United HealthCare changes gears in the Texas Health Insurance Market

Golden Rule Insurance Company, which is owned by industry giant United HealthCare, changed directions slightly last week by introducing new products for consumers of the individual health insurance market in Texas. These new products can be viewed as both great news or harmfull to the Texas Health Insurance consumer, it all depends on who your health insurance agent is. Sound confusing? Well, it is. You can discuss United HealthCare with one agent and not two seconds later talk to another and get an entirely different price. Why? New product offerings are allowing the agent to decide which portfolio of products the wish to offer.

Let’s try an digest this confusion. United HealthCare, which offers it’s individual Texas health insurance policies through Golden Rule Insurance Company has been one of the most expensive plans on the Texas health insurance playing field. I quote them every day but their rates just don’t match up with the Aetna’s, and Blue Cross type of full doctor co-pay PPO policies that are being offered in Texas. Although the coverage offered by Golden Rule was solid, it was just to difficult to present to consumers when on average it was over one hundred dollars a month more.

Apparently Golden Rule recognized that they were not the large player their name comands and slightly revamped their portfolio for the new year. Here is the problem, they are offering the Texas health insurance broker the choice of selling one of two plans. One plan is similar to the current plan with solid coverage. The rates on this “standard” plan have decreased slightly. The second option that is being offered to brokers is a policy called the “Platinum Series”, this plan cost on average about ten percent more than the standard plan for similar benefits. The new Platinum Series plans also require a non-refundable thirty-five dollar application fee. Also a very strong note need to be played regarding how this Texas health insurance plan can be marketed. The Platinum Series plans offer the broker selling the Texas health insurance policy the ability to chop the number of doctor visits down to only four visits a year. When a Texas health insurance broker reduces the number of doctor visits on the Golden Rule policy the monthly premium the clients pays is now about the same price as the standard plan. In short, the Texas health insurance consumer would get lower benefits for the same monthly premium by selecting a broker that only offers the Platinum Series. it doesn’t make any sense to me either.

Now here is the big question. Why would any Texas health insurance broker agree to market this plan? It has a non-refundable thirty five dollar application fee, it has a wait of six months for any preventive care/wellness benefits, and brokers will be forced to sell the limit on doctor visits set at four a year to be competitive. The answer is actually quiet simple. It’s all about commission. The Platinum Series products offer higher commissions to the brokers presenting it.

We as agents and brokers in the Texas Health Insurance market had decisions to make when this offering took place. Do we wish to market the standard or the Platinum Series plans, we had to choose one or the other. We were not allowed to market both. The decision I made at peelerinsurance.com was to ONLY market the standard plans. I will continue to stand firm on my position of only offering the highest quality Texas health insurance products to the Texas consumer regardless of commission. It just goes against everything i believe in and everything I have worked so hard to accomplish in the Texas health insurance market to offer a product that I know is overpriced just for my own gain. It’s called morals and to me this lacks them as well as lacking fairness.

Some days I wonder if I will ever figure out what goes through the minds of insurance companies and agents by the actions they take, but greed is a nasty animal.

Now that you know the facts how can you the Texas Health Insurance consumer avoid this greed trap? After getting a quote from your chosen broker ask them if the plan is the Platinum Series product. Although I would like to think that they will tell you the truth you may wish to question further and ask if there is a limit on doctor visits or the six month wait on preventive care. Of course the application fee should also clue the consumer in as to what policy the broker is offering. If the answer is yes to any of those questions move on to someone else, or, call me. I will be more than happy to provide you quotes on the standard major medical doctor co-pay plans from Golden Rule.