2025-MAPD & PDP what does your Crystal Ball say?

[kak6407]

I wrote a T65 UHC Female G in NC for 3/1 - no discounts - $117/mo

Just noticed today on Jarvis they put a billing statement letter we can read. That might be new because I never saw it (?) unless I just didn't notice it. It shows her premium next year already - which is cool - but it's $132. $117 to $132!

I know they're complicated in how it's calculated but in real life $132-117 = 15. 15/117 = 12.8%+

12.8%!

And this is UHC on a T65... Known for stability...

I just saw this letter two as a client hit me up yesterday about her and her husband getting seperate billing notice. She was very confused as they have always billed together, as you know. She failed to read the first two pages that explained what they were doing

That's odd on your rate the client showed. On her rate notification, which she is 68 (in NC too) and started on the policy in March 2021. Her rate is showing now at $116.11 and in March 2025 will go to $122.68.

 

[DonP]

Bob touched on it, but I'll dive in as well. In Georgia, UHC typically has their annual rate change in June. They have released the rates for June 2024 to May 2025 and they are jumping substantially. I'd imagine they will lose some business here in Georgia. When your T65 female rate jumps from $139 to $161.25 (both prior to any discounts and in Area 1), you just aren't going to get as many enrollments when there are much lower cost options. Area 2 rates have a slightly lower increase of 13.3% (from $136.75 to $155).

Of course, other carriers may very well have large increases at renewal time as well. I just checked Humana, and they are going from $126.09 to $136.06 in the same area as UHC's Area 2 rates for T65 female. That's a much smaller increase and separates them by nearly $20. For those who take advantage of the gym membership, it may still be worth going with UHC or Anthem. But for those who don't care about that benefit, it would be hard to justify paying an extra $20 per month.

One of the things we've been able to tout over the years with UHC is consistency in keeping rate increases to a minimum (usually single digits). We won't be able to say that any longer.

I’m shocked middle income to upper income people would even say a word with a $20 to $25 a month rate increase with the crazy inflation increases there seeing with other items . Not if your pdp goes from $40 a month to $80 i can understand questioning it . My trash bill is up 80% in the last 3 yrs

 

[somarco]

One of the things we've been able to tout over the years with UHC is consistency in keeping rate increases to a minimum (usually single digits). We won't be able to say that any longer.

So this was your fault? Because you talk too much?

 

[sman]

I’m shocked middle income to upper income people would even say a word with a $20 to $25 a month rate increase with the crazy inflation increases there seeing with other items . Not if your pdp goes from $40 a month to $80 i can understand questioning it . My trash bill is up 80% in the last 3 yrs

The $20+ range rate increase is the mark where I start getting calls from many Med Supp clients. Believe it or not, there are plenty of people who enroll in a Med Supp who aren't remotely close to wealthy. They may have seen $10 increases for 3-4 years in a row and now they get a $20+ increase. So over 4-5 years their premium has increased $700+. They feel that. Especially when added to all the other increased prices.

I was just bitching about my trash/recycling bill the other day. It was under $90 per quarter maybe 5 years ago. Now it's $165 per quarter.

 

[sman]

So this was your fault? Because you talk too much?

Guilty

 

[somarco]

Believe it or not, there are plenty of people who enroll in a Med Supp who aren't remotely close to wealthy

Our book is probably similar. A few folks with 7 or 8 figure portfolio's but most are middle income folks.

Like you, I do everything I can to mitigate rate increases but sometimes there are no options. A few, but not many, opt for the $0 route, but usually they talk with me before jumping ship.

Some that did leave would like to come back but they can't. As one person said, MA plans are like the Roach Motel . . . easy to check in, impossible to check out.

The only clients that complain are the ones who are healthy . . . but that was true with the U65 clients as well. But they don't stay healthy forever and once they go down all they can do is stay where they are.

 

[Cdevin]

The least expensive Plan G option for T65 in my area (female) went from $178 to $189.

I just saw this letter two as a client hit me up yesterday about her and her husband getting seperate billing notice. She was very confused as they have always billed together, as you know. She failed to read the first two pages that explained what they were doing

That's odd on your rate the client showed. On her rate notification, which she is 68 (in NC too) and started on the policy in March 2021. Her rate is showing now at $116.11 and in March 2025 will go to $122.68.

Where are people seeing future rates? I am looking in Jarvis and unable to see it.

 

[sman]

Where are people seeing future rates? I am looking in Jarvis and unable to see it.

They sent out an email on 02/28. You can also see them in Jarvis under Knowledge Center > Portfolio Overview > Medicare Supplement Plans > Rates and Underwriting > Choose a State > Annual Rate Change.

Lastly, they also have the rates listed under Sales materials.

 

[somarco]

Where are people seeing future rates?

 

[sman]

I talked to my Humana rep today. He thinks things go back 10 yrs on benefits and copays next yr

That sounds like a good thing. MOOP's were lower then (at least here in Georgia). I just looked at a 2015 Summary of Benefits with an Aetna PPO (zero premium) and the MOOP was $4,300. Humana wasn't as generous. Metro Atlanta PPO was $6,700 and had a $52 monthly premium. Their HMO was zero premium and a MOOP of $5,900.