24th
August
2005
(*note added 2007 – this blog entry was posted in Aug ’05, and has taken on a life of it’s own. It’s amazing how many people are wary of Mega) -
Today, someone emailed me and asked me this -
Obviously I noticed your posting on megainsurance.
Would you please tell me your experiences? I am in a financial hole, and am scheduled to attend their training real soon. I really appreciate your help!!
Thanks again,
Jeff
Here’s my answer -
(*at that time – Based on the fact that I had sold Mega policies in Oregon)
Well Jeff, here’s the scoop. Playing the odds for most people, the insurance is not really that bad. BUT, just knowing theres the tiniest possibility that someone you sold to, (or worse yet, someone you know & love), actually does develop diabetes, or needs an organ transplant, or develops any cancer, or anything really bad, and you won’t sleep at night unless you stick your head in the sand.
On Mega Life and Health, there’s no “maximum out of pocket”. That’s the key ingredient missing. 80/20 on a $75k hospital stay, after your $5,000 deductible can set you back 20 grand or more! And if it’s a quarter million or more incident? forget it, you’re bankrupt.
Take a Mega health policy to your current (or any) competent agent and ask them what’s wrong with it. If only I had done that first! You know, I actually asked for one over and over, and never did get one to look at until my own came in the mail. By that point, I was selling it and making money, so who cared?
To have saved some families a few bucks a month, but knowing it could cost them $55,000 on a $90,000 hospital bill is horrible. The only consolation was that once people found out how it worked, they left. I’m so glad none of them kept it very long…
None of my customers ever called me like that, but I saw two good sales people get devastated by calls like that and leave in two months, right after I was the “Rookie of the year” in my district. As soon as I learned what we were really selling, I just quit producing. Then I was dead weight for a few weeks and finally left.
Those that are successful actually believe the product is as good as anything else out there, and that all insurance has limits. Well, that’s true, and playing the odds, this insurance is not that bad. 90% of all hospital bills are still under $50k . That’s not a chance I was willing to take.
The thing is, I think they just don’t know what they’re really selling and they don’t know the competition. They only know what they’re told, because none of them was in the insurance business before.
It wasn’t until I went to a general agency for 4 months that I saw how REALLY full of other holes Mega was. Plus, I had been made to look stupid. ..That was the final straw.
I had to stand there while a customer called their insurance company and proved me wrong, calling me a liar. I was told many times that “Fortis doesn’t cover you for injury on the job if you’re self employed” and that was a big selling point for business owners. I always mentioned that sentence in my sales pitch because people were shocked.
Today, I’m with Fortis for coverage that’s tons better, 6 million limit, and has a $2500 per incident 100% accident rider, and a maximum out of pocket of $8000 in any calendar year! That’s even for a heart transplant! It’s amazing what you learn selling insurance…
At Mega, when a client got hammered, the bosses would just say “Well Scott, all insurance has limits. The facts and coverage are laid out for the customer to read, and they could have canceled before she had a stroke and lost their home…”
Well that’s true, and that’s why it’s a legal business, but that doesn’t make it right.
Here’s a long list of the crap that Mega has pulled and why so many people hate them. Decide for yourself.
I really hated the insurance business anyway.
* Update 2007 -
To be clear, I have not been a Mega agent since 2003. I’m an internet marketer, and I I do make a couple of bucks if you get a quote for your zip code at Ehealthinsurance
Nick says:
I just met with a person who attempted to sell me a policy via NASE/Mega. What should I look out for? It sounds like a good deal, but your post made me a little sceptical. Any information would be greatly appreciated.
Scott says:
Well Nick, ask them this question…
On a $60,000 hospital stay, (a week inpatient with a minor surgery) what’s your maximum out of pocket?
And, on a $250,000 catastrophic hospital stay, like a transplant etc, what’s your maximum out of pocket?
Then make your choice from there…
Julie says:
I asked our insurance salesman about this because we are planning on signing up for Mega Health Insurance. He said we would have to pay the $5000, but that would be all of our expenses. He did say that some plans still have the 20% that you continue to pay. I believe our plan is the Preferred Member Plan. Have you heard of this?
Scott says:
Well that was my only gripe about Mega. They had NO maximum out of pocket.
the plane was great on the surface…You pay for all the little stuff, and then if something big kicks in, you pay your deductible, plus 20%. A 50k surgery leaves you out 10 grand plus your deductible.
I don’t know what state you’re in, but a plan that leaves you out of pocket only $5000 for a heart transplant is right there, and sounds livable. (also hard to believe it’s Mega)
When I was with Mega in Oregon they had nothing even remotely like this. Just a 1000, 3000 or $5000 deductible, THEN 20% of the bill up to the policy maximum coverage, 1 million dollars.
I’d read carefully concerning your “maximum out of pocket per person in a calandar year”. If you don’t see that, I’d run like the wind!
Julie says:
Thanks so much for your advice. We were so relieved after meeting with our insurance salesman because right now we have Priority Health and it’s getting too expensive for us. Of course, after reading your postings I’m very unsure of what to do. We haven’t been officially accepted into Mega yet, but if we are we will look over the paperwork closely. Thanks again.
Daniel Luke says:
I’m an insurance agent in Portland, Oregon, and I talk to people all the time who have Mega. Those who haven’t had a claim sometimes don’t know how bad it is, while those who have do. If you want to know your insurance options in oregon, give me a call.
1-800-259-0455-ext 129
Kathy says:
What about Assurant. I am looking for insurance & had a mega salesperson pressure me to sign up now. It sounded good, but I wanted to investigate first. Just found your web site & glad I did. I will call the agent & ask about max out of pocket. In the mean time I saw a commercial for Assurant. Went to their web site, but would like your opinion. Thanks
Scott says:
Hi Kathy –
Assurant is a new name for one of the oldest (if not THE oldest) health insurance copmpanies around…Fortis. In Oregon, my own families health insurance is through Fortis, and there simply is no better or less expensive option (again, i’m speaking about Oregon).
That said, it is a bit harder ot qualify for Fortis, but everything from their generous plan limits to the timeliness of payment has been exactly as advertised. I’d rather fight than switch!
Daniel Luke says:
Kathy,
Just so you know, Fortis was Assurant’s old name. It is the insurance organization that I most highly recommend because, simply put, their plans are very strong, and usually more affordable than other carriers in Oregon. One reason for this is that in Oregon Assurant only underwrites non-smokers. While this limits the pool of potential insureds, those who are able to qualify are usually in better health meaning that they don’t have to charge as much.
Oregon is what’s known as an accept of decline state, and by law an insurance company is not allowed to “rate up” specific conditions like smoking. The consequences of this law is that lower-risk non-smokers essentially wind up subsidizing the premiums of smokers since both pay the same rate. From an insurance companies standpoint, the only way out of this is to not cover smokers which is exactly what Assurant has decided to do.
If you or any one else wants to know more about how to lower your premiums and also get better coverage, drop me a line: danielrluke@comcast.net
Scott says:
Daniel is correct. I really like Assurant (formerly Fortis)
By the way, I still do have a small dog in the insurance fight here at http://www.oregonhealthinsurance.net where you can get free health insurance quotes for any state in the US and look into Ameriplan.
If you’re in Oregon, give Daniel a call! Daniel, you should take a look at my Ameriplan pages there, please. Your customers might really benefit, and so might you! And thanks for posting here…
Anthony says:
My wife signed up for Mega last week. The salesman said she could have her $409, first month payment and the $125 “administration” fee back (refunded)if she cancelled within 10 days of acceptance by Mega, is that true in your experience? The more I learn about NASE/Mega the more leary I am. thanks for the help.
Scott says:
It’s true in Oregon, but I can’t speak for other states. Actually, I think it’s 5 days if I remember right (It’s been a long time). You can still cancel though by not paying and look for other insurance right away.
I’d take the money back if you can and run like the wind. Always ask this question before signing up for healt hinsurance…”What’s my maximum out of pocket in a calendar year?” You might find that bargain insurance is anything but a bargain.
Anonymous says:
HRA 105 youright the out of pocket expenses off this is greatinsurance if you know how to use it.
Michael says:
I currently sell MEGA in Oregon and have not one negative event to relate. Most of the points made on this ‘blog’ are nonsense. Also, for an insurance agent to make false or misleading statements regarding another insurance company is a crime, I prefer not to do business with criminal insurance agents. Virtually every statement listed is wrong. I will give a full product presentation to anyone, anywhere in the State of Oregon and disprove every lie on this site. I write in excess of $500,000 in individual insurance applications per year in Oregon, and have done so for several years. Any agent making these ridiculous statements or any non-agent ‘guessing’ is welcome to call me for an educational journey through the maze of lies and misstatements contained in these postings.
To all agents whose lies are posted, please call me any time, or, if you prefer, remain in ignorance and stupidity if that better serves your personal needs, Mr. or Ms. lying insurance agent. Call Michael 503.207.5551, come on, and dial the number, I dare you.
Scott says:
Well, Michael called me, and he sounds like a sincere and honest guy. However, he truly believes Mega to be a decent product, and we had a heated discussion. He takes particular issue with the following points I made –
1. I said “there is no stop loss or OOP (out of pocket) maximum with Mega”. Michael claims that all the others that say they have a stop loss or OOP max are lying, because there can be exclusions that can not be covered in the stop loss or OOP max. Well, I’ll give him that, but I’d still rather have a stop loss and OOP max with some exclusions than nothing at all like Mega offers.
2. He claimed that my own insurance company, Fortis, does not cover people hurt on the job. Funny, that’s the same way I was trained at Mega, and I’ve verified that to be totally false. It was always the eaiest way to roll self employed people off of Fortis, until I found out it was not true.
3. He claims that if you get cancer or another illness, your health insurance company (in Oregon) can raise your rates or choose not to renew you. I say that’s just not true, and I encouraged him to call the insurance commission and verify his facts. I believe they cannot do that to you. IT”S ILLEGAL in Oreogn! If I’m wrong, someone please correct me.
In Oregon the insurance commission is at 503-947-7980 and the website is http://insurance.oregon.gov.
On the Oregon insurance commission website is the “Consumer Guide to Insurance Complaints”
In it, it says this, –
“A complaint index of 1.00 is average. That means the company’s share of confirmed complaints is equal to its share of business in Oregon. A complaint index of 2.00 means the company’s share of confirmed complaints is twice as large as its share of business.”
Out of ALL the insurance companies listed, Mega is rated the second worst for 2004 with 7.56. That’s 7 1/2 times more complaints than their fair share.
In 2003 it was the third worst at 12.43 and in 2002, it was the second worst with 8.79. Wow! I think I rest my case, Michael.
In the interest of full disclosure, Fortis was rated worse than Mega in all three of those years with a higher “complaint index”. I’m surprised by that, and have been real happy with them, but the facts are indisputable.
Michael says:
For those who like to live on the river De’Nile an imaginary stop loss is comforting, until the bills show up. Custom products require honest, informed, caring agents who strive to build plans that fit the needs of their clients. Not all products are right for all people. All plans offered throughout the U.S. have holes in them. I use statistics and client need to design plans that best fit. When a good fit does not materialize, I recommend alternative sources for coverage. I do this on a daily basis.
I do not discuss other insurers or their products with potential clients, in fact; I have not once in three years even looked over a competitor’s policy with a client (to reinforce my point). All info shared with the public (via licensed insurance agents) regarding insurance sales requires prior approval from the licensing authority in the state of business.
Thank you Scott for having the courage to stay on the phone with me for so long, I know it was unpleasant for you at times. My only motive in life is to seek the truth in all things and I enjoyed furthering that pursuit with you.
charles says:
in texas nase/mega limits the dollar amount of ALL outpatient treatment… that is if nase agent even puts it on the policy… yes, that included cancer treatment and things like mri’s and cat scans… the limit is somewhere at 1000 a day… that wont cut it… they also limit doctor visits by number and dollar amount… have a crummy rx card and limit the amount of surgry and misc charges as well as a daily room rate for a hospital stay…. they recived much needed press in the wall stree journal in 2002 and a reprint in the local newspaper regarding the crooked practices of nase… they also have several class action lawsuits regarding their practices… the deductible in texas is per period of conf. vs. calendar year…. they are a joke
Arun says:
Hi,
I wish I had read this article before I landed in my bad experiences with NASE/Mega. The agent who came to my house repeatedly said that there was no fine print- that 100% would be covered by Mega for my wife’s preganancy related expenses. An example of one of the bills is : Approx 450 bucks is the total amount of which my liability is 389 bucks. There are some bills where out of 200+ , Mega has covered $23. Then there are classifications like “preventive is not covered” (even when the lack of treatment is fatal to the baby). My request to all who read this is – please inform your friends and relatives to keep away from this scam.
Barry van Gerbig says:
Scott is absolutely right in asking any MEGA sales rep to answer what the MAX. Out-of-Pocket (OOP) expenses, per calender year, could be.
ANY MEGA REP SHOULD BE REQUIRED TO CARRY THE SAME MEGA POLICY HE/SHE SELLS THE MOST . . . AND SHOULD NOT BE ALLOWED TO SELL IT UNTIL HE/SHE HAS RECEIVED A “REAL” HOSPITAL BILL FOR MAJOR/MINOR SURGERY, OR HAS A FRIEND OR RELATIVE WHO HAS RECEIVED A MAJOR/MINOR SURGICAL HOSPITAL BILL UNDER COVERAGE FROM MEGA LIFE/NASE.
Washington State’s Insurance Commissioner forced MEGA LIFE/UICI to “cease and decist” selling policies through NASE, due to massive complaints of “deceptive marketing practices.” THAT MEANS THEY ARE BANNED FROM SELLING IN THE WHOLE STATE ! ! ! MEGA LIFE was told it was required to revamp their marketing “tactics” and sales/policy literature before they can sell again. Ask Micheal to explain why, nationally, MEGA LIFE/UICI has had to “settle” a class action lawsuit covering the exact same fraudulent practices. And when they “settle” they’re not admitting to any “wrongdoing.”
The MEGA rep who is still selling, like “MEGA MIKE,” might say that there will always be a bad egg here and there, which is true . . . but one Florida MEGA/NASE regional sales manager was quoted as saying that she was told by her “superiors” to basically train agents to misrepresent, “gloss over,” or “not fully disclose” any gaps in coverage (exclusions in MEGA policies).
ALSO . . . MEGA “FINE PRINT” STATES A MAXUMUM BENEFIT AMOUNT . . . PER MAJOR/MINOR SURGERY OR CATASTROPHIC SURGERY. That means that if MEGA will only pay a maximum of $25,000 for open heart surgery, you pay the rest. In our case . . . the MAX. “surgical benefit” was $20,000, per event. They have the final say on what they consider “reasonable & customary charges” for any surgery or procedure, as far as what they will re-imburse. A HOSPITAL, SURGEON, LAB OR ANESTHESIOLOGIST CAN SEND YOU A BILL FOR WHATEVER YOU WERE “UNDERCOVERED” FOR (WHAT MEGA WON’T PAY), BASED ON WHAT THEY CHARGE. And the deductable is for a per-event basis(per hospital confinement), so if you have to have the same surgery or a different one in the same year, you have to pay your deductable again.
REMEMBER . . . a good insurance company will pre-negotiate all surgical/proceedural costs with hospitals/networks so that you only pay what has been negotiatied.
MEGA’s INPATIENT room charges benefits can also leave you seriously exposed to uncovered expenses, by 60-80%, unless you buy additional MEGA “RIDERS.” IT’S AS THOUGH YOU’RE EXPECTED TO GAMBLE ON WHAT MIGHT GO WRONG WITH YOU.
THE BEST WAY I CAN EXPLAIN A MEGA LIFE POLICY . . . is it’s like buying Swiss Cheese with all the holes in it. If those holes are all the things that could go wrong with your body, Mega wants you to figure out which problems you may face, in advance, rather than offering a policy that has fair coverage in all areas. Many of the former NASE/MEGA reps said even they didn’t know what they were selling, so they couldn’t begin to explain the heart of the coverage and its limits . . . or they do know what they’re selling, but they’re making too much $$$ to care.
My wife and I have lost at least $20,000 on UNCOVERED medical issues due to MEGA/NASE’s “lack of full-disclosure.” Remember that the plan they push the most, 98%, is what Mega calls a “Preferred Plan,” and it is the plan that leaves you the most exposed to Out Of Pocket expenses. It is the policy they make the most profit on, because it covers the least. It’s often marketed/explained as a MAJOR MEDICAL POLICY, but it’s only Basic Expense coverage.
Their marketing is driven by the fact that people are lazy, believe in people, and are too busy to read the “FINE PRINT.” These were our mistakes. Shame on us . . . but I still have the hand-scribbled coverage that the agent begrudgingly left for us on a piece of paper. He had no MAX. coverage literature to leave, and they are trained to not leave such documentation. I could go alot deeper into what we went through, and I have at least 100 pages of “FORUMS” from NASE Agents & Victims that can show you that MEGA & UICI don’t care about what happens to those who don’t read the fine print.
There may be honest MEGA agents out there, but the parent company, UICI’s, corporate culture is making profits by hiding behind these bogus, “non-profit associations,” like NASE, where they are bound by fewer regulations from each state insurance commissioners . . . and they are investing $$$MILLIONS in each state’s political arena, to persuade your congressmen/women & senators to loosen regulations for these “associations” even further.
The associations, like NASE, are lawsuit-proven “marketing arms” of MEGA LIFE/UICI. If they really cared about you, why would they only offer MEGA. WARNING: Other major insurance carriers have seen the profits UICI has made and are hopping on the bandwagon, buying up these “non-profit associations” to use for their own risky insurance plans. REASON: profits are so high, that a few class-action lawsuits here and there don’t offer enough of a penalty to keep them away.
We missed the fine print in our policy . . . like when my wife had to have one tumor removed from each foot, on separate occasions, and a benign tumor removed from her breast . . . all were OUTPATIENT SURGERIES. Small print = “Outpatient Surgery” covered to a maximum of $1,500, period. We had to actually start negotiating with the hospitals, through the surgeon directly.
This is what the insurance industry is coming to. They’re not in the business to lose money. YOU HAVE BEEN WARNED.
Todd says:
Lol,
I represent Mega now and fully go over coverages with my clients. The policies do have max out of pocket limits and do have riders that should be put on every plan for cancer etc.
Quit dogging a great company that is kicking the wind out of the old Hmo’s. I know for a fact that this company does not rip off anyone and if people would expect to pay for what they get they might not have any problems. Many times people want the cheapest but expect the most and that doesnt happen in insurance.
Using this site to sell your crap plans is so whiny its laughable.
Best of luck…
Scott says:
Well Todd, if you had actually READ all the posts here, you’d see that I’m not “using this site to sell my crap plans…”.
I’m actually using http://www.oregonhealthinsurance.net for giving people no oblgation health insurance quotes, but I’m not doing it here.
This is actually a blog where real people are posting their real experiences and opinions, and some are “pro” and some are “anti” Mega.
I suspect you’re just someone hired to go out and dispute the stuff online about Mega. Good for them. That’s what they’ve got to do.
However, for you to write “if people would expect to pay for what they get they might not have any problems” is pretty funny.
Yes, if only people realized that there’s no free fide in life, and salesmen might lie to make a buck, then they’d be disappointed a lot less.
If anyone wants more real people talking about Mega, look to this forum and search for “Mega” – http://insurance-forums.com
Brent says:
Scott I find it both amazing and impossible all at the same time that you are such an expert in the field of Computers, Technology, Cell phones, More and now Insurance??
Do you even sell insurance? What is your base of expertise built upon? If so, how do you ever find the time to do all of the above and also run this Blog.
Jack-of-all-trades, but master of none!
What a sad existence.
The MEGA office that I happen to work out of happens to give us strict instruction that we are not to say all of the very things that you accuse us of. Maybe you or some of your cronies did experience such un-ethical tactics. However, this abuse is rampant and runs wild in all insurance companies. Why? Because you and those that follow are all out for the same thing that all sales agents are after. A SALE!!
Why is it that MANY of the companies, the ones you speak of as being so GREAT, are being sued in the local area I live by 2000 physicians for using things such as “Reasonable” and pre-admission requirements as a cost cutting measures.
Why is it that all of these so-called great companies have a whole staff of lawyers working for them? You know how many work for MEGA? Only (1). Email me and I will give you his number.
The sad truth is that health care in America sucks and so do all of the insurance companies that represent it.
I have heard sad story after sad story from people that have been on all of MEGA’s COMPETITOR plans. If MEGA is part of the problem fine, however YOU ALL STAND HAND IN HAND WITH US!
Maybe you and all of your followers should actually go out and sell your insurance plans to those that need them instead of wasting your time BLOGGING and Dogging MEGA.
If the plans you sell are so good you wouldn’t be wasting your time worrying about what MEGA is doing.
-Brent
Missouri
Scott says:
There’s no reason to insult me personally, or the legions of people who feel they’ve been screwed by Mega.
I’m glad your MEGA office is so ethical, and I’m sure that when people buy a policy from you, they know what their maximum out of pocket will be for any incident. That’s great, and I’m sure you sleep well at night.
If you actually read what I’d written here and elsewhere, you’d have seen the answers to your own “questions”…
1. No, I don’t sell insurance anymore.
2. My expertise is based upon the fact that I DID sell insurance for Mega and was “Rookie of the year” in 2002 for my disrict in Portland because I believed in the product.
3. Answering a few posts is not alot of work. Amazingly, you Mega agents seem to be giving it a life of it’s own, and all the activity keeps bringing to the top of the search engines. Thanks!
4. Yes I agree that the whole insurance industry stinks, and that lots of companies do lots of unethical things, and routinely deny claims as “unreasonable”, and use deceptive tactics for sales, etc. and that’s why I left the industry altogether.
Now I have one for you…
If they’re so good, then why, in 2004, was Mega ranked by the Oregon Insurance Commission as having the second highest “compaint index” in Oregon of all heath insurers? A flook? and in 2003, and 2002, they were ranked the third worst.
It’s easy to find Megas compaint record in your statem, and see how they stack up, or the record of any insurance company. Just go to Google, and search for “insurance compaints state name” then find the report.
If the reports are .pdf files on your State Insurance regulators website, then use the “search binoculars” inside Adobe Acrobat to find the company name. Oregon’s is here
Your own state (Missouri) says “A complaint index of 100 is considered average” while rating them a 551 for health insurance, and a whopping 3642 for life insurance! Wow, you must be really proud. Here’s a link to prove it
As far as me being so busy, that’s nothing compared to the ONE lawyer you claim to be in the employ of Mega and UICI. One attorney? Do you really believe that, or are you flat out making it up?
Here’s a link to the details of some of the multiple and class class action lawsuits that your SINGLE LAWYER agreed to settle in May of 2004. He must really be tired…
http://www.selfemployedweb.com/nase-2.htm
You say I’m “wasting my time”, but I think answering these Mega inquiries is my penance for all the inferior policies I unwittingly sold for Mega with no out of pocket maximums or stop losses.
Since I’m online all day anyway, I don’t mind. It also gives me a chance to refer people to my affiliate site where they can get anonymous quotes for insurance in any state, at http://www.oregonhealthinsurance.net*
*I am no longer an agent for any insurance companies in any state. The above website is merely a place to get quotes for health insurance.
By the way Brent, I deleted your other duplicate post. I’ll let you comment all you want, but no copy and pasting comments, please…
Sheri says:
I appreciate this web site! I had a meeting today with a NASE/MegaHealth insurance salesman, completed the application but held off on writing the check. After reading through this web site, I sat down and carefully read through all of the fine print in the brochure. I am shocked at just how little they do cover. Even on the ‘riders’ for additional coverage, it’s just not much coverage. You are doing a good service!
Bruce Loth says:
This discussion thread makes for interesting reading and I googgled across it while seeing what the buzz on the Internet was these days regarding MEGA.
My reason for searching? I was contacted yesterday by an investigator for the Bureau of Insurance, State Corporation Commission, Commonwealth of Virginia. I haven’t had a chance to speak with him but the discussion should be interesting.
When I became self employed in 1994, I contacted the National Association of Self Employed, NASE, (I didn’t know any better at the time) regarding health insurance. A NASE “representative” (e.i. MEGA sales rep) came to my house and signed me up after a hard sell.
What I ended up with was an expensive policy and a bunch of worthless NASE benefits. Fortunately, I wised up and by 1995 had a far superior health plan for 1/3 the cost of the MEGA plan.
I’ll post again after my discussion with the investigator (I’m hoping to stick it to NASE).
Lee Blair says:
I sell for MEGA in Illinois and we have a full portfolio of their products from the defined benefit Health Choice Plan that you seem to be making referance to here to the Signature Plan which is arguably the best plan in the US (and yes it has a calendar year deductible.) The fiduciary responsibility we as agents have is to fully explain what a given plan will and won’t do so the customer fully understands what they’re getting. There are no surprises if the agent does this however,(industry wide) not many do. MEGA is not immune to this. The problem is not the plans that are offered nor is it the company that offers them (whoever they are). The problem is the agent who either doesn’t know what they’re doing or doesn’t care. Either way, its a problem for the customer. It is patently unfair however to blame an entire company for the unethical practices of a few of its independantly contracted agents! Mega has some excellent policies and frankly has hurt no one, that’s right, no one. Unfortunately the Health Choice Plan can be built with very low limits and is designed to be flexible so the customer can select the benefits they want and set the limits they can afford to have, but they have to be guided by an ethical agent that knows what they’re doing and is looking out for the best interest of the client. Typically, there are better choices for the client in Mega’s portfolio. Only two products have a “period of confinement” deductible, all the rest are calendar year. Frankly, arguments can be made for both. Like I said before, Mega is not immune to bad agents, but let’s be fair and accurate, no company is. I’ll welcome all comments and/or rebuttals. But before you call, have your facts straight and be prepared to argue them, because when it comes to health insurance, and the facts, I’m the expert.
Lee Blair (630)215-3857
Scott says:
Lee, you sound honest, and if I lived in Illinois, I’d probably look you up and call you.
WHowever, wat I feel is inherently bad about Mega is that the “customization” ability allows agents to strip it down so far, and that can leave the coverage to be pretty poor.
That’s great for someone trying to hit a price point, but bad for someone (i.e. most people)unaware of all the exclusions and limitations in an insurance policy.
If you strip a car of the power windows, air conditioning, AM/FM/CD player, leather seats etc. to make it affordable, those shortcomings are readily apparent to a customer.
Doing the same thing to a health insurance policy seems unfair. It’s up to the consumer to investigate and know the difference.
Lee Blair says:
Scott,
Its really up to the agent to explain what stripping down a policy could and probably will mean to them should they ever have to use it for anything serious. There are plenty of people out there who when left to their own devices bought a plan through another company based on price and what they read in a trifold brochure that was sent through the mail either directly from the company or from a broker, then found out the hard way what the plan was about when they used it. That is not good business practice on either side of the sale. It is true that some of Mega’s plans can and do lend themselves to being able to be “stripped down” (while there are others that are entirely comprehensive), and yes that’s a problem however, it comes down to the need to have agent’s with enough backbone and integrity to walk away from that business or explain it. First rule of business should always be: never put a customer in harms way, never leave them in harms way.
Second rule of business: always fulfill rule # 1
Third rule: can’t figure it out? dust off your resume
Lee Blair
Tess says:
Would anyone be willing to write or speak with me about the issue of agent training re the application for Mega Life and Health, I would sincerely appreciate it! The attorney I have is saying if we had a former “insider” we could consult, we might have a case. Mega’s attorneys are saying I had pre-existing conditions not listed on the application. I purchased the insurance 9 years ago. Any help would be most sincerely appreciated. I have researched the internet for months and have much information but need someone who was an agent for NASE/MEGA to help me. Thank you!
Rich says:
i am currently looking for Health insurance in the state of Massachusetts. I just recieved an apox quote form a Mega insurance agent. Now i am getting a little sceptical about Mega. Could anyone put me in the right direction for the State of Massachusetts?
Scott says:
http://www.mass.gov/doi/Consumer/Get_Smart/css_get_smart.html –
Write or phone and ask about Mega’s record in Massachusetts – the site says this –
“Massachusetts consumers are urged to call the toll-free Get Smart Hotline at 1-866-SMARTWEEK or visit http://www.naic.org/gsw to obtain free information about what they should expect from insurance coverage as well as tips for confirming whether a policy is legitimate before they buy.”
Get anonymous quotes for insurance in any state, at http://www.oregonhealthinsurance.net
rich says:
Thank you for the information, looking at the Naic site. Is 12 complaints for 2003 and 11 for the year 2004 execcive for an insurance company? Here is the reasons for the complaints.
http://www.naic.org/cis/codeReport.do
and i apriciate your fast responce to my initial question. I wish i could buy insurance in Oregon with you all. Someone told me and i don’t know if it its true. Does this sound right? The Mass legislation passed a bill that allows anyone to get health insureance and cannot be turned own by any insurance company for an existing illness. And that is the reason why there are only a few carriors in the stae because of the risk they take and why are costs are so high?
rich says:
i just looked at somemore reports on Mega, it seemed they were over the national median in 2004 but in 2005 they had a 15% drop in complaints and in 2006 they are currently at 92% drop but the year is not over yet.
Scott says:
12 complaints sounds like hardly any. In Oregon, they post a “complaint ratio” number(Meaning a company with 12 compaints and 24 customers has a 50% ratio) and then they rank them that way.
It’s easy to tell at a glance which ones have the highest percentage of unhappy customers, but if you don’t know how many people are insured, you can’t tell.
If Mega was down 15% in complaint RATIO over 2004, then that’s a nice improvement and that’s something to be proud of. However, I wonder if they just have 15% less members? Someone should find out.
A 94% drop reported in February though is not really indicative of much, but it does sound better.
Yes, you’re right. The same thing happened north of me, in Washington. Mandatory coverage means many of the insurers want to get out. Who can blame them?
As an insurance company, in business for a profit, would you want to be forced to sell insurance to someone that’s confirmed to be dying right now? Amazing how some states try to “help” you…
Again, just to clarify – I do not sell insurance in Oregon or anywhere else. I’m an internet consultant and marketer, and you gan get a free quote here at http://www.oregonhealthinsurance.net
This Mega post has taken on a life of it’s own! I even got a “Cease and Desist” letter from UICI / Mega attorneys a couple of days ago!
In response to that, I DID change the unfair verbage in my posts that they cited specifically. I guess I was in acertain mood when I wrote them.
rich says:
thanks scott,
i did try to use http://www.oregonhealthinsurance.net but for my zip code 02019 i am not eligable
hehe, well if i was Mega or any company that didnt like what i read i would try the scare tactic too.
well good luck and thank you for your opinions and everyone else’s
jay says:
Reading some of these postings, I can relate. We just had a baby and had some complications right after he was born. He ended up being taken to the ICU, was there for about a week. I figured I was going to have to pay the deductable, then 20%. I was already cringing. Now I’m looking at an additional 10,000 in medical bills! This insurance will only pay $80 a day for a physician visit – one specialist alone charged $2500! I assumed that the difference would be applied to my deductable. I could go on and on. I can’t believe what a scam this company has pulled on me. This is the first time we’ve really had to use the insurance and we’re being ripped off. Is there any way to go after these guys? I can’t believe that this is legal. Would it do any good to call the guy who sold me the plan? -
Scott says:
Wow, Jay! That’s awful –
Yes I’d call the guy that sold it to you, but more to beinterested in knowing if he still works there, or if he left. Show him this post and get his opinion.
Unfortunately for you, the company probably paid exactly as the policy states it will.
I have only two Mega posts on my blog.
Hhowever, on this one –
http://www.pdxtc.com/wpblog/archives/31
there’s a post from an attorney offering to help Mega dissatisfied customers.
I obviously cannot vouch for anything someone posts here, but my opinion is that you should email him.
I hope everything with your child is fine now, and plese come back and update with any new info…
Rich says:
Good Luck Jay, hope you and your family are all well, and btw i didnt go Mega. I thought about it and after every thing i read i desided not too.
Thanks for all your help
Claudia says:
Just received my membership and insurance documents from NASE. A little confused, and a lot pissed-off. Received a thank you memo for opting to have my association fee directly withdrawn from my account. Nothing signed to that effect. I was told that my first year was free and 199.00 thereafter, small print seems to indicate around 400.00 per year. Can’t even begin to understand the policy benefits. Not even sure whether the membership fees are included in the monthly premium or in addition.
Couldn’t understand why, since I am the small business owner, had to hire my husband and establish policy in his name, given that everything I read from IRS website indicates that in order to deduct premium policy needed to be established in trade name?
just received policy today. seriously need advise.
I would appreciate any input.
Thanks
Scott says:
If it were me, I’d call my sales rep before the 5 day free cancellation period (In Oregon it was 5 ) and get them to make me understand it all clearly.
Sounds like you were told something that was not true. They never gave away the first year of membership that I heard of. It was always $35 added per month on auto withdrawal.
It’s easier to learn and understand it right now than it will be after an expensive hospital stay. Get your rep on the phone asap!
Karen says:
We have a Mega Rep. coming to our home tomorrow night. After reading some of the comments I am having second thoughts about this company. How can I find a good hlth. insurance plan for the self employed in Virginia? By the way is this a common thing for them to come to our home?
Thanks for any help.
Scott says:
If it were me, I’d talk to a local insurance agent in Virginia about an HSA plan – (That’s a Health Savings Account)
follow this link – http://tinyurl.com/7ofeo
on the left side – 4th link down – you can get a quote for a Health Savings Account.
I’m not an agent anymore, and can’t offer legal advice, but I’m self employed and real glad I have an HSA!
Mario Williams-Mack says:
Hey,
Im an insurance agent with United American Insurance Company. I have replaced a lot of clients’ Megalife/NASE policies with United because they were not offering the products and benefits like we offer-ie guaranteed renewable, same in every state, local agents, lower rates, and no association fees (because we are the insurance company).
Scott says:
Why are the strongest defenders of Mega almost always anonymous, but people like Mario tend put their names?
Todd says:
This guy is full of hotair, too bad you have to steep to low blows to sell your plans. I represent Mega and do so proudly. Your marketing is slanderous and sad. Mega’s plans are highly rated and will protect you, just wait till you see our new line. Dont be selling off fear and misinformation, you should be ashamed.
Todd
Toni says:
My mother bought a Mega policy and the coverage it provided for her battle with colon cancer was horrible.
She trusted the “NASE” rep when he told her that her new “group” policy would protect her. When she went for chemo, we found out exactly how bad the policy was. For a $7500 treatment, it paid $1000. How many treatments can most people afford like that?
Any major illness will leave mega ploicy holders bankrupt! People, always ask your agent about the maximum out of pocket!!
Scott says:
Todd – If you could read, you’d see that I’m not marketing ANYTHING or selling insurance at all. I’m a former Mega agent that grew a conscience and quit, thna a couple of years later I made a blog post. Now taken on a life of it’s own.
Tony – Yes, EXACTLY correct – the Mega insurance in Oregon that I sold offered people an ADDITIONAL rider at extra cost, that paid for up to a whopping $1000 a day chemo treatment. Woefully inadequate. You’re lucky to have bought that rider though… See why I couldn’t sleep well selling Mega?
Todd says:
Scott- I can read and your insurance quote site isnt selling insurance? Your idea of honesty is far from mine. To all those people misled off this site please contact your states insurance commission. Your lies and propaganda are sad scott. I would lay money on the fact your fixing to get your tail sued off. To all others the Nase with Mega insurance is a great deal. We have HSA’s, Catastrophic, and basic Plans that let you chose what is best for you. Dont be misled by people who have to resort to unethical marketing, which is illegal by the way scott.
Todd – a proud Mega Agent
Scott says:
That site of mine is for EHealthinsurance, giving anonymous insurance quotes. I’m not a licensed agent, and not marketing anything beyond information.
If there’s anything I’ve written that’s not true, feel free to point it out and I’ll correct it, or more likely, back it up with facts. Lies and propaganda? Please, point out a specific untrue fact.
I do agree with you Todd that all people SHOULD contact their state insurance agencies and find out where any company ranks for customer complaints before they buy. they should also know their out of pocket maximums, and be aware of the exclusions and limitations of ALL insurance, not just Mega.
If I get sued, I suppose they’ll also sue Business Week magazine, who wrote this article called “It’s enough to make you sick” -
Or maybe Mega should sue this law firm in Oklahoma called Richardson, Stoops, Richardson & Ward who makes their money representing clients who have purchased fraudulent health insurance from Mega Life & Health Insurance Company and Midwest National Insurance Company, both owned by UICI in Dallas. I suppose that’s unethical too?
And maybe they should also sue the Wall Street Journal, who wrote an article claiming “Several states are examining what they believe are sales abuses and deceptive practices in the growing market for health insurance sold through associations” and the star of the article is your pal, Mega and UICI -
Here’s the text of that article on another attorney’s website that ALSO apparently likes to sue Mega / UICI- http://www.jameshoyer.com/problem_association_wsj.html
And I hope they don’t forget to sue ConsumerWatchdog.org, who posted this article from the Saramento Bee, August 29 2005 where they quote the California Foundation of Taxpayer and Consumer Rights -
“No other policy sells patients health care coverage that promises so much yet delivers so little,” spokeswoman Carmen Balber said.
And while they’re at it, those lawyers should be sure to sue AM Best too, because they just had the GALL to revise UICI’s rating downward again -
AM best was established in 1899, is the world’s oldest and most authoritative insurance rating and information source – Click here for story
Why don’t the Mega agents that are so “proud” ever put their Mega website address, or link to policy details so people can investigate for themselves and decide?
Todd says:
Scott,
Here is the website so you can educate yourself.
http://www.naseweb.com/raymondphillips .
Mega products on this site are available in NC,WV & VA.
Todd