Aarp Medsupp Rate Increase

[axeman462]

So I just got an email this morning about uhc increasing aarp medsupp rates in florida.i have not been doing this long enough to experience a rate increase. The rate increase is not that big; only averaging 2.6% depending on the plan.

Should I call all my customers and let them know? Do I freak out?

 

[SukiSays]

I would be relieved knowing the increase was only 2.6%. No need to freak out imo.

 

[openmindedone]

I always mention at the time of sale that rates will go up every year. They are not going to freak out about a single digit increase.

When i started out i wrote a company called continental general. The first rate increase i had to deal with was 30% and new policies only had a 6 month rate guarantee. I freaked out.

So 2.6 is awesome. Also, at least with AARP it only goes up once a year. Other companies will have a rate increase and then on the anniversary give them the age increase. Even though the age increase is very small, it seems to really bug people having to see a rate notice twice a year.

 

[jacobtn]

So I just got an email this morning about uhc increasing aarp medsupp rates in florida.i have not been doing this long enough to experience a rate increase. The rate increase is not that big; only averaging 2.6% depending on the plan.

Should I call all my customers and let them know? Do I freak out?

do you freak out? strange question. Did you not realize med supps increase in rates annually? UHC typically takes the smallest increases across the industry. Now if you had sold them Mutual of Omaha, you might have a reason to freak out.

 

[axeman462]

ok now i'm confused. the "annual rate increase" email I got was referring to the birthday increase?
I was under the impression that it was an additional rate increase to the birthday increase...

I always tell the customer at the time of sale to expect an annual increase when they get a year older. But the email I got sounded like it is an additional increase. It states "annual increase effective January 1, 2014"...

 

[Mink]

Florida does not have an annual Birthday rate increase.

 

[Russ]

So I just got an email this morning about uhc increasing aarp medsupp rates in florida.i have not been doing this long enough to experience a rate increase. The rate increase is not that big; only averaging 2.6% depending on the plan.

Should I call all my customers and let them know? Do I freak out?

In my area, a 65 year old non-smoker is around $180 a month for plan F. A 2.6% increase is about $5 a month. I'm satisfied with that small of an increase. I would not freak out over that.

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ok now i'm confused. the "annual rate increase" email I got was referring to the birthday increase?
I was under the impression that it was an additional rate increase to the birthday increase...

I always tell the customer at the time of sale to expect an annual increase when they get a year older. But the email I got sounded like it is an additional increase. It states "annual increase effective January 1, 2014"...

Florida is issue age. Does not go up simply because the insured is older.

 

[goillini52]

ok now i'm confused. the "annual rate increase" email I got was referring to the birthday increase?
I was under the impression that it was an additional rate increase to the birthday increase...

I always tell the customer at the time of sale to expect an annual increase when they get a year older. But the email I got sounded like it is an additional increase. It states "annual increase effective January 1, 2014"...

The annual increase is to cover the extra coverage they're getting, because the supplement has to increase the coverage to cover the higher deductibles and co-pays that go in to effect at the beginning of each year.

 

[axeman462]

I could be mistaken but the aarp medsupps go up every year because they "lose" the aarp discounts. I understand that is not the same thing as "attained age" pricing, but to the consumer, it seems awfully similar.
So it will be going up twice for the customer next year; once for a price increase, and then again because the aarp discount decreases a little bit right?

But for a 2% increase in premium, is this something I should be calling them about? Or will the phone call seem like I am making a bigger deal out of something that is miniscule?

 

[goillini52]

I could be mistaken but the aarp medsupps go up every year because they "lose" the aarp discounts. I understand that is not the same thing as "attained age" pricing, but to the consumer, it seems awfully similar.
So it will be going up twice for the customer next year; once for a price increase, and then again because the aarp discount decreases a little bit right?

But for a 2% increase in premium, is this something I should be calling them about? Or will the phone call seem like I am making a bigger deal out of something that is miniscule?

I wouldn't call them because of a 2% increase. If they've had a supplement for a couple of years, they know to expect increases and will be happy with an increase of 2%.