Health Reform and Med Supps

[Yoda]

Re: Health Reform???

With over 10 million seniors on MA plans, we will see CHANGE they will hate. This fall we will see major disenrollments.

At least Half will not be able to purchase a MedSupp. Five million seniors will become under-insured. 5 million will say: "Screw it -- I'll go with Medicare only".

5 million seniors will become under-insured!

5 million seniors will be screwed by Clunker Care!

Thats as bad a case of pure speculation as Ive seen yet since the bill passed. We dont know for sure if in the end Medicare Advantage will be killed off completely or not. We are still in the stage of only hoping that is the case at this point. I will keep my fingers crossed.

 

[MedSuppPro]

Re: Health Reform???

Thats as bad a case of pure speculation as Ive seen yet since the bill passed. We dont know for sure if in the end Medicare Advantage will be killed off completely or not. We are still in the stage of only hoping that is the case at this point. I will keep my fingers crossed.

Have you read the bill?

Do you understand Competitive Bidding?

Aren't you really a HOPE and CHANGE kinda guy?

When you jumped on this Forum, I was one of a few, if any, whom defended your right to blabber about your hidden agenda.

Now, I must agree with the vast majority that your a plant. A HOPE and CHANGE plant. It really is quite obvious. You never add any real knowledge to this forum and what little you do contribute is non-insurance related. Mostly attacks.

​

 

[Frank Stastny]

Re: Health Reform???

That is what I thought... Medicare will keep cutting costs, and the supplements will need to stay around to pay the difference. Hopefully the premiums don't become so high that people can't afford them.

I believe if you will look closely at the new standardized plans, especially Plan N, you will see that Medicare is already addressing those concerns.

I have felt ever since I began selling Med Supps that Medicare should initiate a small copay when seniors go to the doctor. Had they done that in 1990 when they first established the current standardized plans Medicare would not be in the financial condition it is today.

More importantly than the additional revenue it would have generated, it would have eliminated many seniors from going to the doctor as frequently as they do because it has become their "hobby" or a form of "entertainment".

I am somewhat disappointed that they didn't initiate the Part B copay for all plans. Even a copay of as little as $5 would save Medicare a lot of money by discouraging unnecessary visits to the doctor. They go to the doctor now because it is "free".

I think the way MOO has addressed that is an excellent approach for seniors. Their copay on Plan N is 20% of doctor charges or $20, which ever is the less amount. The premiums are also about 65% of Plan F.

Not only that but MOO has increased the agent's commission on Plan N to insure when selling Plan N the agent isn't going to suffer a substantial loss of commission. They have also made Plan N virtually guaranteed issue. In some states it is guaranteed issue.

I see all of these things as positive moves toward the longevity of Medicare. Those changes are also going to make a Med Supp much more affordable for more seniors.

Others may disagree but I don't think the sky is falling.

 

[Success]

Not that it matters a whole lot, but selling plan D probably helps out your loss ratio as an agent...

 

[Jack C...]

It does not look good for Insurance Agents selling Medicare Supplements.

When all is said and done, Medicare Supplement commissions will be 3% to 5%.

I have now talked to 2 people that have said the same thing, one is a Senior V.P of a major Insurance Company, and the other is a good friend of mine who is retired, but was in the Insurance business for over 30 years, including being a State Insurance Commissioner.for part of that time. Both have basically told me the following :
Medicare Supplement commissions will eventually be 3 to 5 % max, as Medicare Supplements will be required to be guaranteed issue, and will have to abide to the 80% to 85% rule in the new Health Reform just passed (85% of the premiums collected must be paid back to actual claims). That leaves just 15% profit for the Insurance Company, so at most 3% to 5 % will be passed along to the Agent..

Now is the time to find a new line of Insurance to sell, or a new line of work.

 

[Russ]

It does not look good for Insurance Agents selling Medicare Supplements.

When all is said and done, Medicare Supplement commissions will be 3% to 5%.

I have now talked to 2 people that have said the same thing, one is a Senior V.P of a major Insurance Company, and the other is a good friend of mine who is retired, but was in the Insurance business for over 30 years, including being a State Insurance Commissioner.for part of that time. Both have basically told me the following :
Medicare Supplement commissions will eventually be 3 to 5 % max, as Medicare Supplements will be required to be guaranteed issue, and will have to abide to the 80% to 85% rule in the new Health Reform just passed (85% of the premiums collected must be paid back to actual claims). That leaves just 15% profit for the Insurance Company, so at most 3% to 5 % will be passed along to the Agent..

Now is the time to find a new line of Insurance to sell, or a new line of work.

I'm not disputing what you're saying, but I'm not finding a new line of insurance to sell now or a new line of work. I'm 52...been in insurance since 1984. I'll go down with the ship...IF it is going down. At least I've got almost 4 years to watch it sink, IF what you say is true.

I will say this...I think it's going to eventually get to where insurance agents are mostly history. Not sure if it will be in my lifetime or not, but it's headed in that direction.

From reading up on what's just been signed into law by Obama, if I was writing the under 65, health market, that market is almost assuredly going to be....going, going, gone.

Hey....3% of something is better than nothing!
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Nobody knows for sure at this point. That being said it looks like med supps are going to around for years and years to come. The new Health Care Reform bill looks like it is going to kill the Medicare Advantage and that is the best news we have had in years. One of the biggest fears med supp agents need to worry about is the insurance companies trying to cut the agents out of the picture. And believe me if the insurance companies can they will. Theres alot of talk in that health care reform about creating "insurance exchanges" that makes me a tad bit nervous. If the public could be trained by the insurance companies to go to the internet to shop for their health insurance when they are underage then it would be that much easier to get them to go to the internet and shop for med supps when they become of medicare age. Of course at this point its all speculation but those exchanges they are talking about could end up steering people to buy insurance off the net. Who knows yet.

Yoda...they don't need us now. Every T65 I talk to and go see gets....in the mail....BC/BS of FL. med-supp literature...AARP literature, etc.

If the T65's would simply educate themselves on med-supps and how it works with Medicare and PDP plans...we would be history in this market.

Plus, they can buy a policy over the internet...on the phone. Good news is a lot of them want an agent to educate them on what they need to do. And they'll buy from you.

 

[Jack C...]

I'm not disputing what you're saying, but I'm not finding a new line of insurance to sell now or a new line of work. I'm 52...been in insurance since 1984. I'll go down with the ship...IF it is going down. At least I've got almost 4 years to watch it sink, IF what you say is true.

I will say this...I think it's going to eventually get to where insurance agents are mostly history. Not sure if it will be in my lifetime or not, but it's headed in that direction.

From reading up on what's just been signed into law by Obama, if I was writing the under 65, health market, that market is almost assuredly going to be....going, going, gone.

Hey....3% of something is better than nothing!
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I am 43, been selling Insurance since 1992..

 

[MedSuppPro]

At least I've got almost 4 years to watch it sink, IF what you say is true.

Hey....3% of something is better than nothing!
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I am 43, been selling Insurance since 1992..

Jack -- Welcome to the Forum! Hope you don't get busted...

Russ -- Why do you think that you have 4 years? I thought the loss ratio kicks in Jan 1st.

It's the insurance carriers that have < 3 - 4 years. Insurance carriers will add 30+ million government paid members and their stock will zoom. And so will their premiums and at that point the government will step in. For the small carriers or carriers not contributing to campaign coffers it will be consolidation time. Just like the Baby Bells! History lesson.

I know, I know, hit me... Frankie YIO!

But, looking into my crystal teleprompter it says; loss ratios and GI start "today" or um soon.

 

[Russ]

Jack -- Welcome to the Forum! Hope you don't get busted...

Russ -- Why do you think that you have 4 years? I thought the loss ratio kicks in Jan 1st.

It's the insurance carriers that have < 3 - 4 years. Insurance carriers will add 30+ million government paid members and their stock will zoom. And so will their premiums and at that point the government will step in. For the small carriers or carriers not contributing to campaign coffers it will be consolidation time. Just like the Baby Bells! History lesson.

I know, I know, hit me... Frankie YIO!

But, looking into my crystal teleprompter it says; loss ratios and GI start "today" or um soon.

3 to 4 months?

 

[The Brokerage Resource]

Medicare Supplements already have mandated loss ratios and I see nothing about that changing, did I miss something?