Health Reform and Med Supps

[insurance0707]

I somehow got on an email list that keeps asking me to fill out a survey for doctors. They keep offering me $50 gift certificates to respond. I thought this was an interesting email that I received today. I'm not a doctor and I don't play one on TV Here's there latest concerns...

[FONT=Arial, sans-serif]Pending Medicare Pay Cut NOT Addressed in Healthcare Bill[/FONT]
[FONT=Arial, sans-serif]Physicians* are discussing the implications of the pending 21.2% cut in Medicare reimbursement rates, which was not addressed in the healthcare reform bill that passed on 3/21/10. The following is a sampling of what your colleagues are saying:[/FONT]

[FONT=Arial, sans-serif]"What other low margin business can sustain a 21% cut in revenue and continue functioning? We will most likely decline Medicare patients, and I suspect that many others will follow."[/FONT]

[FONT=Arial, sans-serif]"If these cuts take effect, we should ask the federal government to commensurately cut the income tax rate to MDs who take Medicare, Medicaid & indigent patients."[/FONT]

[FONT=Arial, sans-serif]"Now may be the time for all physicians to rethink the issue of formal organization to stand up to the powers that be so as to be heard and have input rather than sit by and be dictated to."[/FONT]

[FONT=Arial, sans-serif]Take our survey and share your thoughts on this issue. Would you be forced to make significant changes to your practice if this reimbursement reduction takes place? Would you continue to participate in Medicare? What are the unintended consequences of this reduction?[/FONT]
_________________________________________________________________

Hey...we could also ask the federal government to cut our tax rates if we deal with Medicare patients.. that would solve the reduced commissions. Let's find out who there lawyer is (Rick/Greensky, I know I'm not as funny as you...but you've got to give me some props on this one)

 

[Jack C...]

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.

You have been in it longer than me, I have only been selling Medicare Supplements since 1992, so you have me beat by a few years..

I have seen my commissions cut before, and if you have been it it for 20 years then you have seen it too.

I think the Bill Stinks, I dont think we as a Nation (the tax payers) can afford it. And as mentioned before, I have zero to gain if what I have been told is true., and that is that the Bill applies to all private health insurance, including medicare supplement insurance.

The last person you should believe, is someone in your up line, that makes an override from you, as it would be in that persons best interest for you not to believe me, and to continue to make money off of you right up until the day the ship has sunk.

At this time, I am not saying the sky is falling, What I am saying is that if you sell the sky, then the price you will be paid for doing so, is going down (way down) once the rules kick in. I also have zero to gain for saying this, but believe what you want.

Facts:

1.) The new law does not exempt Medicare Supplements Insurance.

2.) The new Law requires all "private Health Insurance" plans to pay 80% to 85% of the collected premium back towards medical services.

3 ) The new Law applies to all "private Health Insurance".

4.) CMS classifies Medicare Supplement insurance as "private health Insurance"

5.) State Insurance Boards classifies Medicare Supplement insurance as "private health Insurance"


Interpret these facts any way that you want.


Jack C.

 

[captain94]

I found this article I will post it here to. If this is true and they lower my commission in 2011 I will not write 1 medsupp until 2013 after the ratio is gone and the companies re-adjust my commission.

Wonk Room Does A Higher Medical-Loss Ratio Reduce Insurer Profits?

 

[Frank Stastny]

I found this article I will post it here to. If this is true and they lower my commission in 2011 I will not write 1 medsupp until 2013 after the ratio is gone and the companies re-adjust my commission.

Wonk Room Does A Higher Medical-Loss Ratio Reduce Insurer Profits?

Although the article is very interesting you may have overlooked the subject or title of the article.
"How will reducing subsidies to Medicare Advantage plans affect me?"

I did not see anything in it that specifically addressed either Medicare Supplements or insurance agent commissions. I suggest that you do not throw away all of your applications unless you are planning on moving to Missouri.

 

[Jack C...]

I found this article I will post it here to. If this is true and they lower my commission in 2011 I will not write 1 medsupp until 2013 after the ratio is gone and the companies re-adjust my commission.

Wonk Room Does A Higher Medical-Loss Ratio Reduce Insurer Profits?

If after they cut the commissions come January 1, 2011, do you honestly think that come 2013 they will increase the commissions again , especially if that is when the "Insurance Exchanges" will be starting.

 

[newdirection]

I asked an insurance executive from a Medicare Supplement company about the 80% loss ratio and does it include Med Supps. This is his response:

At this point we really don't know if this will apply or when it will go into effect. If this does go through at some point, it will not be good for any insurance carrier. This in addition to the increased taxes they are trying to leave on companies is going to make it very difficult for all in the insurance business.

 

[Russ]

I asked an insurance executive from a Medicare Supplement company about the 80% loss ratio and does it include Med Supps. This is his response:

At this point we really don't know if this will apply or when it will go into effect. If this does go through at some point, it will not be good for any insurance carrier. This in addition to the increased taxes they are trying to leave on companies is going to make it very difficult for all in the insurance business.

That doesn't sound encouraging at all.

I think the ship has a hole it in, at this point.

 

[insurance0707]

Have any of your clients called you guys? I had a really nice email from a client asking will this put me out of business? She said, I'll pray for you.

I think everyone's jumping the gun on the commission issue, we'll see.

 

[Jack C...]

I asked an insurance executive from a Medicare Supplement company about the 80% loss ratio and does it include Med Supps. This is his response:

At this point we really don't know if this will apply or when it will go into effect. If this does go through at some point, it will not be good for any insurance carrier. This in addition to the increased taxes they are trying to leave on companies is going to make it very difficult for all in the insurance business.

Unless changes are made, and made fast, it is going through, as it is the new law.. But he is correct : "it will not be good"

Do not be surprised when we only get a 30 day advance notice that our commissions are going down. And since this 80% to 85% rule starts on 01/01/2011, expect that letter in the mail notifying you of your commission reduction in December of this year.

This is the reason why I posted all of what I had been told, was to give more of a warning to all of you, than the 30 day notice you can expect from the Insurance Company, and your up line.

Again, Here are the Facts:

1.) The new law does not exempt Medicare Supplements Insurance.

2.) The new Law requires all "private Health Insurance" plans to pay 80% to 85% of the collected premium back towards medical services.

3 ) The new Law applies to all "private Health Insurance".

4.) CMS classifies Medicare Supplement insurance as "private health Insurance"

5.) State Insurance Boards classifies Medicare Supplement insurance as "private health Insurance"


Interpret these facts any way that you want.


Jack C.

 

[captain94]

If after they cut the commissions come January 1, 2011, do you honestly think that come 2013 they will increase the commissions again , especially if that is when the "Insurance Exchanges" will be starting.

They will if sales of medsupps goes to hell. If they cut them and we continue to sell them no they will have no reason to up the commission again.
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Although the article is very interesting you may have overlooked the subject or title of the article.

"How will reducing subsidies to Medicare Advantage plans affect me?"

I did not see anything in it that specifically addressed either Medicare Supplements or insurance agent commissions. I suggest that you do not throw away all of your applications unless you are planning on moving to Missouri.

I dont see that anyware in the title...
I still need my apps but thanks for the offer, I have bills to pay right now. I hope you are right Frank. but I better start brushing up on F.E. a man without a plan B is a man without a plan. Just hope I dont have to use it..