Health Reform and Med Supps

[Jack C...]

Have you seen it in writing?

Didn't think so...

G. Gordon,
This is from the actual Bill that Obama just signed into Law.

from: White House dot Gov /blog/2010/03/23/whats-health-care-bill

• Starting January 1, 2011, insurers in the individual and small group market will be required to spend 80 percent of their premium dollars on medical services. Insurers in the large group market will be required to spend 85 percent of their premium dollars on medical services. Any insurers who don't meet those thresholds will be required to provide rebates to their policyholders.

The reform is not age specific, it refers to all Health Insurance, which is what a medicare supplement is.

 

[G.Gordon]

I read that too, but it isn't talking about medicare supplements. Nice try. Post the whole context next time.

 

[Jack C...]

I read that too, but it isn't talking about medicare supplements. Nice try. Post the whole context next time.

The new Law covers private Health Insurance Plans, .The reform is not age specific, it refers to all Health Insurance, which is what a medicare supplement is.

By the way, what is with your attitude ?

 

[G.Gordon]

But but but... medicare supplements are not seen as primary health plans. They are secondary to medicare.

You may be right... we'll see. I'm golden either way.

 

[Jack C...]

The New Law has no distinction between "primary" or "secondary" in regards to the 80% to 85 % rule, It applies to all private health Insurance Plans.(which includes Medicare Supplements)

 

[Russ]

Russ,
It is going to 85%, it is the new law, the only question is how soon.
And the wording is that "85% of the collected premium must be paid back in actual claims".
So if only 15% of the collected premium can be kept as profit (which is the new law) do you honestly think the insurance company will pass 2/3 of that to the Agent.? The answer is NO!

I repeat, You can look to be getting 5% at the most, Which will be 1/3 of the profits.

I was just thinking about this as I took a drive. I agree with you, based on what you're saying..... I think it will be around 5%. A $200 a month premium, you'll make $120 a year on it. A $150 a month premium you'll make $75 on it.

 

[Bob_The_Insurance_Guy]

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.


Frank, I don't agree that, in any way the sky is falling. Plan N sounds great - if you are selling in one of the states that is getting it. For those of us who won't be getting it any time soon, we've just been sent to the proctologist's office.

It is my belief, and hope, that Medicare Advantage Plans remain the "Network Based" Medicare option to Medicare Supplements for those who are stuck in the middle - earn too much to qualify for Medicaid, earn to little to pay $160 - $192 a month for a Med Supp.

 

[Russ]

G. Gordon,
This is from the actual Bill that Obama just signed into Law.

from: White House dot Gov /blog/2010/03/23/whats-health-care-bill

• Starting January 1, 2011, insurers in the individual and small group market will be required to spend 80 percent of their premium dollars on medical services. Insurers in the large group market will be required to spend 85 percent of their premium dollars on medical services. Any insurers who don't meet those thresholds will be required to provide rebates to their policyholders.

The reform is not age specific, it refers to all Health Insurance, which is what a medicare supplement is.

Reading the above in bold, med-supps are individual policies, so the loss ratio should be at 80%.

 

[Frank Stastny]

The sky is not falling and shame on those who are starting that rumor.

The new reform bill does not apply to Med Supps.

This is a classic case where a little information can be a very dangerous thing.

I already know that there are those who will say that I don't know what I'm talking about and want to argue the point, I'm good with that. So to those who want to believe that the sky really is falling let me support those rumors and suggest that they leave the Med Supp market. All they will accomplish is to give me more opportunity to make a lot more money and do it without so much "competition".

Med Supp commissions are not going down the toilet. I'm looking at the sky as I type this and it is still where it is suppose to be.

 

[Russ]

I went on Craig Ritter's blog and they talk about the same thing Jack C posted above...Text of Senate Health Care Reform Bill and Reconciliation Bill Ritter Insurance Marketing

I posed the question on the blog to see if it does pertain to med-supps.
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The sky is not falling and shame on those who are starting that rumor.

The new reform bill does not apply to Med Supps.

This is a classic case where a little information can be a very dangerous thing.

I already know that there are those who will say that I don't know what I'm talking about and want to argue the point, I'm good with that. So to those who want to believe that the sky really is falling let me support those rumors and suggest that they leave the Med Supp market. All they will accomplish is to give me more opportunity to make a lot more money and do it without so much "competition".

Med Supp commissions are not going down the toilet. I'm looking at the sky as I type this and it is still where it is suppose to be.

You may be correct. Craig answered me saying "he's heard nothing of it applying to med-supps."