Changes to meidicare supplements for 2009?

[Frank Stastny]

I would take him up on a 70/30 bet for whatever he wants to bet. I will bet $70 to every $30 he puts up that he is wrong that A-J will not be sold in 2009.

I'll take some of that action also. There is no way that with less than 5 months notification that Medicare is going to do away with Med Supps.

However, I will take all the Med Supps any of you have gotten in the last two years. Better to give them to me rather than throw them away. Doesn't matter which state, I can license in any of them.

Maybe the rumor is true after all. Send me all your "old, cold" leads now!

 

[patch36]

BTW, States do not set Med Sup rates, they only approve the rates when submitted by the Med Sup company. Lots of Med Sups are going up in rates again for the 2008-2009 year, but that is normal.

 

[JustinUpright]

I want some of that bet too. I have been on the gov site and alot of others. No mention of canceling any plans. A lot of talk about what will change or be new. It seems the carriers will be telling everyone what they are doing late this month. I think your guy is full of horse hockey! Like I said I will put some money down.

 

[senior-advisor-indiana]

ITS TRUE!!!!!!! 75 of my clients with an unnamed company recieved a letter today stating that their med supp is gone 12/31/08!!!!! HOLY SHEET! How did this get under the radar!?!?!?!

 

[theinuranceguy]

I have to disagree with you on this one. Med Supps are not regulated by the states. The premiums companies charge for those plans is set by the DOI in each state a company sells supplements in.

The benefits provided by each of the standardized plans is set by the fed. States have no power to change the coverage provided. Companies can choose which plans they are going to offer. However, I believe that each company must offer Plan A and there may be an additional one.

My bread and butter is the Med Supp market, I do not sell Advantage plans, PFFS. I can't believe that any of the rumors he is speaking of are true. I would have heard something by now.

You're right Frank... Standardized Medicare supp plans are regulated by the feds... I misread the question.

As for premium, I'd disagree that is regulated by the state, or that the state sets the premium for a med sup... this is not regulated by anyone but the insurance company... as long as they are not cherry picking individual people.

 

[Frank Stastny]

As for premium, I'd disagree that is regulated by the state, or that the state sets the premium for a med sup... this is not regulated by anyone but the insurance company... as long as they are not cherry picking individual people.

Either things are totally different in Ohio from the rest of the country or you have misread the question again.

The fed requires that 60% of premiums collected on Med Supp policies must be paid in claims. If less than 60% is going to pay claims then the insurance company must either give a refund or lower premiums.

If more than 60% of premiums are going to pay claims then the company can apply to the state DOI and request an increase.

Companies selling Med Supp policies cannot just grab a figure out of the air and decide that will be the new premium.

 

[patch36]

...and that is how I understand it also. Rate increases are approved at the state level and they have to have appropriate justification and documentation.

 

[senior-advisor-indiana]

I thought it was 65% in claims? Can we get some clarification on this?

Who is the moron posting about their clients recieving that BS letter?

 

[theinuranceguy]

2. Loss Ratio Provisions -- see 42 U.S.C. º 1395ss(r)
Under OBRA 1990, any policy issued after November 5, 1991 was required to obtain a 65% loss ratio for individual policies and a 75% loss ratio for group policies and return to policyholders premium amounts collected in excess of these standards. Compliance with these requirements is verified through an annual filing of a worksheet showing the experience of those policy forms. However, the effective date of the state requirement was not the same as that of the federal requirement. H.R. 5252 resolves the difference between the federal effective date and the state effective date on refund calculations and also subjects all Medicare supplement policies to the same loss ratio and refund calculation requirements. However, for policies issued prior to May 1, 1992, the requirement for the 65% loss ratio for individual policies and 75% loss ratio for group policies and refund or credit against future premium payments apply only to the experience occurring after the revised standards are promulgated to implement H.R. 5252.


I was not familiar with this law... Interesting.

 

[senior-advisor-indiana]

Thanks for confirming that I was right. Maybe next time you will just say...

Ah Mike, No need to check the numbers, you are always right.