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Mid Atlantic Medical Svcs (MME) Message Board

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  • john_harkes_6 john_harkes_6 Sep 3, 2003 4:26 PM Flag

    Treatment of Sales People

    Actually - no, law firms are horrible for health insurers.

    A) The claims experience is one of the worst injuries. Lawyers rank right up there with steelworkers.

    B) Lawyers are also likely to choose to "self-insure" by choosing to forego health insurance if they are young and healthy. This means those that choose to buy it will be those that are sicker and higher utilizers.

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    • You don't know what you are talking about. Large law firms are experience rated meaning their premiums are set to their experience. They have the money to pay. If you keep them happy they stay with you and you make money.

      I have had them as clients at 2 different plans
      and they are good business. Further, when you get one and do well, another firm hears about it and you get a shot at their business.

      Of the top 25 firms, the leading player is probably Wellpoint. They bought Mass Mutual which used NCPPO (MM was the principal owner).
      NCPPO had all the big firms including the consortium.

      Total premium for law firms with over 250 employees in DC would be well over 100 million.

      • 1 Reply to matollionequay
      • And NCPPO has lost money for WellPoint since the day they bought it. WellPoint has trimmed that business by almost 50% since they purchased it to get rid of large money losing accounts. Read interviews with Schaeffer - he admits that WellPoint made some mistakes with that acquisition and he learned a lot from it.

        Your comment was spoken like a true salesman. Who cares how much in premium you collect from an account - that is short sighted and what got investors in trouble with Tech stocks. Revenue is meaningless - U/W gain is the only thing that matters. And the truth of the matter is that lawyers consume a great deal of care and are a higher risk of catastrophic claims (heart failure, etc.) Experience rating is all well and good but when the healthy members of the pool choose to "self-insure" you are left with the bad end of the experience without an offsetting healthy pool gains turn quickly to large losses.