- 30,319
I've got the $68 Wellcare plan(no deductible). Trelegy runs me $47 a month until I hit the donut hole half way through the year.
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- Thread starter Northeast Agent
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At least you now only have to pay 25% in the donut hole.
- 30,319
But that a lot more than $47(($164.43).
You sure about that?
Seems like there was a discussion in another thread about their lifetime commission. As I recall the flat fee becomes a % after 8 - 10 years . . . something like 3% . . . similar to what other carriers do but call them service fees.
- 4,200
I'm looking at a 2018 commission schedule (granted it's old, but they usually don't change the time period) and it looks like you might be right. I still come out ahead by 33% against a 3y fyc at 31%. And UHC and CSO basically bounce between each other... so it's not like the rate is going to be over the top different.
As Vic noted. It's hard to justify replacing UHC after 5-6 years if it's internal. Even externally, unless they're riding the MoO or BCBSMI or the like. The only thing I could think to flip them to is Aetna.. and CLIC and Ascendo are competing against each other.. it makes me nervous when two companies owned by the same entity are taking market share from one another.
I forgot MI is different from other states when it comes to commissions.
Most carriers in most states pay FYC for 7 years (Medigap) then switch to service fees. Doesn't sound bad until you find out the percentages are based on first year premium . . . so agents are not paid on rate increases.
If an agent wanted to maximize commissions, without regard to their client, they could put T65 on Medigap and ride it until the FYC ran out, then switch to MAPD. By then the client may have developed health issues that make the $0 premium unattractive from a cost standpoint as well of the managed care hassle.
Changing clients from one Medigap to another becomes more challenging after age 70 or so due to underwriting. I move about a dozen per year from one Medigap to another but it can be challenging.
And sometimes the savings isn't there even if they are healthy.
I just wrote the spouse (T65) of a client I have had for 9 years with the same company. I was about to pitch him on changing but then I ran rates. His current rate is competitive with the market . . . if I write his wife with the same company his rate drops 5% so no reason to change.
That is very unusual, but it happens.
Most carriers in most states pay FYC for 7 years (Medigap) then switch to service fees. Doesn't sound bad until you find out the percentages are based on first year premium . . . so agents are not paid on rate increases.
If an agent wanted to maximize commissions, without regard to their client, they could put T65 on Medigap and ride it until the FYC ran out, then switch to MAPD. By then the client may have developed health issues that make the $0 premium unattractive from a cost standpoint as well of the managed care hassle.
Changing clients from one Medigap to another becomes more challenging after age 70 or so due to underwriting. I move about a dozen per year from one Medigap to another but it can be challenging.
And sometimes the savings isn't there even if they are healthy.
I just wrote the spouse (T65) of a client I have had for 9 years with the same company. I was about to pitch him on changing but then I ran rates. His current rate is competitive with the market . . . if I write his wife with the same company his rate drops 5% so no reason to change.
That is very unusual, but it happens.
- 17,044
I would never consider a Community rated Med Sup. It never worked to their advantage. They start out paying too much in hopes the insurance company will just not Jack the rate up too much in the future. Nope! It never goes that way. When they do raise their rates it’s a huge rate increase and your clients are pissed because they always claim they thought they couldn’t get a rate increase.
- 6,983
Caveat, not an agent
Thanks for posting that. I have been considering New Era as a candidate for better rate stability than some others.
- 6,983
Based on my very limited perspective, that seems to be the case. For me, it does not seem like the common mantra of "just go ahead and buy the low rate now and I'll shop your rates each year and you can change in a year or two" does not seem like it might go as smoothly as the sales patter suggests.
