Indiana to Idaho Med Supp Question

Aug 9, 2015

  1. HoosierLife
    Offline

    HoosierLife Want to write $20,000+ Guaranteed? bit.ly/learnfe

    Posts:
    5,972
    Likes Received:
    870
    State:
    Indiana
    I have a friend that's T 65. He wants to get a Medicare supplement but he is moving to Idaho in less than six months.

    How would that work? Would his rates be based on his Indiana ZIP Code when I sign him up, but change when he moves to Idaho?

    Should I place him with a company that has good rates in Idaho and Indiana or suggest he waits until he moves to Idaho?
     
  2. jacobtn
    Offline

    jacobtn Guru

    Posts:
    2,401
    Likes Received:
    30
    State:
    Tennessee
    Med supps do not change rates when the customer moves. They are permanently based on their zip at issue. However there are times when the person is better off buying another one if the area they moved to offers better rates.

    I would rewrite him in Idaho if it is less, but I would write him now in case he had a heart attack or major health issue which could cost him thousands in the meantime.
     
    jacobtn, Aug 9, 2015
    #2
  3. sman
    Offline

    sman Guru

    Posts:
    6,228
    Likes Received:
    252
    State:
    Georgia
    That's not true for all carriers.
     
    sman, Aug 9, 2015
    #3
  4. jacobtn
    Offline

    jacobtn Guru

    Posts:
    2,401
    Likes Received:
    30
    State:
    Tennessee
    Do you mind elaborating? That's not been my experience.
     
    jacobtn, Aug 9, 2015
    #4
  5. HoosierLife
    Offline

    HoosierLife Want to write $20,000+ Guaranteed? bit.ly/learnfe

    Posts:
    5,972
    Likes Received:
    870
    State:
    Indiana
    Well I will probably place him with CSI or Medico. Do either of those companies change rates if they move to a new zip?
     
  6. jacobtn
    Offline

    jacobtn Guru

    Posts:
    2,401
    Likes Received:
    30
    State:
    Tennessee
    I've not had a client move with Medico yet and never written CSI, so I wouldn't know. I can tell you though that it's definitely not typical and I personally don't know of any that do (Omaha/aetna/UHC are three that dont off the top of my head).
     
    jacobtn, Aug 9, 2015
    #6
  7. sshafran
    Offline

    sshafran Guru

    Posts:
    1,955
    Likes Received:
    857
    State:
    North Carolina
    I had a similar situation. If memory serves me right, the carrier adjusted premium to the new zip code when they moved...

    When shopping for them, I just told them we'd find a carrier competitive in both zip codes.

    I think it was CSI, too, who said rate adjustments would be based on new zip. Don't quote me on it though... it's still the weekend :)
     
  8. WCMason
    Offline

    WCMason Guru

    Posts:
    2,158
    Likes Received:
    329
    State:
    Colorado
    It does depend on carrier. I had a MoO client move to a new state and her premium was adjusted--upward--to the new zip. I have had many with Aetna CLI relocate and all of them have kept the price they got at issue. In most cases their premium would have gone up if they would have been adjusted, so Aetna's policy helped them. In a couple of cases the premium would have been lower in the zip, so I rewrote them as underwritten to get the new rate.

    I had one recent T65 case where the client was moving to a new, more expensive, state in July, but not turning 65 until October. Not sure whether I could write her in June and get the lower rate with Aetna given that she'd be in her new state when it took effect, I called agent services. They had no problem with an issued but not yet in force policy keeping the lower rate.

    I am contracted with Medico but never wrote a med supp for them, and not contracted with CSI, so can't be helpful with these specific carriers.
     
    WCMason, Aug 10, 2015
    #8
  9. sman
    Offline

    sman Guru

    Posts:
    6,228
    Likes Received:
    252
    State:
    Georgia
    Well, you're wrong on at least two of those. If MoO offers coverage in the new state the person moves to, then rates will adjust to the new zip code. Same for UHC (AARP). I have this happen on three occasions with MoO and two with UHC.

    I would think that someone who recruits other agents would know this stuff. Or at least they should.

    ----------

    I had this come up with CLI where the client moved to a lower rated zip code within the same state. CLI said he'd have to complete a new app in order to get the lower rate.
     
    sman, Aug 10, 2015
    #9
  10. WCMason
    Offline

    WCMason Guru

    Posts:
    2,158
    Likes Received:
    329
    State:
    Colorado
    Agree on Mutual. Rate changes on move. On Aetna it sounds like I didn't say it well. Like you, I have had to rewrite cases where the client moves to a lower premium zip to get the lower premium.
     
    WCMason, Aug 10, 2015
    #10
Loading...