Commission

[sman]

and again

so while you guys are worrying about what commissions you are going to make off of your customers in years 3 thru 10 -- i am changing them
so dont bother doing the math -- someone will show them the way of medadvantage

last year i wouldnt of said this -- but medicare has changed
you cant help it

ok im done

What makes you think we aren't showing our clients both options? I'd rather have an informed client. That way they won't come back and ask you why you didn't tell them about something. They also call you when they are considering making a switch. Assuming of course you've don the right thing for them.

So come on down here to Georgia and show the AF plan and I will show a Med Supp and a much better Med Advantage plan and we'll see who gets the business.

 

[Sam]

Come on people, there is no reason to make this personal. Can't we all just get along!

 

[maryjd123]

What makes you think we aren't showing our clients both options? I'd rather have an informed client. That way they won't come back and ask you why you didn't tell them about something. They also call you when they are considering making a switch. Assuming of course you've don the right thing for them.

i certainly agree --- this is what i am talking about -- everyone is different -- if you just say the best thing to do is get a medsup -- and not tell them about a medadvantage plan -- then you are going to get someone like myself come along and tell them about all options

i understand that i am in wyoming and it is different in every state -- that is certainly a very big difference in prices everywhere ---

my thing is if -- a senior is paying 300 dollars a month for a medsup -- that is 3600 a year -- when you have a max out of pocket per year with a medadvantage plan is 3k --- and if you are their to help your senior along -- if they need help with doctors offices etc etc -- my feeling is that -- thats my job -- i am there for my client every step of the way -- i have in a couple of instances picked up the senior and dropped them off at the doctors office -- that is the kind of relationship i have with my clients -- i am there for them -- everyone knows if you steer a senior wrong you might as well bite the bullet.
and yes i understand about people who like going to the doctor and having no copays --- but also you have to remember something -- just like i tell my clients -- you pay a copay every month of 150 dollars -- think about that. which would you rather pay?
just think what is going to happen next year when medicare goes 75/25
are these medsup companies going to lower their prices? or raise them?

and yes we were talking about commissions here -- im sorry i got off point ---- i was talking about keeping the same senior on the same medsup for 10 years -- going forward -- that is going to be hard -- so the point is -- as my husband always says -- never count your chickens before they hatch

and what i meant by yelling is ---- flaming with the discussion -- lets get it started..
i love it!

and melmunch -- dont worry this isnt personal
its discussion

 

[policy doctor]

I couldn't pass up this lively discussion. I have found that everytime the med sups go up, I would lose some clients. Now that we have the competition from the MA's, we best have some in our satchel too.

Just today I had a long time client call me to tell me they had been talked into Humana MA by some agent and they signed up last week. Now she was rueing her action, had called UA ins co and was assured they would take her back if she switched again. Now confused and embarrassed, at least she called me on what to do.

Never mind that I had told her about MA plans back in November. Never mind that I cautioned her to check with their various drs. to confirm that they would accept MA before I would switch them if they chose. We have no control over what goes in their daily lives and thoughts, and evidently seniors are getting so many phone calls that they wear down and let some agent come in to explain "part D", or this new Medicare plan, or whatever. Moral: Make hay while the sun shines" Don't bet on renewals. I agree with Mary....I used to, but no longer, trust in renewal business. If the gov't doesn't kill it, the ins cos do. BTW...I've been selling med sups since Ronnie Reagan was pres. I remember making 50% comm on an app, and renewals built up quickly. It's all quicksand now.

 

[Frank Stastny]

Wow Mary, I'm glad I'm not working in the senior market in WY if med supps cost $300.00 per month.

In Missouri I can offer a 65 year old female a policy for $93.25 per month. That's $1,119.00 per year and they are able to go to any doctor, any hospital in the US. For those who travel a lot, that is a big plus.

I firmly believe that MA plans will eventually replace med supps but I still think that is a few years down the road.

I know several agents who are pushing their clients into a MA plan just because they get a large up front commission without helping the client make a truly well informed, intelligent decision about what is best for them today. I don't feel that as of "today" the MA plans are for everyone.

Policy Doctor,

"You buy them books all they do is tear the pages."

People have "selective memory". Sometimes I'm temped to tape appointments and then, at times like that, play the conversation back for them.

 

[midwestbroker]

One thing to remember here is that MA plans are not brand new plans. Part C is now in its 10th year. It was only available in major metro areas that have above 800,000+ people because they were HMO based plans.

A few years back PPO plans started showing up, and then after the Medicare Act in 2003 and PFFS plans hitting the market, they expanded to almost every county in America.

No they are not right for everyone. We as insurance agents should know that there is no one size fits all policy in any type of insurance.

Medicare does allow a member to go back to their supp free of underwriting if it is their first election to a MA plan within a 12 month period.

 

[sman]

Medicare does allow a member to go back to their supp free of underwriting if it is their first election to a MA plan within a 12 month period.

That's a good point midwest. I've attempted to use this in efforts to get someone to give an MA a try. One particualr case in mind was a recent person who has a Med Supp premium that has gotten too high. We reviewed several MA plans and they decided they didn't want to make the switch and would just keep their Med Supp. His concern was that his wife would not qualify for another Med Supp if they determined they didn't like the MA plan or their doctors wouldn't continue accepting MA plans. I explained that they could switch to the MA, if they didn't like it we could get them a much cheaper Med Supp. They still didn't want to do it.

And this is what I've been stressing throughout this thread. Once a person has a Med Supp, they just don't like the fact that by switching to an MA plan and having the potential out of pocket expense. They love the fact that they have no additional expense with a Med Supp. I think over time, the MA plans will become the norm. Assuming of course the government doesn't reduce funding to these plans. Those of you that remember the late 90's and Medicare Choice remember what happened when the government reduced funding. Of course, the companies have much more pricing power than back then. But the government is currently overfunding this program. So if it gets reduced, the plans will change and could be less appealing.

 

[midwestbroker]

Sman you have a great point.

When the government in the late 90's changed the funding for the MA plans, we lost about every carrier here in Kansas City. There were about 4 or 5 companies out here offering plans, and now only 2 remain, Humana and Coventry (Coventry left and came back, Humana froze their membership for a while).

I think we have at least 2 more years of this MA boom, before the next administration takes office and goes from there. I do think that they will have more difficulty changing the funding since MA plans have so many more members.

 

[sman]

Sman you have a great point.

When the government in the late 90's changed the funding for the MA plans, we lost about every carrier here in Kansas City. There were about 4 or 5 companies out here offering plans, and now only 2 remain, Humana and Coventry (Coventry left and came back, Humana froze their membership for a while).

I think we have at least 2 more years of this MA boom, before the next administration takes office and goes from there. I do think that they will have more difficulty changing the funding since MA plans have so many more members.

Yeah, imagine the politician who recommends we cut the funding for programs that help the elderly. The biggest problem right now is the fact that the government is spending more on the MA plans than what Medicare would normally reimburse. If they just cut it back to regular levels, we'll see some changes in plan benefits and premiums.

Here in Georgia, every single Medicare Choice carrier jumped ship in the late 90's. I still have people that ask, "Is Medicare Advantage like those plans in the late 90's that just cancelled us and left us high and dry?" Needless to say, those are the ones that stay with a Med Supp no matter what.

 

[midwestbroker]

I think that they justify the overspending by the fact that they are off the hook for claims and fraud associated with it, hence actually saving money in the long run.