Cancer & HI Plan Sales Prohibitions

[WCMason]

Some agents offer cancer and HI plans to help MA clients with OOP costs. About 25% of my book are MA clients but I've not sold them these products because the few carrier products I've looked at have this statement in the brochure: "This policy should not be purchased as a supplement to Medicare or Medicare related health plans."

Do agents that sell these ignore this? Have a compliant workaround? This statement is in the literature in all six states I'm licensed in.

 

[Chazm]

"Should"
I think they mean in regards to knowing this shouldn't replace a supplement to Medicare which it's not a "Medicare Supplement".
No compliance issues because no where does it say it's not allowed

 

[WCMason]

"Should" I think they mean in regards to knowing this shouldn't replace a supplement to Medicare which it's not a "Medicare Supplement". No compliance issues because no where does it say it's not allowed

Thanks. I took "Medicare-related health plans" to mean MA or med supp.

 

[Chazm]

Thanks. I took "Medicare-related health plans" to mean MA or med supp.

Haha don't thank me yet. I have no clue really.

 

[somarco]

Have you asked the carrier (or IMO) for written clarification?

 

[taterpeeler]

I think supplement means rather than

 

[BobbyMcGee]

I use to write a few GTL's until they ran afoul of the Fla. DOI.
Anyone using Medico?

 

[thomasm]

I like GTL's HI because you can match up the daily hospital (up to $600) and skilled nursing copays (up to $200) to the MA plan they have. Plus you can throw in the $200 ambulance rider. It was designed well to complement Medicare Advantage. Of course you may need to adjust the copay amounts if their plan changes or they switch plans during open enrollment.

 

[WCMason]

Have you asked the carrier (or IMO) for written clarification?

Haven't asked carrier. Upline said there was no problem pairing these with MA but did not have a good explanation for the meaning of that caution.

 

[somarco]

I wasn't being flip, but if company literature indicates you are not to sell their product with other Medicare lines I would ask for clarification.

Some of these type plans I have reviewed are explicit about making sure your client understands they are not Medicare SUPPLEMENT plans.

Certainly understandable.

But many of them are designed to provide an extra revenue stream for agents who want to have something in their quiver so they don't walk out of the house without an application.

Personally, I have never seen the value in a limited benefit add-on plan which is why I never promote them.

I also don't see any value in dental or vision insurance but make it available if someone asks and insists.