I want to clarify what you are saying. When I am with a prospect, I don't tell them that they need to sign up for "X Plan" and have them sign the paperwork. I tell them that given their current circumstances, they should choose between A, B, or C and give them the basis for my recommendation, then steer them towards what I feel is the best option. I make it appear to them that they are making the decision, even though I have essentially made it for them. For instance, right now in Iowa with Loyal, Plan J is cheaper than most F plans. For what is available to them today, it is more value to have Plan J instead of BCBS Plan F. The gamble is that when M & N come out, will they be healthy enough to change plans if those plans would be better. I still don't see clients choosing Plan J as a bad choice. They still keep their coverage that won't change. Again the only gamble is if they want to change later, will the be healthy enough? That is true if I sign them up for any other plan. If we don't change today, will they be healthy enough when M&N are available? Will they be stuck with BCBS Plan F?
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I do understand what you are doing Tim. It is one way of doing it. I just happen to do it differently. I am not trying to be argumentative.
Obviously there is more than one way to sell a Med Supp. Apparently that method is working well for you. My method works extremely well for me also. "If it ain't broke there is no reason to try to fix it".
In my humble opinion there is no difference between J and F. I feel the same way about J as I do about F. Plan F, in my mind, became obsolete when Medicare made changes around the mid 1990's.
Since then I haven't even suggest any other plan except Plan D. It would be pointless for me to give them an choice or an option because the only plan I recommend it Plan D. I have actually gotten up to leave an appointment when the woman insisted on Plan F.
I suggested she take a Plan F with another agent and told her I would contact her again in six months to sell her a Plan D. She asked me to return to the table and I wrote her a Plan D.
When I finish educating them about Medicare and Medicare Supplement insurance they really don't want anything else except Plan D.
I still feel that for clients who have purchased Plan J and are keeping it that it is not a good decision for reasons I stated earlier in this thread.
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I just happen to cover that in the training I offer. Did I just hear you say you wanted to sign up?
Medicare made very significant changes regarding doctors who do not accept assignment. They put limits on the amount they could receive. There was also a dramatic change in how doctors who do accept assignment get paid.
As a direct result of those changes today over 99% of doctors nation wide now accept assignment. The Excess Charges benefit of Plan F is specifically there to address doctors who do not accept assignment.
If virtually all doctors today do accept assignment then Excess Charges are not an issue. If there are no Excess Charges then why should a prospect pay extra for a policy that has that benefit?
This assumes that Plan F and or J are substantially more than a Plan D. It Missouri there is a huge difference. However, even if there is only a slight difference in premium I may still recommend a Plan D. If an insurance company increases the premiums, and the percent of increase is not the same for all plans, Plan D typically gets a smaller percent of increase.
It is important to me that my client not only get the best deal today but also "tomorrow".
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I think you may have opened a new door for me. The group that I first learned how to sell Med Supp insisted on Plan J for the reason that I have stated; plus I think higher commissions could have influenced that decision. After reviewing Plan D, I think I like that for the obvious reasons. The one thing that makes me nervous is the lack of coverage of Part B excess, but I don't know how often that is a factor. Do doctors take advantage of the opportunity to charge excess very often?
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Almost never, but, even if they do charge excess, it's limited to 15%. For example, on a $100 Medicare approved bill, the doctor could charge $115 if so inclined. Medicare would pay 80% of the $15 excess or $12. That would leave $3 for the person on plan D to pay out of pocket. Frank estimates that only 1% of dotors in his area even try to charge excess. It's less than 1% in Ky.
It's really a non issue.
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Tim,
I will be happy to talk to you further about why I only sell Plan D if you would like to give me a call. I'm pretty passionate about what I do and why I sell Plan D.
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Completely incorrect. Medicare pays exactly zero of the excess chargess. The 15% winds up being 9.25% but let's go with 15% to keep it simple. The following is not exactly correct, but it is the way I explain it to my prospects - again to keep it simple.
Medicare allowable is $100. Medicare pays $80, the supplement pays $20. If the doc doesn't accept assignment, and the client has Plan D, the client pays the 15%.
However, neither Medicare nor the supplement will pay the doctor. Why, because he wouldn't accept assignment of the claim. The money goes to the client.
So now the doctor has to hope he gets $115 from the client AFTER he does all the billing instead of knowing he'll receive $100.
By the way, the actual amount is not $15, it's really $9.25 but that's too much information to explain to my clients.
Let's assume the net premium difference between Plan F and Plan D is $275, after deducting the $135 Part B deductible that is not paid by Plan D. (It's more like $500-600 in Missouri). At 15%, that would mean that the client would have to incurr bills of almost $2,000 from doctors that don't accept assignment.
Since only 1% of the doctors won't accept assignment and knowing how much Medicare limits charges, it becomes almost impossible for Plan F to be a money saver for any client.
I'm tired of typing. I'm sure Frank will be along to correct my simplification.
Rick
