Many times we speak with seasoned buyers of group health insurance in greater Cincinnati and northern Kentucky who ask us, “What is the point of requesting preliminary rates when those rates can change after we apply for coverage?” This question stems from the fact that preliminary rates do not take into account the affect of a group’s medical history. Therefore, if you decide to actually submit applications for coverage based on preliminary rates, the rates will be subject to change due to medical history upon application. If the rates are subject to change, what’s the point in preliminary rates? Why bother to look at preliminary rates at all and, instead, just jump straight into a prescreen?

Well, there is a simple answer, and that is – it may not be worth your time to jump straight into a prescreen. Preliminary rates are a quick and easy way to get a picture of how competitive (or, not) your current rates are. We run them all the time. They are fast and easy to get, and they provide a quick test to determine if – even in the best case scenario – your company has an opportunity to save any money by loking at other carriers. If we see a significant difference between your current rates and preliminary rates, it may signal that a prescreen is worth a try.

All that said, if you look around our website or talk to us personally, you’ll see and hear us recommend that – after we have determined a prescreen is worth a try – groups should consider prescreening online. If there is a sizeable difference between your current rates and the preliminary rates of most other carriers, you won’t really know which of those potential carriers is the most competitive (if at all) until you prescreen. Prescreening online allows you to prescreen with multiple carriers at once, but it is espescially advantageous because it only requires your employees to answer one set of medical questions. The online system “merges” employee medical information into the applications of several carriers. Using this approach, you gain the opportunity to compare the prescreened rates of various carriers against one another simultaneously.

As sometimes happens, a carrier with the lowest preliminary rates may not have the lowest prescreened rates. This happens because each carrier reacts a little differently during medical underwriting. Due to this, you’ll want to see as many prescreened rates as you can. But, don’t put the cart before the horse! The whole process should start with preliminary rates. Find out first if any carriers are even close to providing you with an opportunity for savings before going through all the effort of submitting a prescreen.

To request preliminary group health insurance rates for your group, click on the, “Quote Request Form,” link above. Complete and return the form via mail (McCarthy Stevenot Agency, Inc., 10921 Reeed Hartman Hwy., Suite 310, Cincinnati,OH, 45242), email (ted@mcccarthystevenot.com), or fax (513-891-3088).

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Filed under: Health Insurance Buyer's Guides

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