CIGNA MedSupp Experience

[Superchief]

I guess we have a philosophical difference. It's been my experience (at least in the areas I work) that many times one carrier may be the least expensive plan. For example, here in Georgia, New Era has been the least expensive for the T65 crowd for about 3 years now. So they get just about 100% of that portion of my business. This means if you are doing what's in the best interest of the client, it's hard to not put all your eggs in one basket. Or at least a large portion of your eggs in one basket. I guess my question to you would be,

Do you recommend not selling the lowest cost plan to your clients with a carrier who has a good rate history?

Secondly, I believe in being proactive with my clients at renewal time. I reach out to my clients to make them aware of their new premium AND let them know if there is anything less expensive. Sometimes this results in moving them to another carrier. And other times it doesn't. I feel by being proactive my clients understand I have their best interest at heart. What this has done for me personally is created an understanding that anytime they have questions or someone is trying to replace my business, they contact me prior to doing anything. Almost certainly because I do more than any other agent with which they've ever worked. Not to mention every time a friend or family member starts talking about the subject matter they refer them to me because they know I want to do what's best for them and will keep them informed.

So, I don't agree that making a habit of moving clients away from carriers who have a big rate jump isn't in the clients best interest in the long term. Wouldn't you rather be the person informing them of the savings as opposed to some other agent? I can't tell you how many clients I have gained over the years whose agent didn't inform them of potential savings.

How would you feel if your P&C agent reached out to you if you had a big rate increase on your homeowner's insurance? My homeowner's policy had an 80% rate increase this past year. I had no claims. Have never had any claims. I didn't hesitate switching to another carrier. Unfortunately I had to call my agent and let him know to find me another carrier. Sure would have been nice if he were proactive about it.

As for selling Plan G over Plan F, I agree with you. It works great in my area with New Era. There's a $22-$28 monthly premium difference between the two plans for the T65 crowd in Georgia and the rate increases on Plan G have been smaller than with Plan F.

We don't have that problem (or luxury depending on your view point) here in TX. In the 9+ years I have been selling, I have never seen one company maintain the lowest rate with low rate trends for a very long period on Plan F. The difference in premium between the cheapest rate and the 10th cheapest is usually no more than $20; especially now with so many new compaines in the market. That makes it a lot easier to mix your business across a few carriers. And usually if one company in Texas has the cheapest rate by a large margin for a long time, we're seeing big hikes in the next 1-2 years tops.

I have no issues in being proactive, but I've found that the vast majority of my clients won't balk at a rate increase at 15% or less. Of course that also depends on the client. I don't have to notify them of a rate increase though, the company and their bank account will do that for me. I find that me notifying them to be redundant work. However I send them a birthday card and policy anniversary notification with thank you. This serves two purposes: thanks them for the business, and reminds them of who they need to call if they have a problem. So for the few clients that have a problem with their rate increase they will call me.

Of course that is not 100%. Yes, I lose business to agents who call on them to sell them something else. But that is usually only on the hard headed clients I have that absoutely won't buy anything BUT Plan F, which I 100% advocate against. Some people just don't lsten. My persistency on all Plans NOT F, far exceeds my persistency on Plan F. And for those people I chalk it up to a cost of doing business. Could I save more business if I personally called everyone of those clients and roll their business to a cheaper plan? Very likely. Does it take alot more time and effort to do so? Unequivocally yes! I value my time and freedom above everything else and refuse to be a slave to the fear of lost business due to rate hikes. I'd rather spend that energy finding new business or enjoying my hobbies.

It doesn't make your way wrong. Just a different way of doing business. And because of the situation you're in with New Era crushing it in Georgia, maybe that's the best way to go about it. If all of the sudden they took a 20% rate hike it would likely spin your head for a bit, but from what I've heard from them, it's unlikely. But a 20% plan F increase in Texas is not at all unlikely. Happens every year. I never ever see it on Plan G though, even with MOO.

 

[senior-advisor-indiana]

We don't have that problem (or luxury depending on your view point) here in TX. In the 9+ years I have been selling, I have never seen one company maintain the lowest rate with low rate trends for a very long period on Plan F. The difference in premium between the cheapest rate and the 10th cheapest is usually no more than $20; especially now with so many new compaines in the market. That makes it a lot easier to mix your business across a few carriers. And usually if one company in Texas has the cheapest rate by a large margin for a long time, we're seeing big hikes in the next 1-2 years tops.

I have no issues in being proactive, but I've found that the vast majority of my clients won't balk at a rate increase at 15% or less. Of course that also depends on the client. I don't have to notify them of a rate increase though, the company and their bank account will do that for me. I find that me notifying them to be redundant work. However I send them a birthday card and policy anniversary notification with thank you. This serves two purposes: thanks them for the business, and reminds them of who they need to call if they have a problem. So for the few clients that have a problem with their rate increase they will call me.

Of course that is not 100%. Yes, I lose business to agents who call on them to sell them something else. But that is usually only on the hard headed clients I have that absoutely won't buy anything BUT Plan F, which I 100% advocate against. Some people just don't lsten. My persistency on all Plans NOT F, far exceeds my persistency on Plan F. And for those people I chalk it up to a cost of doing business. Could I save more business if I personally called everyone of those clients and roll their business to a cheaper plan? Very likely. Does it take alot more time and effort to do so? Unequivocally yes! I value my time and freedom above everything else and refuse to be a slave to the fear of lost business due to rate hikes. I'd rather spend that energy finding new business or enjoying my hobbies.

It doesn't make your way wrong. Just a different way of doing business. And because of the situation you're in with New Era crushing it in Georgia, maybe that's the best way to go about it. If all of the sudden they took a 20% rate hike it would likely spin your head for a bit, but from what I've heard from them, it's unlikely. But a 20% plan F increase in Texas is not at all unlikely. Happens every year. I never ever see it on Plan G though, even with MOO.

How do you figure that it is easier obtaining new clients than servicing the ones you already have?

 

[JimmyUt]

On a side note, I submitted my first two cases, husband and wife on monday. She had no issues, but he has diabetes (oral meds) and had his gall bladder removed less than 3 months ago.(their UW guide said under 90 days needs a doctors note) They flew through underwriting and were approved today. Other than the redundancy between the application and the phone interview, so far so good.

 

[Superchief]

How do you figure that it is easier obtaining new clients than servicing the ones you already have?

Who said I'm not servicing my existing clients? When they request service I do my best to help them with their needs. They have a perfectly good working product and can get service from the doctor or hospital whenever they need. If I spent all my time telling them about how they need to switch policies again because I didn't get them the right plan the first time, I can't spend that time finding new clients and growing my business.

 

[senior-advisor-indiana]

Who said I'm not servicing my existing clients? When they request service I do my best to help them with their needs. They have a perfectly good working product and can get service from the doctor or hospital whenever they need. If I spent all my time telling them about how they need to switch policies again because I didn't get them the right plan the first time, I can't spend that time finding new clients and growing my business.

You made it sound like you didn't care if their rates increased and that you were too busy trying to get new clients.

 

[Superchief]

You made it sound like you didn't care if their rates increased and that you were too busy trying to get new clients.

Not that I don't care, I'm just not going to operate out of fear and preemptively call them thus opening a can of worms. Mrs. Jones your rate went up, are you ok? Can you afford that? Is everything alright? Am I going to lose my commission? I'm serving myself, not them. I prefer to remind them when I write the app... these rates are going to go up. If you ever feel they are a burden or if you need to make a change please call me and we'll work together to try and find something more affordable. I say I remind them because most of my business is replacement business where I'm moving someone who took a hike on their overpriced Plan F and put them in a D, G or N.

 

[senior-advisor-indiana]

Not that I don't care, I'm just not going to operate out of fear and preemptively call them thus opening a can of worms. Mrs. Jones your rate went up, are you ok? Can you afford that? Is everything alright? I'm I going to lose my commission? I'm serving myself, not them. I prefer to remind them when I write the app... these rates are going to go up. If you ever feel they are a burden or if you need to make a change please call me and we'll work together to try and find something more affordable. I say I remind them because most of my business is replacement business where I'm moving someone who took a hike on their overpriced Plan F and put them in a D, G or N.

I don't call them up every time they get an increase either but I am in the middle of calling my UOO plan n clients because they just got another huge increase. Most are stuck because if health issues though. I have some clients coming up on their 6th anniversary with one company too that I need to roll. I don't have too many clients leave me and I don't keep up with them like most people say they do on here.

 

[somarco]

FWIW, New Era has never had a double digit rate increase in the 10 yrs they have been writing gap business.

 

[Superchief]

FWIW, New Era has never had a double digit rate increase in the 10 yrs they have been writing gap business.

That's what I've heard, but they just haven't ever been a very viable option in Texas. Average rates, terrible comp. I've been really happy with Forethought's Plan G since 2010. Was already priced great, and their last bump was 3% if I remember right. Hoping to see that again for sure.
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I don't call them up every time they get an increase either but I am in the middle of calling my UOO plan n clients because they just got another huge increase. Most are stuck because if health issues though. I have some clients coming up on their 6th anniversary with one company too that I need to roll. I don't have too many clients leave me and I don't keep up with them like most people say they do on here.

What good is it going to do calling those poor folks stuck on MOOs Plan N? Just going to scratch open a nasty wound if you ask me. Unless you have a good MA option for them, they're done.

 

[JimmyUt]

FWIW, New Era has never had a double digit rate increase in the 10 yrs they have been writing gap business.

DO they have a E-app or phone sales process?