AARP Indemnity plans for Individuals 50-64

May 5, 2008

  1. retread
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    retread Guru

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    I specialize in the senior market. Last fall ('07) I decided I would expand from the 65+ market to the 50+ market with the introduction by AARP of the 50-64 Indemnity plans. I am dually licensed in KS and MO, with KS my home state. AARP's plans are only offered in MO. Not a problem, right? There are carriers I am appointed with that offer Med Sups in one state but not the other.... This is not unusual. Read on....

    I was already appointed with UHC, and they provided the course training requirements for the intial product offers (Essential and Essential Plus). I completed the certification, and was then told by the UHC DSU that I had to have an appointment with Aetna to sell the Premier product. I couldn't sell any of the 3 plans unless certified with all, so I got my appointment with Aetna. Aetna was then to provide training and certification of the Premier plan.

    Today, I received a call from Aetna telling me the Hartford will not allow me to sell the AARP plan (Premier) in MO because I have a non-resident license. It seems the Hartford is the customer service agent for AARP.

    After 3 months of effort, I am now told to forget it.

    I feel like Costello asking Abbot: Who's on first?

    Maybe they just need more carriers to help get this really messed up, but I think they have done a good job already.
     
    retread, May 5, 2008
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  2. Winter_123
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    Winter_123 Guru

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    Don't know what to add to my earlier posts where I have stated about as clearly as I can that UHC's DSU is completely worthless and hopelessly confused and in areas where they have clear guidance it is usually wrong. Whenever I say that someone jumps in and says that they are great and it all depends on who you talk to. Wrongo. They just boggled my mind everytime I dealt with them and finally just chucked them, their med supps and their MA's. You end out wasting tons of time doing their job for them. Their products and organizational units are so hopelessly divided up that you can shop around forever. Most of their support reps just put caps on toothpaste for a living and if you dont ask about their particularly cap they have no idea. And then there is the whole routine where they will give you a service request number and forward your inquiry to some other part of the bureaucracy. You will never hear from them again. Worthless. Dump them and dont look back.

    Winter
     
  3. somarco
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    somarco That Medicare Expert Guy

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    somarco, May 5, 2008
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  4. retread
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    retread Guru

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    Yes, I realize UHC's AARP products are mini-meds, or Limited Benefits. However, the Aetna product "AARP Essential Premier" is not. It is a comprehensive policy. Agents who sell Limited Benefit policies better know what they are selling to their clients. If you do not explain clearly what the client's risk exposure is, you are not doing your due diligence.

    Every client has the right to demand a cheap insurance policy. The fact that you have access to one does not mean you are required to push it. By knowing its limitations, I can show the client why NOT to buy it, and let them make the decision. If cost is an absolute necessity, then SOME insurance is better than NONE. Mini-meds are sometimes the only choice for minimum wage earners in a small business environment and don't have employer-provided group.

    Not every person has the financial means to cover all risks. You cover what you can reasonably, and explain the danger that may remain, and suggest that they increase their coverage at their earliest ability.
     
    retread, May 5, 2008
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  5. indmedins
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    indmedins Guru

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    Are all AARP UHC plans limited? I was looking at one of these plans and could not find the limitations. It even states catastropic coverage on the summary of benefits page. This particular plan I was reading had a $5 million lifetime max, $1,000 calandar year ded, 80/20 with a max oop of $2,500. Nowhere in the plan did I see caps on covered expenses. The only non-covered items are your usual items. Please direct me on the AARP UHC plan where there are limitations that I may have overlooked.
     
    Last edited: May 5, 2008
  6. retread
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    Essential Hospital: Pays $200/300/500/700 per day depending on plan level (first day no pay), 730 day lifetime max. (highest level, $700 x 730 max = $511,000 lifetime)
    Surgery: $100/150/200/250 ... 3 PROCEDURES/YEAR!

    Essential Plus Hospital: Pays $900/1200/1500 per day depending on plan lever (first day no pay), 730 day lifetime max.
    Surgery: $5000/7500/10,000 max PER PROCEDURE

    If this isn't limited benefits, I don't know what is! Even with the most expensive plan, $10,000 isn't going to cover a major medical event!! Doubtful it would even cover a broken leg.....

    Average hospital charge per diem is about $5000/day semi-private room, $15,000/day for ICU.

    Have you been certified yet?
     
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    retread, May 5, 2008
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  7. indmedins
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    indmedins Guru

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    From what you have decribed, I certainly agree with you!

    I don't see any benefit caps on the AARP UHC I am looking at. Are the caps you are talking about on the summary page? They are not there on the one I read. Also, I don't recall seeing the plan name Essential written anywhere on or in that policy. I am in Florida if that makes a difference. Perhaps AARP UHC has different plans for the Florida market.
     
  8. xrac
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    xrac Guru

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    Good eye opening article about selling limited pay plans. You had better make sure you have signed disclaimers if you sell these and a good E&O policy. Isn't going after the agent the next step for those who chose limited pay plans and then get burned.
     
    xrac, May 5, 2008
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  9. retread
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    It's in the producer guide.
     
    retread, May 5, 2008
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  10. somarco
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    somarco That Medicare Expert Guy

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    I have not looked at the AARP plans in a while (other than the UHC limited benefit plans). When I have looked, they offer either street products or "private label" that are the same as street products. I am not aware of any carrier that is catering a plan just for AARP.

    The only mystique about AARP is in the mind of the member. There are no deals there, especially on insured products.
     
    somarco, May 5, 2008
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