How do you handle medigap price increases?

[somarco]

I guess at minimum, you could maybe mention average increases historically

Historical increases are useless . . . even more so with carriers that "merry-go-round" downstream carriers every 3 - 4 years.

Carriers like MOO, United World, United of Omaha, Omaha Insurance Company and the probably have a few more I have missed.

Let's say carrier X enters a state with killer rates followed by 6% increases at renewal. Then X is retired from the state and followed by X2 with low rates. Now that X is no longer writing new business in the state the renewals go to 8%, then 10% then . . .

By the time carrier X5 comes along you have 4 other X carriers that have closed blocks and are handing out double digit rate increases.

How useful is it to look at historical rate increases especially when many of those carriers are no longer writing new business in your state?

 

[Travis Price]

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

The answer is easy for the 5%:

I don't know and anyone that tries to tell you they know the future is a liar.

 

[vic120]

The answer is easy for the 5%:

I don't know and anyone that tries to tell you they know the future is a liar.

I found this to be a lot easier than I thought early on, I found when you say this with confidence,

I might even say I look at rate history I can tell you in the last 5 years, However that does not mean there will not be a big jump next year, I have seen it with the best histories

All I can say is I will be here for you, and If we qualify I will get you a lower rate

They respect that a lot more then trying to make it sound like you know for sure it wont go up that much

and they make a better client long term as well

 

[Midlevel]

I'm thinking we should change the name of this forum to Medicare Supplement and then maybe start another one for agents that have an open mind and actually offer all products to their clients instead of cramming a Med Sup and PDP down their throat. Maybe we could call that one Senior Insurance Forum. This really is just the same 6 or 7 bitching about anything other then the almighty Med Sup. Has turned into a worthless forum. Same shit over and over again.

 

[ValeRosso]

Historical increases are useless . . . even more so with carriers that "merry-go-round" downstream carriers every 3 - 4 years.

Carriers like MOO, United World, United of Omaha, Omaha Insurance Company and the probably have a few more I have missed.

Let's say carrier X enters a state with killer rates followed by 6% increases at renewal. Then X is retired from the state and followed by X2 with low rates. Now that X is no longer writing new business in the state the renewals go to 8%, then 10% then . . .

By the time carrier X5 comes along you have 4 other X carriers that have closed blocks and are handing out double digit rate increases.

How useful is it to look at historical rate increases especially when many of those carriers are no longer writing new business in your state?

Oh yeah that doesn't make any sense then. So it is truly is useless to ponder over...so just start with the companies who have been in the market longer term and find something that fits their budget while mentioning these will typically increase every year as they age, and call it a day.

 

[ValeRosso]

The answer is easy for the 5%:

I don't know and anyone that tries to tell you they know the future is a liar.

I like that response!

I found this to be a lot easier than I thought early on, I found when you say this with confidence,

I might even say I look at rate history I can tell you in the last 5 years, However that does not mean there will not be a big jump next year, I have seen it with the best histories

All I can say is I will be here for you, and If we qualify I will get you a lower rate

They respect that a lot more then trying to make it sound like you know for sure it wont go up that much

and they make a better client long term as well

I agree, and letting them know you'll be there for them regardless is huge.

 

[somarco]

I rarely get the question any more. When it comes up I tell them there are only a handful of carriers who have written business in Georgia for 5 consecutive years.

My walk off line is . . . "If I could predict the future I would make more money predicting lottery numbers"

 

[goillini52]

I rarely get the question any more. When it comes up I tell them there are only a handful of carriers who have written business in Georgia for 5 consecutive years.

My walk off line is . . . "If I could predict the future I would make more money predicting lottery numbers"

I say that all Med Supp premiums go up every year and if anybody tells you differently, they're either lying to you or brand new and don't know what they're talking about.

I have seen a couple of times when a new company didn't raise premiums after the 1st year to gain a competitive edge....but made up for it the next year.

 

[Yagents]

I'm thinking we should change the name of this forum to Medicare Supplement and then maybe start another one for agents that have an open mind and actually offer all products to their clients instead of cramming a Med Sup and PDP down their throat. Maybe we could call that one Senior Insurance Forum. This really is just the same 6 or 7 bitching about anything other then the almighty Med Sup. Has turned into a worthless forum. Same shit over and over again.

I beg to differ buddy. I've been in this biz for 20 years, and part of this forum for over 10 years, and I continuously learn from many people on this forum, in this constantly changing business.

Even though I'm one of those "med supp" pushers, I'm always learning from those that do MAPD plans, and I'm open to listening to the other side. But, I am still sticking to my guns until I can be convinced otherwise.

We get to choose what we sell. Life agents fight over term vs whole life, health agents fight over HSA or copay plans, and on and on.

Same goes with politics or religion, if everyone stopped debating, it would be a boring world.

 

[Yagents]

In regards to historical rate increases, I actually use it in my presentation as why I don't sell other carriers.

Now, I realize that every state is different, but in AZ and FL, UHC has been king for rate consistency over the past decade. While I cringe a bit having all my eggs in one basket, it has paid off.

Over 700 clients with UHC med supp, and nobody has ever left to another carrier for lower pricing. Their block is large, stable, and with AARP looking over their shoulder, I doubt you would see any huge premium jump unless justified. I picked a horse to ride, and so far, it's been the right choice for me and my clients. Until things change, I've got to stay on that horse. Been burned by MOO and AZB in the past, can't be stupid twice.