insurance market. With other firms have similar concerns, how long will it be until other insurance companies begin slashing plans and lowering commissions?
Lowering commissions appears like an excellent idea as it would save the insurance company money and that savings may be passed on to the consumer in the shape of premium reductions. However rather than attempting to stay competitive in the market, companies like Empire Blue Cross Of New York are lowering commissions and raising costs. Corporate gluttony at its best.
With Empire Blue Cross Of New York no longer desiring to be competitive, this leaves NY small businesses with only three plans; Oxford, Emblem, and Aetna. Finally you will wake up in the morning and have only 1 option in the New York market. I speculate what it’s going to be?
If you believe this is a difficulty that is restricted to the New York health insurance market, you are mistaken. Slashing programs and raising prices is coming to a health plan near you.
NY small business health insurance is a company dedicated to providing info about the way to lower NY Small Business Health Insurance Premiums