Health Insurance and Coventry

Coventry is a relative newcomer to Georgia. They entered the individual major medical market in Atlanta and a few other metro area’s in the second quarter of 2007.

To staff their offices they hired quite a few folks away from BCBSGA which, in my opinion, proved to be a bad move.

Coventry decided the best way to make a splash was to essentially duplicate popular plans offered by BCBSGA, making a few changes, and coupling the major med with a dental plan from Delta Dental.

In an effort to quickly gain market share they offered rates that were 20 – 30% below market and coupled it with loose underwriting that resulted in almost every application receiving approval.

They quickly got religion and made an abrupt, and almost schizophrenic shift in underwriting [Read more…]