I have been "selling" mainly Medicare Advantage for several years now and I am trying to market and shift more towards selling Med Supps. One of my few Med Supp members is 80 years old and he has Anthem's Plan F and he pays around $310/month. Several companies offer the High Deductible Plan F for between $60-$70/month, which comes out to $850/year. I sold his wife their Part D plan and I became their Anthem AOR about 1 year ago. I used to think the these plans, the member had to pay all Medicare covered costs up to the annual deductible, which is $2,240 this year, but the out of pocket costs are only for the typical Part A and Part B expenses, like the Part A hospital deductible, etc. The member has had the supplement for 15 years and his only claims have been for it for doctor office co pays. So if he switches to the High Deductible Plan F, the worst case scenario for him would be the annual premium of $840 added to the $2,240 annual deductible, which amounts to approx $3,100 saving him $500/year. If he continutes to stay healthy, his savings would be $2,000-$3,000 per year. Paying the deductible is not an issue, as he previously was not interested in shopping for a less expensive Plan F with another carrier. Am I mistaken, or is the High Deductible Plan F a good option for seniors that have no problem self insuring for the annual deductible of $2,240? I know United American markets the High Deductible Plan, which other carriers have good marketing materials for this option?
Hi Deductible Plan F vs Plan F, or other Med Supps
- Thread starter timeflies
- Start date
- 6,458
I am not an agent.
I am a 73 year old holder of an HDF plan which I first purchased last year at age 72.
The HDF deductible amount is a significant expenditure for me.
In my personal opinion the course of action which you described would not be a wise one for your client. I think you have described a scenario in which possible regret over unwise past actions are causing one to take unwise future actions.
Starting at age 72, I thought I would hold the HDF for 15 years and my guesses about claim levels the last 5 years (82 to 87) were pretty iffy.
I was just thinking about this issue (plan F for wealthy people) last night while I was being unable to sleep. It seems to me that one way a wealthy client could look at at Plan F costs is as part of the overall wealth management costs they incur from professionals like Accountants, Attorneys, Investment Advisors and the like; leaving the client free to pursue retirement lifestyle activities.
Just my opinion.
Agents will have to comment on the "best" HDF carrier.
I am a 73 year old holder of an HDF plan which I first purchased last year at age 72.
The HDF deductible amount is a significant expenditure for me.
In my personal opinion the course of action which you described would not be a wise one for your client. I think you have described a scenario in which possible regret over unwise past actions are causing one to take unwise future actions.
Starting at age 72, I thought I would hold the HDF for 15 years and my guesses about claim levels the last 5 years (82 to 87) were pretty iffy.
I was just thinking about this issue (plan F for wealthy people) last night while I was being unable to sleep. It seems to me that one way a wealthy client could look at at Plan F costs is as part of the overall wealth management costs they incur from professionals like Accountants, Attorneys, Investment Advisors and the like; leaving the client free to pursue retirement lifestyle activities.
Just my opinion.
Agents will have to comment on the "best" HDF carrier.
- Thread starter
- #4
only If he stays healthy & If he does not stay healthy he could get stuck
$150 per month savings nearly 2K per year without adding all that risk I would say is a much better option, Unless he is big on gambling
- 29,488
On top of what Vic said, the older he gets, the more likely that his health will deteriorate, which will make it harder for him to be able to qualify to switch down the road. I agree switch him to Plag G and he'll still almost cut hs current premium in 1/2.
Give him a choice.
"Which is more appealing? $150 month and $183 (2018) exposure or $70/month and $2240?"
When I have someone looking for HDF I default to showing N and that is what they end up buying most of the time. At 65 we have N plans around $100/mo and $60 or so for HDF. For an extrat $40 - $50/month they reduce OOP from $2200+ to less than $200.
If you only sell based on premium you are missing an opportunity to educate your client and present an option that is more appealing.
Along with everything else that has been advised, it sounds like this guy has Blue Brain. In other words, he's probably been with BCBS for many years (probably even before retirement). If he does have Blue Brain that just means that he is actually afraid to use another company. This client needs an education very badly!
- 1,452
My insurance plan is $280/month, and I have a 3K deductible. It sounds like at age 80, this guy's options for plans are better than what I have now. What a deal!
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