Getting Schooled by Med Supp Clients

[John Galt]

When I know someone is looking at MOO I talk about plan N. I may or may not end up writing the N, but I have yet to lose to MOO in that kind of situation.

Except for the ones that don't call me back.

They probably bought MOO.

I always love hearing your wisdom...Im reading your replies and its sounding great and then just as alwasy BAM!!!!!!!!!!!!!!!!!!! I fall off my chair laughing.

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When it comes to Med supps, if you don't focus on price and they end up talking to me, I WILL get the deal.

So yeah go with that "I don't focus on price" thing...works well for me and happens everyday in my world.

Ok so Ill admit Im about to jump into the pool with the medsupp warriors. So be gentle here.....Ive read that price is very important, but then two days later the same poster will say that rate increase history is important too. I think Ill just focus on price and if there is a rate increase Ill call them back and re write with another carrier (if they can move). What do you guys think about them apples?

 

[senior-advisor-indiana]

I always love hearing your wisdom...Im reading your replies and its sounding great and then just as alwasy BAM!!!!!!!!!!!!!!!!!!! I fall off my chair laughing.

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Ok so Ill admit Im about to jump into the pool with the medsupp warriors. So be gentle here.....Ive read that price is very important, but then two days later the same poster will say that rate increase history is important too. I think Ill just focus on price and if there is a rate increase Ill call them back and re write with another carrier (if they can move). What do you guys think about them apples?

It sure has been a long walk to the pool for you.... Jump in already, chicken shiite! By the time you decide to start we will all be dead from Ebola...

 

[VaDwayne]

I got p'owned by two med supp clients back to back and I really didn't see it coming. The first was a lady that said she wanted me to be her agent and was excited to meet with me (big mistake to take that too seriously).

We met and talked for almost an hour and a half, she wanted me to explain exactly how med supps worked, the difference between carriers, etc. ...she told me from the start that she was sick of hearing about Moo and wanted other options. She settled on Aetna (Am Con), completed the app, and gave me a check. She called and left a message two days later (Saturday), that she had decided to go with another agent - Moo. She didn't have to tell me the reason, I knew the reason - $$.

Had another client (husband and wife) that gave me the same story. They wanted any other carrier but Moo, and they were right to want another one because Moo was Higher than the other two they were considering at their respective ages. They called back a week later to let me know that they had submitted apps to Moo over the phone directly. They told me that they were getting a great deal from them by taking Plan G. They specifically told me that they didn't want any plan but F and didn't want a company that gave high renewals. They changed plans and went with a company that offers high renewals.

The moral to the story is don't write anyone but Moo this year. They are smoking hot here in NC.

I no longer really sell med supps but sales are sales. Offer choices instead of just one.

"Mrs. *****, I've compared 3 Medicare supplement insurers. Company A is 185.00 monthly for plan F, Company B is 192.00 for the same coverage, and MOO is 168.00. Knowing that all three of these companies offer the exact same coverage, which of these three do YOU feel will fit best into your budget?"

 

[somarco]

I think Ill just focus on price and if there is a rate increase Ill call them back and re write with another carrier (if they can move). What do you guys think about them apples?

Some might think you are creating a lot of extra work for yourself, and setting yourself up for some unhappy clients.

Here's the deal.

Several agents (including me) have written any (or all) of the MOO companies at one time. Any agent that has been around this for a while will tell you, write them when they are hot (which is right after they introduce a new Omaha name) and 3 - 4 years later your clients will be mad.

Their rates have jumped 50% or more. In the interim someone had a heart attack, went on insulin, developed cancer, you name it and the only place they can go is to an MA plan.

If you are constantly chasing the low rate you will be trying to move the same people every year for a $10 - $15 monthly savings. The problem with that is if someone beats you to the punch with the latest fire sale rates you lost the client.

Why?

Because you taught them to buy the lowest rate rather than educating them on value which includes talking about plan G while every other agent is pushing plan F.

90% of my clients have plan G and most of them are with New Era. I continued writing them even when they dropped their FYC on IEP business because it was the right thing to do. A few months later they restored the old commission structure and I kept on writing them.

I am selling G when competitors are selling F.

Now that the latest Omaha brand is promoting the low rate of the month on plan G I lead with plan N.

Sometimes I sell N, sometimes G, but I always get them to think.

This year I have had a few clients call me up because some doofus showed them an Omaha G plan for $12 less. They wanted to know if they should move to Omaha.

My response is, "If you want to, go ahead. In 6 months that premium savings will disappear and you will have gone through all that for $70. Was it worth it?".

One guy even reminded me that I moved him away from United of Omaha three years earlier and saved him a lot of money. He didn't want to get on that train wreck again.

I tell people to look at current rate but also rate history. If the carrier (not their parent, the issuing carrier) hasn't been writing Medigap for 5 years they don't need to consider them.

That knocks out most of the lowball rates including Manhattan and OIC.

 

[Robert Bache]

I agree that selling value is very important and I do the same.

 

[StanTheInsMan]

I got p'owned by two med supp clients back to back and I really didn't see it coming. The first was a lady that said she wanted me to be her agent and was excited to meet with me (big mistake to take that too seriously).

We met and talked for almost an hour and a half, she wanted me to explain exactly how med supps worked, the difference between carriers, etc. ...she told me from the start that she was sick of hearing about Moo and wanted other options. She settled on Aetna (Am Con), completed the app, and gave me a check. She called and left a message two days later (Saturday), that she had decided to go with another agent - Moo. She didn't have to tell me the reason, I knew the reason - $$.

Had another client (husband and wife) that gave me the same story. They wanted any other carrier but Moo, and they were right to want another one because Moo was Higher than the other two they were considering at their respective ages. They called back a week later to let me know that they had submitted apps to Moo over the phone directly. They told me that they were getting a great deal from them by taking Plan G. They specifically told me that they didn't want any plan but F and didn't want a company that gave high renewals. They changed plans and went with a company that offers high renewals.

The moral to the story is don't write anyone but Moo this year. They are smoking hot here in NC.

SPOKEN LIKE A TRUE ORDER TAKER!!!!!!!!!
You lost two cases because you talk to much and listen too little. If you are just hocking the losest payment shows that you can't show the client the big picture. Get a plan you can afford and keep costs controlled for a lifetime not just a year. You are their agent and you will be with them through MOO, Combined, United Healthcare, and whoever else shows up as the flavor of the day. You are the kind of agent that talks themselves out of sales. I can tell this by all your belly aching. Man up.Be a lifetime agent not order taker!!!!!

 

[senior-advisor-indiana]

SPOKEN LIKE A TRUE ORDER TAKER!!!!!!!!!
You lost two cases because you talk to much and listen too little. If you are just hocking the losest payment shows that you can't show the client the big picture. Get a plan you can afford and keep costs controlled for a lifetime not just a year. You are their agent and you will be with them through MOO, Combined, United Healthcare, and whoever else shows up as the flavor of the day. You are the kind of agent that talks themselves out of sales. I can tell this by all your belly aching. Man up.Be a lifetime agent not order taker!!!!!

You must be a Bankers Life agent...

 

[somarco]

Stan, you have no idea what you are talking about.

You are their agent and you will be with them through MOO, Combined, United Healthcare, and whoever else shows up as the flavor of the day.

Sounds like you are the order taker peddling policies.

Some of us cultivate clients that stay with us through thick and thin. They have learned to trust us for the advice we give, even when there is someone $10 cheaper.

90% of my business is with one carrier and I haven't lost more than 6 or 7 clients over the last 4 years and two of them died. Most of the other 10% is with a different carrier but I do have a handful of clients with BX and MOO. All they do is complain about their rates and are pi$$ed because they can't qualify for a different plan.

 

[Bevo]

And if they're absolutely bent on going with MOO...would you not write the policies? I would, and I do all day long.

We as independent agents give our best recommendations, ultimately it's up to the client to decide. Are you going to lose deals and let them walk and sign up with another agent with MOO?

I won't. I respect your approach and opinion Somarco...I've been through it all as well. However, MOO is a big player, like it or not. And they ain't going ANYWHERE in the Med Supp space believe me. And people need coverage and people have their opinions.

My best advice is to present all their options, tell them everything...and let them decide. If they want MOO I'll take their business all day long rather than let them walk.

 

[somarco]

And if they're absolutely bent on going with MOO...would you not write the policies?

Nope.

I either catch them on the I-told-you-so rebound or they get stuck and have to deal with their decision.

I tell people all the time that I will guide them and give them advice to make good decisions. I also tell them if they get off track and want to sleep with today's cheap trick they can work with another agent.

You would be surprised how often that works.

Yes, the MOO companies write a lot of business, but not as much as it seems. They have more pi$$ed off policyholders than probably any other carrier.

My philosophy is let them get pi$$ed at the carrier, not me.

My clients love the advice and attention I give them. They also like the fact they don't have to shop around every year for a new plan. The PDP experience is bad enough without having to deal with medical underwriting and wondering how long today's low rate will hold.

My business plan works for me and has served me well for the last 20 years. It's not for everyone.