How Many Med Supps in your portfolio is enough?

[Medicare Momma]

You have the same problem we (the FMO) do. With a few new Medicare Supplements entering the market each month, it's impossible to contract with each one, or even every 3rd one. At some point, I don't care how good their rates are, my brain is just overflowing and I'm tired. Can't lean. Another. Product.

Then when we pass on XYZ new carrier of the month, people may start asking for it. When YOU don't believe a product is necessary, do you pass on it or try to pick up all the contracts?

It is a never ending contracting mess. We hate to call agents with a new product because we hate to be called about a new product. At some point, can we all agree that chasing that new, shiny penny isn't worth our collective time?

 

[sshafran]

You have the same problem we (the FMO) do. With a few new Medicare Supplements entering the market each month, it's impossible to contract with each one, or even every 3rd one. At some point, I don't care how good their rates are, my brain is just overflowing and I'm tired. Can't lean. Another. Product.

Then when we pass on XYZ new carrier of the month, people may start asking for it. When YOU don't believe a product is necessary, do you pass on it or try to pick up all the contracts?

It is a never ending contracting mess. We hate to call agents with a new product because we hate to be called about a new product. At some point, can we all agree that chasing that new, shiny penny isn't worth our collective time?

Yes, I agree, the new shiny penny is not worth the time.

Here is the "criteria" that I've settled on (I don't have a downline - it's just me in my little home office...) - it works for me for now.

• I want to have the lowest price plan G in my target marketing zip code - regardless of if the carrier is 39 years old or 39 days old. Even if I don't sell them, I want to be able to say, "X is the lowest price - but they've been in business a month longer than you've been shopping for coverage...so, they may not reach the heights of stability being so new. For $4 more, we can get one of the larger companies."
  
  
• I want all of the major brands - and their new subsidiary of the month - we know who they are (aetna, cigna, uhc, bcbs, humana, moo). These will be the biggest sellers.
  
  
• Then, I want a few more for other reasons, underwriting needs, niche selling points like Thrivent, easy apps like Manhattan, etc.
  
  
• Finally, if a prospect asks for a carrier by name - I'll probably pick them up (had this happen with Transamerica where I sent the prospect the quote sheet for 23 options and she was disappointed that I didn't have Transamerica... so I picked them up...).

Once your list is set and CSG is set to quote those carriers that you hand-picked, then, ignore every single e-mail and phone call about new contracts for a while (maybe a year), then re-evaluate the market and plug any holes.

 

[MedicareMillionair]

I’ve not needed more than 3. I rotate different ones in and out over time/. Anymore gets to be a pain in the backside. The same ones usually turn up in the top results in any given geographic area.

 

[Chazm]

It’s not an issue in FL. Uhc has had the lowest rate increases with usually the lowest rate.
FMO’s call me all the time letting me know that XYZ company will have the best rates for males ages 66-67 or whatever. 2 years later they are way overpriced.
I really only write uhc and Humana for Med supps

 

[MedicareMillionair]

It’s not an issue in FL. Uhc has had the lowest rate increases with usually the lowest rate.
FMO’s call me all the time letting me know that XYZ company will have the best rates for males ages 66-67 or whatever. 2 years later they are way overpriced.
I really only write uhc and Humana for Med supps

How about United American?

 

[LostDollar]

Seems to me like there might be a difference in the number of carriers an agent and an fmo would want to be contracted with.

 

[sshafran]

Seems to me like there might be a difference in the number of carriers an agent and an fmo would want to be contracted with.

Brilliant!!

Not sure where we'd all be without your guiding hand...

 

[somarco]

We currently have about 50 Medigap carriers here. I am contracted with around a dozen. Regularly use 2 - 3. The rest might get a handful of apps a year if that.

My criteria used to be look for someone in my market for at least 5 year operating under the same name.

They also should be at least lower than 80% of the carriers.

That leaves me no one to write any more, so I had to relax my standards.

 

[Chazm]

How about United American?

Plan G is about $60/month more than uhc and $30/month more for plan N.

I picked them up about 2 years ago and wrote exactly 0