Health Reform and Med Supps

[Jack C...]

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

I hope I am wrong, believe me, but it is obvious from Craig's reply to you that he is not certain on the new 80% to 85% rule, as he wrote that he " was not sure if the loss ratio applied to polices outside the exchange" But if you read the Bill, nowhere in that paragraph where it discusses the 80% and 85% loss ratio, does it mention it is only for plans inside the "exchange" and nowhere in the entire Bill does it mention that it doesnt apply to Medicare Supplements.

I hope I am wrong, believe me, but from what I have read, and from what I have been told by people who understand Insurance Laws better than me, it is worded to apply to all private health Plans, including medicare supplements.
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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.

What on earth are you smoking ? and who is starting a rumor ?

I have nothing to gain by any of this being true, in fact I have much to lose, just as you do.

It appears from the wording of the Bill, that it applies to all private health plans, but if you think otherwise, please post the part of the Bill that says Medicare supplement insurance plans are exempt ? Or that the new 80% to 85% rule only applies to under aged 65 private health plans ?

 

[Russ]

I hope I am wrong, believe me, but it is obvious from Craig's reply to you that he is not certain on the new 80% to 85% rule, as he wrote that he " was not sure if the loss ratio applied to polices outside the exchange" But if you read the Bill, nowhere in that paragraph where it discusses the 80% and 85% loss ratio, does it mention it is only for plans inside the "exchange" and nowhere in the entire Bill does it mention that it doesnt apply to Medicare Supplements.

I hope I am wrong, believe me, but from what I have read, and from what I have been told by people who understand Insurance Laws better than me, it is worded to apply to all private health Plans, including medicare supplements.
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What on earth are you smoking ? and who is starting a rumor ?

I have nothing to gain by any of this being true, in fact I have much to lose, just as you do.

It appears from the wording of the Bill, that it applies to all private health plans, but if you think otherwise, please post the part of the Bill that says Medicare supplement insurance plans are exempt ? Or that the new 80% to 85% rule only applies to under aged 65 private health plans ?

For your sake and anyone that writes med-supps, I hope what you were told and your beliefs of it were wrong.

Was anyone aware of this 80-85% loss ratio requirement within this bill? Anyone...as in...the insurance industry? I don't recall reading a single article on this in the last few months as it pertains to what agents may lose as compensation and I've tried to keep up with the health care reform situation.

 

[MedSuppPro]

from Craig's reply to you that he is not certain on the new 80% to 85% rule, as he wrote that he " was not sure if the loss ratio applied to polices outside the exchange" But if you read the Bill, nowhere in that paragraph where it discusses the 80% and 85% loss ratio, does it mention it is only for plans inside the "exchange" and nowhere in the entire Bill does it mention that it doesnt apply to Medicare Supplements.

Does anyone believe that Kathleen Sebelius and crew is committed to preserving your commission check? Does anyone seriously believe that MedSupps are not part of the program. Anyone got money to put on the table... I'll even bet ya a lamb chop... or a chicken!

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[Frank Stastny]

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.

Bob, what makes you believe that you will not be able to sell the new standardized plans in GA? Who every you are talking to does not know what they are talking about.

MOO's rates for the new standardized plans were approved in GA today. You can begin selling them now.

The other states that were approved today were AZ, KY, NC, ND, NM, OR & SC.
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Does anyone believe that Kathleen Sebelius and crew is committed to preserving your commission check? Does anyone seriously believe that MedSupps are not part of the program. Anyone got money to put on the table... I'll even bet ya a lamb chop... or a chicken!

YouTube - HHS Secretary Talks Reform​

Where in that video is the subject even remotely touched on? I seriously believe that Med Supps are not a part of the program and that our commissions are not going to "tank".

All I heard is a bunch or political rhetoric. Nothing one could hang their hat on.

Give me a call and we will settle on a gentleman's wager. Be sure to make it easy on yourself.

 

[MedSuppPro]

Ok Ok I get your point! The sky isn't falling. And goats don't make good lamb chops! Did you get into the scotch again?

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[Frank Stastny]

Did you get into the scotch again?

Not yet but that is a damn good suggestion, thanks.

Since you mentioned goats, as a side note one of my does/nannies had twins about 4pm today. In the "rural world" that is pretty exciting. Two females, mother and daughters are "doin a hundred".

 

[jamesflou]

If McDonalds starts offering health care for all their employees does that mean they will eliminate the dollar men?

 

[TXINSURANCE]

1/1/11

d day

In case anyone cares Al Franken and Jay Rockefeller appear to be the primary persons involved with MLR

I read the bill and it wasn't my impression this applied to med supp but obviously I could be wrong.

 

[insurance0707]

Jack C, you've had 12 posts on this site...look at Frank, Russ and some other veterans that have been around awhile. I've been in this business 20 years and these rumors have popped up from time to time. We have dealt with government run health care for quite sometime. I'm happy for the people that are under 65 that are getting some help. I think once the dust settles and people see that things aren't as dire as the lobbiests, insurance companies, lawyers, doctors, etc make it out to that the changes that have come through are not a bad thing. They are things that needed to be done. Even the pharmacutical companies caved and will be helping seniors in the doughnut hole next year by paying 50% of the namebrands through the doughnut hole.....something that doesn't cost the taxpayers, it's the government saying to private industry, enough. Chip in, lower your costs. This costs taxpayer nothing! It's like our government has gotten some balls and calling in the outragous profits that the insurance companies, pharmacutical companies, doctors, lawyers etc. etc. are making.

 

[MedSuppPro]

one of my does/nannies had twins about 4pm today.

Congrats!!! Reason enough to get that bottle down!

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OK, here are some numbers to put in that corncob pipe.

A sloppy carrier can administer a MedSupp block for just under 10%. So if the individual loss ratio is 80% (for every dollar 80 cents are paid out on claims), then we should land at about 10% commissions.

I can survive at 10% levelized lifetime commissions. So, no the sky is not falling. I can survive and with all the more reasons to go out and replace the old standardized block. And yes, I believe the carriers will want independent agents like us, because, they can afford 10% commissions. I doubt they can afford a captive in-house sales force for 10%.

So all we have here is a rumor and sometimes rumors are true. I could see this one being true.