How do you handle medigap price increases?

[ValeRosso]

Several of the clients I signed up with medigap are getting their premiums increased, average $20 a month. Admittedly I was very new and these were the first policies I completed, so I didn't tell them to expect this much of an increase (I told them a few percent a year, but several are getting double digit increase). Now I tell people to expect price increases yearly, but I don't give a percentage anymore.

I'm planning on calling and informing these clients of price the increases, so how should I handle this in the best way? See if they want to try and get approved for a different company and or plan (if they can pass UW)? How do you handle these when they happen? Any tips are appreciated!

 

[T Sparks]

Several of the clients I signed up with medigap are getting their premiums increased, average $20 a month. Admittedly I was very new and these were the first policies I completed, so I didn't tell them to expect this much of an increase (I told them a few percent a year, but several are getting double digit increase). Now I tell people to expect price increases yearly, but I don't give a percentage anymore.

I'm planning on calling and informing these clients of price the increases, so how should I handle this in the best way? See if they want to try and get approved for a different company and or plan (if they can pass UW)? How do you handle these when they happen? Any tips are appreciated!

After 25yrs of dealing with increases and issues with supp...PDP being the biggest ...I had to bite the bullet.

MA-PD because if you don't someone else will for you. SO, now 7yrs into all MA-PD ...Wish I would have done so sooner. Good luck.

 

[somarco]

FWIW there are a few areas where I never speculate with regard to insurance, and Medigap in particular.

I never speculate on future rate increases nor do I give "historical" increase patterns.

Also never guess if a claim will be approved, or paid, or how much they will pay OOP for their claims.

Either or both of those are situations where you are begging for complaints.

I also never offer an opinion on underwriting approval.

For that matter, I rarely volunteer information on rates, underwriting and claims but do my best to honestly answer questions in a way that is non-committal.

If other agents want to speculate on these items you can't stop them. When pressed, I say I don't have enough E&O coverage to give specific answers. If they want to go with another agent that is willing to lie to them they deserve what they get.

Your job is to do your best to answer questions, provide good advice and help them make a decision on the type of coverage they want and can afford.

 

[Midlevel]

You show them the lowest G plan you have in their zip code, in my case show them a Medica Cost Plan, which I can sell year around, and tell them you can reevaluate other options come October. Just make sure they know you have plenty of other options and no need to go looking somewhere else. If I ever see an increase that is double digits I always make sure to call them and let them know there are other options available before they even get the letter. Otherwise, the letter you are going to get is from the insurance company saying the client has requested to be terminated on 8/1/22. Some people will bail for a $5/month savings and some could care a less if it goes up $20/month.

 

[T Sparks]

You show them the lowest G plan you have in their zip code, in my case show them a Medica Cost Plan, which I can sell year around, and tell them you can reevaluate other options come October. Just make sure they know you have plenty of other options and no need to go looking somewhere else. If I ever see an increase that is double digits I always make sure to call them and let them know there are other options available before they even get the letter. Otherwise, the letter you are going to get is from the insurance company saying the client has requested to be terminated on 8/1/22. Some people will bail for a $5/month savings and some could care a less if it goes up $20/month.

Problem is...

2-3yrs later you are back at square one.

If I were to every write another med supp, it would be UHC/AARP
they will stick forever.

Other problem is once the book is big enough, there is not enough time to re-evaluate. So, what I have learned is that it is a-ok to let those go that do not want to stay. They will wear you down looking to save $5-$7.00 I do not have time for people like that.

 

[T Sparks]

FWIW there are a few areas where I never speculate with regard to insurance, and Medigap in particular.

I never speculate on future rate increases nor do I give "historical" increase patterns.

Also never guess if a claim will be approved, or paid, or how much they will pay OOP for their claims.

Either or both of those are situations where you are begging for complaints.

I also never offer an opinion on underwriting approval.

For that matter, I rarely volunteer information on rates, underwriting and claims but do my best to honestly answer questions in a way that is non-committal.

If other agents want to speculate on these items you can't stop them. When pressed, I say I don't have enough E&O coverage to give specific answers. If they want to go with another agent that is willing to lie to them they deserve what they get.

Your job is to do your best to answer questions, provide good advice and help them make a decision on the type of coverage they want and can afford.

Excellent Advising.

 

[ValeRosso]

After 25yrs of dealing with increases and issues with supp...PDP being the biggest ...I had to bite the bullet.

MA-PD because if you don't someone else will for you. SO, now 7yrs into all MA-PD ...Wish I would have done so sooner. Good luck.

I appreciate that T Sparks..I can definitely see what you mean especially with the PDP headaches Ive already dealt with.

If you don't mind, what is your approach for converting clients from supp to MAPD?

You show them the lowest G plan you have in their zip code, in my case show them a Medica Cost Plan, which I can sell year around, and tell them you can reevaluate other options come October. Just make sure they know you have plenty of other options and no need to go looking somewhere else. If I ever see an increase that is double digits I always make sure to call them and let them know there are other options available before they even get the letter. Otherwise, the letter you are going to get is from the insurance company saying the client has requested to be terminated on 8/1/22. Some people will bail for a $5/month savings and some could care a less if it goes up $20/month.

Thanks for the advice. A lot of these are F plans, so I was thinking about showing them G plans like you mentioned. I definitely don't want to play guessing games who will and will not tolerate these larger increases!

FWIW there are a few areas where I never speculate with regard to insurance, and Medigap in particular.

I never speculate on future rate increases nor do I give "historical" increase patterns.

Also never guess if a claim will be approved, or paid, or how much they will pay OOP for their claims.

Either or both of those are situations where you are begging for complaints.

I also never offer an opinion on underwriting approval.

For that matter, I rarely volunteer information on rates, underwriting and claims but do my best to honestly answer questions in a way that is non-committal.

If other agents want to speculate on these items you can't stop them. When pressed, I say I don't have enough E&O coverage to give specific answers. If they want to go with another agent that is willing to lie to them they deserve what they get.

Your job is to do your best to answer questions, provide good advice and help them make a decision on the type of coverage they want and can afford.

Gold advice, I wish I had this when I first started. I'm going to start doing the same, because I can see where things can go south pretty quickly, and Ive already made these mistakes telling people things I shouldn't have. It was more about me wanting to get them into a policy when it shouldn't have been.

I'm gonna start using that "I don't have enough liability coverage to give you specific answers" line as well.

 

[T Sparks]

I appreciate that T Sparks..I can definitely see what you mean especially with the PDP headaches Ive already dealt with.

If you don't mind, what is your approach for converting clients from supp to MAPD?

Just be upfront and honest...

Let them know that 1st off there is not a perfect plan, Tell them that these companies come in with a low price at age 65 and then once they got you, they increase the rates every year or so, and before you know it the rates will double, typically every 7-10 yrs. Ask them, do you want to spend roughly $30,000(age 65-80) in premiums having to shop this every 3yrs, or would you like to have an MA-PD plan that is FREE (Joking} No seriously most people should come out ahead even if they met the MOOP 3-4 times during there lifetime. And hey, here is a bonus...you will never have to sift through another PDP again. But seriously I got so tired of an FMO'S coming to me with the next best MedSupp...the list is endless. But if they want to stay with MedSupp let them...they will eventually call you or go elsewhere.

 

[Travis Price]

You show them the lowest G plan you have in their zip code, in my case show them a Medica Cost Plan, which I can sell year around, and tell them you can reevaluate other options come October. Just make sure they know you have plenty of other options and no need to go looking somewhere else. If I ever see an increase that is double digits I always make sure to call them and let them know there are other options available before they even get the letter. Otherwise, the letter you are going to get is from the insurance company saying the client has requested to be terminated on 8/1/22. Some people will bail for a $5/month savings and some could care a less if it goes up $20/month.

Okay, not against flipping people, but I don't do by lowest price.. that means it's usually really new in the market (or under a subsidiary.) I do the ones that have been around awhile and are consistently low over different age points.

Just my opinion.

 

[vic120]

Problem is...

2-3yrs later you are back at square one.

If I were to every write another med supp, it would be UHC/AARP
they will stick forever.

Other problem is once the book is big enough, there is not enough time to re-evaluate. So, what I have learned is that it is a-ok to let those go that do not want to stay. They will wear you down looking to save $5-$7.00 I do not have time for people like that.

That's interesting, I wonder why some of mine have gone up over $250 or $300 a month

The ones that were stuck on the NAME

They do however have great premium stability in FL,MI,NJ and NY though, CA I believe too but I stay far away from CA now