15th
September
2005
The Dallas News is reporting that UICI chairman Ronald Jensen was killed in an auto accident last week.
(this post was written way on on Thursday, September 15th, 2005)
Mr. Jensen made a fortune (and his company still does) steering tens of thousands of innocent business owners into believing they are getting high quality insurance with Mega life and health.
The sales force for the National Association for the Self Employed has made a lot of money, selling what many consider to be a poor substitute for traditional health insurance.
Although I sold the product in Oregon during late 2002 and early 2003, these aren’t just my opinions, either. Here is a forum thread with many of those peoples opinions. and here’s a long list of the crap that Mega has pulled
Since it’s technically legal, the NASE / Mega juggernaut cannot be stopped. The salespeople making thousands of dollars each week are, in my opinion, easily blinded to the illegitimacy of Mega’s policy, because the Mega policy is not even reviewed in their own agent training. I know this because I asked on three separate occasions, “When will we be reviewing our own policy?” and in my months there, we never did, not even once.
Only the competitor policies were discussed and torn apart. Since every policy has limitations, the competition is easily torn down, without ever even examining their own policy.
However, some states are catching on. Calling it “health insurance” at all was apparently too big of a stretch for Washington State, who in 2004 forbid sales of their products altogether. At this point in 2005, I guess they’re back again in Washington.
Always be sure to ask anyone that sells you any health insurance this question… “What’s the maximum out of pocket for a calendar year, including my deductibles?”
( Comments are closed on this thread – but consumers and NASE agents are still voicing their opinions here).
Other stuff I've written:
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JC says:
I knew and worked with Ron Jensen and am sorry to learn he was killed in an auto accident. Ron was a forceful businessman who was also generous and helped hundreds of small business get off the ground and flying. The greatest shame of all these many discussions is we live in a country, the only country in the industrialized world that does not provide all its citizens access to healthcare. Rresponsible and desperate citizens have been forced to buy the most affordable coverage they can find and it was and will never provide resonable coverage….. God rest Ron Jensen and
Amy says:
While looking for health insurance for my family (as my husband is self employed and I will no longer be working as of June), we did meet with an agent of one of MEGA life/NASE subsidiaires today. Having spoken with a different agent from another insurance company over the phone, he emailed me articles from the Boston Globe regarding a lawsuit against MEGA in the state of Massachusetts. While I am not completely sold on the idea that MEGA life and their subsidiaries is trying to scam people, all this information, including this blog will lead me to “google” the following for insurance company that my family considers: lawsuits against (insert insurance company name). Buyer beware, right!
Jim Langley says:
I got a very aggressive rep calling me from Mega to sell me a policy through NASE. I’m in CA. Why should or shouldn’t I sign on the dotted line? I see an A+ rating with Best. What rating does it get with Standard and Poors and the other guys?
Thanks,
Jim L.
Scott says:
Since I havent sold insurance in four years, and know nothing about current Mega Policies, especially those sold in California, it would be totally irresponsible of me to give you any input.
Any readers out there? Current California Mega customers with input?
If it were me, I would talk to an agent that’s not “captive” like all Mega agents are. Talk to one that offers Blue Cross, and others at a general agency, and ask THEM what the down side of Mega is, (if any).
Perhaps, as some of the comments have suggested, Mega has now gotten back to the spirit of what Ron Jensen was originally trying to do… Bringing affordable health care to the self employed. All I know is they had completely lost their way at the time I worked there in 2002.
tony says:
I am in IL and am considering MEGA. I have looked over the policy, had my wife do the same, called MEGA and asked about OOP max, and some coverage stuff. They seem to be on the level. We also called the rep. trying to sell us, and asked the same questions, and what do you know, got the same answers.
They aren’t much less expensive than let’s say BCBS, but they offer the “perks” of being affiliated with the NASE. Has anybody recently, heard bad stuff about them? Many of the negative stuff was posted in 2005. Maybe things have changed since then…hopefully…
Scott says:
I would recommend you check with your local Insurance division for their complaint ratio…
http://www.idfpr.com/DOI/Default2.asp
Ted says:
I am a former MEGA agent in MA and love reading these blogs from former and current agents, past and present customers and those trying to make a decision on their healthcare. Bottom line, I regret ever going to work for this cheesy and misguided company, and I truly don’t know what I was thinking.
I was talked into it by a good salesman as are many customers of this company. The longer I was there and more I learned about the whole industry and our policies, I made the decision to leave. And yes, I did have to pay MEGA based upon the amount of business that I had been paid on advance vs. the business that had fallen off the books quickly.
Am I angry and do I feel ripped off? No, I can only blame myself for ever taking the position. EVERY COMMENT I EVER READ FROM A FORMER AGENT IS TRUE. I can’t stress that enough. Most comments from current agents are still blinded by the MEGA light.
This company is as close to a cult as exists, and that is the best way to describe it. The health plans offered by this company are great if you never have to use them, and in a way, that is how I was taught to sell them. MA is a guaranteed issue state, so you have the right to switch to another plan regardless of pre-existing conditions and be accepted. So the ploy was….buy MEGA, save lots of money, and if anything major happens, switch to BCBS or another HMO plan that actually covers things.
The most glaring inadequacy of the MEGA plan has to do with paying room and board charges in a hospital stay. I think the limit was something like $400 a day. Guess what folks, go to a decent hospital like MA General in Boston, and your stay is about $1200 a night. Guess who is paying the difference?
The whole plan is like that when you really get into the nitty gritty of it. Even the deductible that is supposedly 100% coverage…….it applies to “covered expenses” guess who determines what is considered a covered expense. The problem is, most people don’t ask the questions and they trust the person that is sitting there “helping” them. The other problem is that a decent HMO for a family is about $1200 a month, so when MEGA is only going to be about $500, it is easy to make the wrong decision.
In conclusion, if you can at all avoid MEGA, and plans like it, I recommend it. It is imperitave that you read the fine print and ask the right questions. Most complaints and lawsuits are a result of “bad” agents, but believe me, it has a lot to do with BAD insurance as well. How many people are suing Blue Cross because of a bad agent? Not many……
Erin says:
I would add to the above recommendation that you take a look at the investigations listed on the California Insurance Commissioner website.
Also ask to read the policy before purchasing coverage. Then read it very carefully.
I am currently reviewing a PPO policy issued by Mega that excludes lab work and diagnostic testing unless performed during a hospitalization.
The exclusions are not clearly listed in the policy. The policy does not say “excluding CAT scan, x-rays, lab work…”
Instead it has language that is buried in the Exclusion and Limitation section that says “charges for which benefits are not specifically provided for in this Certificate” are not covered.
This language does not resonate with most people until they recieve an explanation of benefits denying coverage that falls under this catch all provision. The PPO that I am reviewing appears to be a very well written attempt to avoid covering the insured during any serious illness.
Another place to look before purchasing the coverage is UICI’s (now HealthMarket Inc.)annual report’s. These reports can be found on the UICI website and list numerous law suits where UICI and NASE were defendants.
Finally, keep in mind that insurance is not intended to cover you when you are healthy. It is protection in case you become unhealthy. If a policy is only good if you are healthy then it is not worth the paper it is written on.
Scott says:
Wow – sounds sneaky
Peter says:
Stay away from MEGA–they are liars. I regret the day I fell for their scam.
Elena says:
I haven’t seen any reference to AFS in conjunction with Mega Life on this thread. I am scheduled to go in tomorrow with my brand new insurance agent license and start work. I am by no means a novice in understanding what is like out there since my brother was a successful agent for many years.
I’ve looked through all the documents on the stand alone association (Americans for Financial Security). The savings are brilliant in regards to legal help, road assistance, and hospital confinement alone because I pay more for AAA, Prepaid Legal and AFLAC in a year. Plus the membership offers many extra benefits that I find beneficial to a small business owner which I have been for years.
But the insurance portion with Mega life does concern me. In this arena, I am a novice and everything said here worries me. I am very moral and cannot withhold important information from anyone. It is unethical and if this is the premise for Mega Life, I am not sure if it’s the right path for me.
Where IS an ethical company? Are there any out there?
Ted says:
Some of the AFS and NASE benefits are ok, I wouldn’t call them brilliant. You really aren’t selling those so much as you are the insurance, so I would be very sure about that. People don’t really care so much about the association benefits, and you certainly aren’t making your money on those. I don’t believe the premise of MEGA is really unethical, I think they really believe they are an alternative to traditional HMO plans, it’s just a very poor alternative. There are people out there for whom these catastrophic plans are good, just not a lot of people.
Robert says:
I was recently interviewed and asked to be an agent with UGA. After reading this I am not sure I still want to work with them!! If any agents (past or present) could give me some advice, please let me know. My e-mail is robdawg48@hotmail.com
lynn says:
Wow…this is enlightening and confusing. I just met with an agent yesterday and asked him to hold my appl. so I could confer with my husband. I got the “better send it in because if you end up with a pre existing condition you will only be insurable by bcbs.” I asked him to hold it a week……Now after reading this, I am going to go through the info he left with a fine tooth comb. I was told you could add and remove riders as you wish. Now I am being told you have to take the prescription benefit and then cancel it if you don’t want it. Sounds like a way to boost sales numbers. He also told me you could cancel the NASE membership after a couple of months. I told him I wasn’t happy with the hard sell and he of course apologized and backed down. I agree that there are problems with the whole industry. It’s horrible that these insurance companies blame huge increases on the cost of medical care when in fact it is to increase their profits to build palacial offices and pay their executives multi million dollar bonuses. The Mega agent claims that they have never had a double digit % increase in the 15 years he has been there and that they set a “profit level” and if the exceed that they keep rates at current levels and provide more riders. But he did mention the great trips the top sales people go on yearly….this coming one/…. the top 125 people get an all expense paid trip to Hawaii….Everything included for sales person and wife……great incentive to sell at all costs. I think I will continue to look.
Ted says:
RobDawg—– as a former MEGA agent that sold for about 9 months, I would definitely find another company to work for. It all sounds warm and fuzzy in the beginning, but as you are there for a while you will realize the mistake you made.
Lynn—-your story sounds very familiar—–run from MEGA—do not buy their policy
Jason says:
haha you guys are stupid if you open the policy book and you know how to read english the year out of pocket is printed in black and white haha were not selling cars here people You can’t just lie about health insurance
Scott says:
Hi, Jason, you’re right. It’s all right there in the policy in black and white. If people would just read it, then everything is defined. You’ll go far selling insurance, I have no doubt.
Legally, it’s the buyers responsibility to know exactly what they’re buying, and policies within the same company vary year to year and state to state.
Dan says:
Not that I believe this will make any difference to someone who has found a nitche bashing a company whose primary fault is firing agents who bend the rules, paying out more than they legally have to in some instances (katrina, sf earthquake), and in those instances waving their customer’s premiums without ever requesting repayment because they have a corporate motto that is Helping Other People Everyday. They point is not to try to defend a company that has gone above and beyond my personal expectations in my coverage, but to ask you to either
1. Do your research on every other individual health insurance carrier out there before you are willing to allow your ignorance to be published, or
2. Stop your fear creating blog from terrifying those who are actually in a place to take advantage of the incredible benefits of these memberships as well as the health insurance.
I know anyone who would capitalize on a great man’s passing just so they could create their own people-will-listen-to-me-if-I-create-enough-fear kingdom will dismiss any point of reality that may challenge the foundation of your critics corner, but the reason I entered this is to hopefully offer a light of truth in this cesspool of fear based lies.
(FYI, Ron Jensen made his millions before purchasing MEGA and his purpose was to create a company that helped people with integrity)
I ask you, give up your kingdom for the good of those who want to do what’s right & might listen to you as a source of legitimacy.
Scott says:
Nice Dan – you sound quite morally superior.
I wouldn’t exactly call this a niche I built… this was a blog post in 2005. Yet two years later, disgruntled customers and agents still come here and post comments why is that?
I can tell you for a fact that I was a trained agent, and I was trained using lies, that I have no doubt my trainer believed, because that’s how she was trained too.
The primary lie which I told to hundreds of prospective buyers until I found out it wasn’t true was that one of our largest competitors “Fortis” did not cover self-employed people on the job.
insurance is a slimy business, and I’m glad to be out of it for over 4 years. if Mega was forced to clean up their act by the regulatory commissions in each state, then that’s good for the buyer.
You did say one thing that made sense… “Do your research on every other individual health insurance carrier out there”
Now I’m closing comments on this post, because it’s been beat to death.
Healthy Luminous Life » Blog Archive » Mega life health insurance - Health insurance says:
[...] I have a Certificate of Assumption from The Mega Life and Health Insurance Company dated Sept 30, 1994. This is attached to a paid up Life Insurance policy from a long time ago that should have a See [...]
Kumeshan says:
Kumeshan…
I always enjoy coming to this site because you offer great tips and advice for people like me who can always use a few good pointers. I will be getting my friends to pop around fairly soon….