Health Reform and Med Supps

[Professor Leads]

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.

 

[medx]

Interesting

Medicare Insurance supplement insurance resource website and Medicare supplement Insurance Benifits website
American Seniors Insurance
www.americanseniors.com (American Seniors - Medicare Supplement Insurance Quotes)

www.AmericanSeniors.com
Medicare supplemental Insurance answers

National Medicare Supplements
medicare supplemental insurance resource
Get answers about medigap plans in your state
www.nationalmedicaresupplements.com
National Medicare Supplements

Medicare Information and Medicare supplement Insurance



Medicare Supplement Insurance Quotes - Compare Plans Online medicare supplements

American Seniors - Medicare Supplement Insurance Quotes medicare supplement insurance

 

[retread]

The timeline for the MLRs are 1/1/11, and amount is 85% for large group and 80% for individual and small group.

Since Medicare is individual health insurance I take it that the 80% MLR will be the rule. The problem I have is "what is the current MLR average of the Med Supps?" Someone posted they think it is currently 60% or so. IF this is correct, then carriers will have to adjust to a 20% loss of net. Not only will this mean layoffs and other cuts, but there is every good reason to believe agent commissions will be reduced.

I don't look at this scenario as "the sky is falling"... I say to be forewarned is to be forearmed. I am thinking of what I must do to prepare. I don't intend to go forward whistlin' in the dark!

 

[MedSuppPro]

After Pres O tells the crowd that the sky isn't falling (Chicken Little Theme), at the 2:38 min mark, a person faints when Pres O discloses to the crowd: "So does that mean it will finely solve all our heath-care problems that we have...NO"

​

I wish people would stop all this fainting. I've never seen so many fainter's.

​

Finally at the 9:33 min mark Pres 0 describes senior benefits:
"Despite what some people have said we will not be cutting your GUARANTEED benefits"
What are the Medicare "GUARANTEED benefits"? ​

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"what is the current MLR average of the Med Supps?"

Currently, MedSupp carriers file plans with 65% -75% MLR. However, I see many older plan renewals running in the 80's and 90's and a few over 100%. This is were the rubber meets the road!

This is why I posted two weeks ago #11 on Ritters top ten 2010 list should be REINSURANCE. Imagine your a MedSupp reinsurance carrier and now your looking at three interconnected issues: Guaranteed loss ratio's at 80%, Guaranteed Renewable coverage, and Guarantee Issue.

 

[azmedsupagent]

Where is it written that the MLR has to be 85% for Medicare Supplements? I read information that stipulates 80% for IFP, 85% for group, as well as 85% for MA, but no mention of Supplements. Are supplements included in the individual market because I thought that would be separate.

Does anybody know where to find information (calculations, models, etc.) on how the carriers normally calculate the MLR? Are we talking about the life of a policy or 1st year claims,etc.?

J.R.

This is exactly what I was thinking. A medicare supplement is not a primary individual insurance plan, its just an optional secondary supplemental insurance. I would assume that because of this med supps wouldn't be subject to the same regualtions as advantage plans and other under medicare age policies which act as a primary insurance. My thought is that the supplements will not be subject to the GI provision because medicare is thier primary and is already GI.
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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.

Exactly! Please do find another type insurance to sell! The sky is falling everyone get out while you can

 

[Medicareguy]

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.

You are probably right. Dems don't want anybody making money...even though state require claims reserves and public options do not have them. Get ready, the Wild Wild West is coming to an end. Don't put all your eggs in one basket, or become a direct rep with a good company who does state and federal claims processing.