How do you handle medigap price increases?

[DonP]

Def get to the point you need someone for things other then rewrites, My wife does a lot as far as lost cards, misbills, calling carriers for various things, just basic CS stuff, As well as mailing welcome letters, premium increase letters, this is a BIG deal saves a ton of time

Yes much of my time during AEP is Clients and a good amount of Referrals, I don't have much time for outbound marketing during AEP, I am going to try some inbound marketing this year

But thats not a big deal, I would rather spend time working clients, building relationships, and earning Referrals
Then pounding leads during AEP, and replacing lost clients that I could have kept, Also leads are not as easy as they were 4 or 5 years ago

I agree with this . Retaining a client is like getting a new one also possibly many referrals down the line . Had a lady text ne at 2 am last night . I responded this am and she thanked me for explaining things . She also thanked me for her handwritten birthday card . In the end it's all about relationships . That gets loyalty .

 

[Travis Price]

But thats not a big deal, I would rather spend time working clients, building relationships, and earning Referrals

Honestly, this is my favorite part of this job. The selling part is easy.. the lead part is the pita at times. At some point, you don't need as many new clients because your renewals are sustainable for income and rewrites/referrals.

I find that DSNP causes more headaches than +65 Medicare.. which I'm sure that's why most of us don't write it as a primary lead source.

 

[sshafran]

With a book of 1200 plus what % is med sup and what % is mapd ? My book is 1/2 that size and I'm getting bogged down big with 8-10 calls a week now . I think you said you hired and assistant . But an assistant can't do many things like rewrite apps and explain bill questions . There's so many things only a licensed agent can do . Many agents will flip a lot of clients to the next greatest plan during aep . I don't do that and won't . With mapd it's endless chasing the hottest plan .During aep if your reviewing even 15% of your clients plans I don't see how you'd have time to write hardly any new people . I think Kingdom says it best . During Aep she spends it all with existing customers for retention and writes plans during the yr .


Any time I see these you tube videos blasting how selling Medicare your off the hamster wheel with passive renewals for life I just want to slap them . Medicare is the most intensive customer service ins product by far . The product is used many times a month . With car ins you have a wreck on avg every 5-10 yrs maybe . With life ins you only here from them at death .

With a book of 1200 plus what % is med sup and what % is mapd ?
The percentage - good question. I've looked in the past but I'm unsure exactly right now. Probably 60/40.

I think you said you hired and assistant . But an assistant can't do many things like rewrite apps and explain bill questions .
I did. She is helping with all kinds of things that don't require a license. For example, it's 10:15am here and I have someone coming into the office at 11:00. On my desk is a quote sheet for him for Plan G and Plan N. Not only is it printed on my desk ready for me to go over with the prospect, but it's also saved and uploaded to his CRM file. I didn't touch it. She prepped it and printed it. Along with anything else I usually give a new person.

She does the referral letters... she handles some calls to carriers when needed... etc etc.

Many agents will flip a lot of clients to the next greatest plan during aep . I don't do that and won't .
Good call. I got pretty good at "well, we can look but the grass isn't always greener on the other side and, really, it's about 6 & 1/2 dozen or the other. If you're pretty happy with XYZ, and to me it looks about the same for next year - why don't we just keep things as-is."
Of course, if there is a compelling reason to switch, then be there for it.

Any time I see these you tube videos blasting how selling Medicare your off the hamster wheel with passive renewals for life I just want to slap them
Agreed, lol.

I'm using Medicare to buy real estate. I only have 10 units currently and need quite a bit more (I own a few outright, then I'm in partnerships on over a hundred but my ownership is about 10 units total).

Once I have enough real estate - I'll probably "wind down" Medicare and only answer the phone for current clients and maybe a referral if I'm feeling like it. I doubt I'll sell the book - I hear high multiples but realistically I think it's better to just sit on it and service the book until it wanes.

I think Medicare is a great - fantastic - business to build and build strong. But I think there needs to be an exit - for me, I'm hoping that Real estate can be the exit.

 

[DS4]

.During aep if your reviewing even 15% of your clients plans I don't see how you'd have time to write hardly any new people .

I live in a rural county of Ca. Some years, zero MAPD's to offer. Twice, Anthem pulled their MAPD with no other MAPD's to offer. The last time, I had about 120 Anthem MAPD's. Imagine the time suck to write 120 med supps, plus, 120 PDP's during AEP??? Did I make money? No, just saved clients. Did I write any new business this AEP, No.

 

[Travis Price]

I think Medicare is a great - fantastic - business to build and build strong. But I think there needs to be an exit - for me, I'm hoping that Real estate can be the exit.

This is the key that some people just don't get. It's why I diversify my income from the start. I take enough to pay taxes and expenses and invest the rest.

Especially concerning MAPD, your book is one bad year from being gone.

Becoming wealthy includes three things:

1) Having a job to pay your bills
2) Having a business to create extra income
3) Investing extra income for growth.

I'm a firm believer in hard assets vs paper ones.. Just because USD supply can always be inflated. Hard assets (especially scarce ones) cannot.

 

[Todd King]

This is what I always did/said while in the field:

"Sue Ellen, all of these Med Supp companies have increases. I, nor anyone else can tell you what the increases are going to be. Most of the time it is between 6-8%. While we don't like it, we put up with it. Now, every once in a while, a carrier will have a big increase...15% or more...heck, I've seen as high as 40%!

If this company has an increase like that, we need to look at finding something that is better for you and your pocket. The problem is, sometimes I know about the increase and sometimes the company won't notify me. However, they will always notify you.

With that being said, let's you and I make a deal right now. When you get notification from the company with a rate increase, if you think it's just too much, then please give me a call and we'll see about switching you to another company because I don't want you having to pay one more nickel than you have to! Deal?"

I never had a problem with re-writes as it extended the time that I would get paid AND most of the time it was actually more commission than I got on the original policy.

 

[Dave G]

Wow, whatever happened to offering your clients both advice and choice? Read all the above comments and surprised to see those with "take it or leave it" attitudes. There are advantages/disadvantages with every plan type....agents should focus on figuring out what the client wants and then helping them find it. This requires you to be knowledgeable and certified for all Medicare plan types: MAPD, MA, DSNP, PDP and Medigap.

Yes, it would also be helpful if carriers provided historical rate information. If you've worked in this market long enough, you should have your own. I save every Medigap rate sheet when released each year. And do tell Medigap clients to expect rate increases.

I built my business doing PDP reviews for all new clients and offer updates during AEP. This gives me a pretty good idea who is likely still insurable to shop Medigap plans. I prefer to keep them with the same carrier if possible, since their medical and claims history is already on file...less chance of later running into a claims issue from non-disclosed conditions on the app.

MAPD plans are great for some, not so great for others. Most of my clients have Original Medicare + Medigap + PDP. The PDP is where most people can end up in the wrong plan and paying more than they would with their most cost-effective plan. The drug coverage is where those thinking they "save money" with MAPD lose it out the back door with a more costly drug benefit inside the plan. There are usually 21 or more PDP plans in your region/state and there is often a plan yielding more drug cost savings vs. PDP imbedded in the MAPD plan they may be stuck with.

I also find few folks willing to give up existing doctor relationships for coverage in an MAPD plan. However, good candidates can be move-ins who need to find new providers anyway or no-brainers where their current providers are in the plan network.

The bottom line: Don't put your personal bias into the equation if you can help it. Be well informed and act as a trusted advisor, not a salesman.

 

[Todd King]

Dave, this was a conversation started about Med Supp price increases and how to handle that with your existing client. Therefore, we are assuming that, as their agent, we've already gone through all of that and determined that they are better off in a Med Supp.

Of course things can change and sometimes do, but we are not trying to muddy the waters of the basis of the thread with other products. Just addressing the Med Supps.

 

[Travis Price]

Yes, it would also be helpful if carriers provided historical rate information. If you've worked in this market long enough, you should have your own. I save every Medigap rate sheet when released each year. And do tell Medigap clients to expect rate increases

How?

What does past price increases do?

Non-age related increases are due to increased claims costs. So you show them the last 10 years of increases, and next year the increase is double that.

What then?

Past performance does not equate to future performance.

 

[ValeRosso]

A few carriers send rate adjustment emails alerting us to increases.

For those that do, I have a standard letter that goes out immediately with a business card.

Let's them know what the rate will be and when. It offers to review. I do remind them that if they do want to make a change they don't have to wait until October.

Some call in. Some don't. But they all get my card one more time... #referrals.

Thanks for the tip! Sounds like a great way to handle this for the future increases.

This is what I always did/said while in the field:

"Sue Ellen, all of these Med Supp companies have increases. I, nor anyone else can tell you what the increases are going to be. Most of the time it is between 6-8%. While we don't like it, we put up with it. Now, every once in a while, a carrier will have a big increase...15% or more...heck, I've seen as high as 40%!

If this company has an increase like that, we need to look at finding something that is better for you and your pocket. The problem is, sometimes I know about the increase and sometimes the company won't notify me. However, they will always notify you.

With that being said, let's you and I make a deal right now. When you get notification from the company with a rate increase, if you think it's just too much, then please give me a call and we'll see about switching you to another company because I don't want you having to pay one more nickel than you have to! Deal?"

I never had a problem with re-writes as it extended the time that I would get paid AND most of the time it was actually more commission than I got on the original policy.

Awesome, thank you for explaining how you take care of the increases. I'm definitely going to use this way of explaining things to the client...especially about asking them to call you if the increase is too much for them, that's just great!

Wow, whatever happened to offering your clients both advice and choice? Read all the above comments and surprised to see those with "take it or leave it" attitudes. There are advantages/disadvantages with every plan type....agents should focus on figuring out what the client wants and then helping them find it. This requires you to be knowledgeable and certified for all Medicare plan types: MAPD, MA, DSNP, PDP and Medigap.

Yes, it would also be helpful if carriers provided historical rate information. If you've worked in this market long enough, you should have your own. I save every Medigap rate sheet when released each year. And do tell Medigap clients to expect rate increases.

I built my business doing PDP reviews for all new clients and offer updates during AEP. This gives me a pretty good idea who is likely still insurable to shop Medigap plans. I prefer to keep them with the same carrier if possible, since their medical and claims history is already on file...less chance of later running into a claims issue from non-disclosed conditions on the app.

MAPD plans are great for some, not so great for others. Most of my clients have Original Medicare + Medigap + PDP. The PDP is where most people can end up in the wrong plan and paying more than they would with their most cost-effective plan. The drug coverage is where those thinking they "save money" with MAPD lose it out the back door with a more costly drug benefit inside the plan. There are usually 21 or more PDP plans in your region/state and there is often a plan yielding more drug cost savings vs. PDP imbedded in the MAPD plan they may be stuck with.

I also find few folks willing to give up existing doctor relationships for coverage in an MAPD plan. However, good candidates can be move-ins who need to find new providers anyway or no-brainers where their current providers are in the plan network.

The bottom line: Don't put your personal bias into the equation if you can help it. Be well informed and act as a trusted advisor, not a salesman.

I think that's just how some people are. Several people on our team are basically zero tolerance on stuff like this. They will fire clients left and right, whereas I am more of a people pleaser for the most part. Thanks for your input!

How?

What does past price increases do?

Non-age related increases are due to increased claims costs. So you show them the last 10 years of increases, and next year the increase is double that.

What then?

Past performance does not equate to future performance.

Good point. I guess at minimum, you could maybe mention average increases historically but also include that its totally up to the company and any increases do not have to be inline with the averages.

Or, like a previous poster said, don't give any numbers like this, and instead just say the prices will increase as you get older. I'm guessing this will be fine for 95% of people, but the other 5% might press you much more about the amount of the increases specifically.