Insights & Opinions

about business, the insurance industry, and more

About the Author

David White is the President and CEO of Morgan White Group, a sprawling organization with offices from Bakersfield, CA, to Montego Bay, Jamaica (headquartered in Jackson, MS). With experience in nearly every facet of the insurance industry, he shares insights, opinions, and lessons learned.

Blog posts

Change in Thinking of Major Medical Carriers

The Affordable Care Act (ACA) sets the Minimum Loss Ratio (MLR) for major medical plans at 80 or 85 percent, depending on the number of employees in the group. In this, if this ratio is exceeded for groups that are on certain benefit plans in the home state of the group, any amount less than the ratio must be returned to the employers who maintained that plan, in the home state. Major medical carriers will never make the profit margin needed in order to sustain themselves long term. If they have a large loss, they eat it. If they make a nice profit, they have to give the majority of it back. Worst of all, they can’t offset the losses of one plan in one state against the profits of another plan in another state. You can see this problem – the long term making sustained profits is not viable.

Major Market Shift

I recently spoke to a manager from Blue Cross Blue Shield (BCBS) who stated his company has concluded that the Affordable Care Act (ACA) is here to...

Voluntary Benefits for Employers

This week we visited a large voluntary payroll deduction company. We asked, what are the top voluntary benefits being sold nationally in worksite m...