Effective April 1st, US Fire will be exiting the Med Supp market. It doesn't impact commissions for existing clients, but we all know what this means for existing business on the books. If you have any on the books and they are healthy, you might want to consider moving them.
Another one bites the dust - US Fire exiting Med Supp market
- Thread starter sman
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- 2,111
Not surprised. P&C companies just don't have the stomach for the medicare business. I expect that ACE will be next.
The one that did surprise me was Accendo. Didn't see that one coming.
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- #3
Seems that most of the carriers who use a TPA for their Med Supp business end up this way.
Wasn't Accendo under the Aetna umbrella? Did they exit the business or did Aetna just close it up for one of their other brand offerings? I mean, I know they stopped offering Accendo branded Med Supps, but was that any different than rolling out a new brand every 3-4 years and stopping the prior brand?
- 1,452
Somebody shared a link on the forum recently, stating that closed books are actually more profitable. I dont remember the discussion around it, but is that a reality?
- 2,111
This one was a little different. All Accendo did was drop their medicare supplements. They still offer their final expense plans.
Rumor has it that Aetna and CVS intend to offer a new medicare supplements through Accendo but without agents. Either in-house or direct. Same thing with Silver Script.
I do know that all of us that sold their fe plans were given new contracts minus the supplement plans.
I remember the post, but can't tell you who or when it was posted.
I don't see how a dead pool can be profitable. Healthy leave, sick ones stay. Premiums rise, usually by double digits. Pool goes into a death spiral and usually gone in 6 years or so.
- 1,452
I am inclined to think there a lot more healthy people staying, than we are guessing.
Look how many people hang on to the old mutual omaha pool policies.
I have a client who's husband has an Accendo medsup from Georgia, and the rate was never adjusted when they moved to Florida. As a result, his medsupp rate is well below the market rate for Florida. Any thoughts on whether or not Accendo will eventually raise it?
That has not been my experience but yours may be different. The only ones that stayed were too sick to move and did not want a MA plan . . . which in most cases would cost them more due to OOP costs of care.
