How Quickly Can Companies Change Rates After Supp Switch?

Apr 12, 2016

  1. KyleWelch
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    KyleWelch New Member

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    I know some companies advertise a 1 yr rate lock? Are there any laws or regulations on this?
     
  2. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    I'm not aware of any laws, so I'll say no. It more or less an industry standard, though I've seen a few with 6 months.
     
  3. somarco
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    somarco GA Medicare Expert

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    Pretty sure UHC/AARP only gives you 6 months before your rates can increase. BCBSGA says they can increase your rates any time they want.
     
    somarco, Apr 12, 2016
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  4. sman
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    sman Guru

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    I believe it's a state by state thing. In Georgia, if I'm not mistaken, the insured has to get a 60 day notice of a rate change. In regard to Bob's post about BCBSGA, that is how I found out about the 60-day rule. I wrote someone with a 12/1 effective date several years ago. BCBSGA had a rate increase in 1/1. The client got the rate increase in March I believe. They were notified by BCBS in late December of the rate change that would take place in March. Thus, they received 60 day notice.

    Some carriers will give a 12-month rate guarantee. But beyond that they reserve the right to change rates at any time as long as the insured is notified within the time the state requires.
     
    sman, Apr 12, 2016
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  5. Chazm
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    Chazm Guru

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    I know in FL with UHC there's no lock. I advise to all my clients that are just signing up at the end of the year that rate increases happen on Jan 1 so be on the lookout.
     
    Chazm, Apr 13, 2016
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  6. somarco
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    somarco GA Medicare Expert

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    They use April as their increase month in Georgia.
     
    somarco, Apr 13, 2016
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  7. TDFnCali
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    TDFnCali Guru

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    Same here....and I thought their 6mo lock was for all states.

    FL is weird tho, in more ways then 1, lol!
     
    TDFnCali, Apr 13, 2016
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  8. sman
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    sman Guru

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    It used to be January, but somehow got changed to April maybe 4-5 years ago. And as you've pointed out, they have a 6-month rate guarantee here. So someone enrolling with a January 1st effective date wouldn't experience the April rate change until July 1st (unless they paid an annual premium - then it would be at renewal).
     
    sman, Apr 13, 2016
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