Client forgot to sign up for Part B

[Hopes]

Until a year or so ago it was somewhat predictable. Now it seems like everyone is ready to roll a block from the old carrier to the new one.

Before last year I probably moved 3 or 4 clients per year.

Last year I think I moved 40.

So far this year maybe 30.

Would have moved more but too many have health issues now and are stuck.

And it's not just the lowball carriers. Big names, especially the Omaha group, come out with new, lower priced carriers every 3 yrs or so.

Since 2010 we are on our 3rd Omaha and will probably see #4 by years end.

Our 4th Aetna carrier.

2nd or 3rd Cigna.

And now we have BX leaving to be replaced by Anthem.



When I run into folks who don't want anything other than original Medicare (rare, but it happens) I tell them about B.

No cap on your 20%. You pay until you get well, run out of money or die.

That seems to get their attention.

I didn't realize the umbrellas closed so quickly. That's a big change in the past couple of years.

I have been leaning towards the UHCs because of rate stability but if someone really wants the Aetna, etc because they "know" them, that's fine too.

I give them the you have "3 things that may change" talk: Plan premium, Pt B ded, and PDP premium. Can't do anything about Pt B ded and PDP prem/costs (other than shopping each AEP) but you can try to choose a Plan/carrier with more stable rate adjustments.

That's the only way I know to approach it.

I did try to talk to the previously mentioned person about the 20%/no cap, but he only laughed, talked about how that was debatable, reduced feed, and, and, and...

After all, his brother told him...it must be true.

 

[somarco]

PDP premiums are a non sequitur. They are irrelevant. What matters is the copay.

I encourage folks to look at tenure. In the past it was easy. Now almost every carrier currently writing business in GA has been here less than 3 years.

UHC is competitve on plan G. Their other "popular" plans (F and N) are middle of the road.

Why did it take so long for them to offer the G plan?

Why are they so competitive on G and not on the others?

How long will they stay competitive on G?

 

[Hopes]

PDP premiums are a non sequitur. They are irrelevant. What matters is the copay.

I encourage folks to look at tenure. In the past it was easy. Now almost every carrier currently writing business in GA has been here less than 3 years.

UHC is competitve on plan G. Their other "popular" plans (F and N) are middle of the road.

Why did it take so long for them to offer the G plan?

Why are they so competitive on G and not on the others?

How long will they stay competitive on G?

I have noticed that many plans have only been around a few years even though the parent company has often been around quite a while.

I'm guessing they wanted the higher premiums on Plan F since it more than pays for the Pt B deductible.

Competitive on G because they know some people will jump because of branding? and stay for the same reasons?

This makes me wonder, though, why they have generous UW guidelines.

On one hand, I think, the larger the umbrella, the better they can absorb the claims. On the other hand, I think, the larger the umbrella, the more the risk.

 

[somarco]

many plans have only been around a few years even though the parent company has often been around quite a while.

The parent is not the issue.

Downstream carriers can be spun off any time the parent wants to move in a different direction. In many cases, the parent withdraws the subsidiary from a state and replaces it with another. Or they put the sub on the shelf only to reintroduce at a later time with, SURPRISE, lower rates.

Too often the beneficiary or the agent put their faith in the name of the parent. They believe the parent will shore up the sub if they are losing money.

It doesn't work that way.

The sub stands alone financially. It sinks or swims.

You aren't buying from the parent. You are buying from the subsidiary.

I'm guessing they wanted the higher premiums on Plan F since it more than pays for the Pt B deductible.

For the most part, F plans are very profitable. If the carrier is aggressive on GI business, a stupid move, they will pay for it down the road.

For too long carriers and agents have pushed the F plan because there was almost nothing to explain. Couple that with a household name and you have a recipe for gouging the policyholder.

Carriers that pay full commission on GI eventually figure out they made a mistake and correct.

Competitive on G because they know some people will jump because of branding? and stay for the same reasons?

New sales of F go away in 2020. Carriers that for years shunned offering the G plan are now getting on the bandwagon. Most carriers have been promoting G for several years and agents had to actually learn how to explain the OOP cost of the deductible.

Some agents never figured out how to explain it so they continue to sell F. They will probably find something else to do when F is no longer offered.

When you see a carrier that is suddenly offering G and they aren't competitive on the other plans you can probably bet their G rates will eventually creep up and become run of the mill.

This makes me wonder, though, why they have generous UW guidelines.

Because they can.

A carrier that is willing to write substandard business usually does so at a significantly higher rate in an attempt to discourage people from buying. Those blocks are small and not profitable. A loss leader.

Similarly, most carriers are not competitive under age 65. A female with an ATL zip and under 65 will see F rates from $204 to $2798 per month.

That's quite a spread. Most of the carriers are above $500/month. Since this has evolved into a thread about UHC their rate is $1188.

Guess they really don't want sick people after all.

On one hand, I think, the larger the umbrella, the better they can absorb the claims. On the other hand, I think, the larger the umbrella, the more the risk

Bigger carriers can absorb the risk of dumb mistakes but the Medigap business SHOULD be profitable . . . unless the carrier does some really stupid things.

Like throwing a plan N party and writing anyone who can fog a mirror.

Or paying full comp on GI business.

Household name carriers don't need agents. They know people will buy regardless of the rate charged.

And that is a self fulfilling prophecy.

That's why UHC and BX dominate the market in every state. It's the Field of Dreams play.

If they build it the people will come.

When a carrier doesn't need the agent the sale is transactional. They only want order takers.

Agents who worked the under 65 health insurance market before 2014 soon found out that most carriers, especially those with name recognition, were quick to jettison the agent. They accomplished that by cutting comp way back, in many cases to $0.

I never want to be in that position again. That is why I left that market and transitioned to Medicare.

My only regret is that I didn't make the move sooner in my career.

 

[Chazm]

I’ve still yet to write a GI policy that hasn’t paid full commission. Must be a state by state thing.

 

[somarco]

I’ve still yet to write a GI policy that hasn’t paid full commission. Must be a state by state thing.

Most of the remaining 57 states pay little to nothing on GI (other than anniversary and birthday rule)

 

[goillini52]

Most of the remaining 57 states pay little to nothing on GI (other than anniversary and birthday rule)

I think Indiana requires full comp on GI, probably others too. Illinois doesn't, but there are 3 that I know of that pay full comp here.

Also, there are 59 remaining states. According to Barry the Kenyan, there are 60 states.

 

[somarco]

"Most" of 60 is anything over 31

Just a wag, but I guess you can find at least 31 states where "most" carriers pay something less than full comp on GI

 

[goillini52]

"Most" of 60 is anything over 31

Just a wag, but I guess you can find at least 31 states where "most" carriers pay something less than full comp on GI

I think it's most pay 1/2 or less. I think there're only a couple of states that require full comp for GI. One of the 3 I mentioned that pays full comp for GI in Illinois, is BCBS and they only pay 10% to begin with as they're GI all the time...no health questions. It's nice to be able to write somebody a Med Supp while they're in a nursing home.

I was just lookiing for an excuse to post that video.