Is It True?

[walleyeb1]

I had a marketer try to tell me that all med sup companies must refile their plans for 06/01/2010 and that all of the old books would be closed to new applicants. If a company didn't file new plans/rates they wouldn't be able to write new business. Clients in the old book could apply for the new plan if the rates were better but would have to go through underwriting.

 

[sman]

Sounds about right. Beginning 06/01/2010, carriers must offer "Modernized" plans and can no longer sell their "Standardized" plans. Many carriers have already filed their new plans with the states and can already sell them with a 06/01/2010 effective date.

The people on standardized plans will not have to switch and coverage will continue as normal, but the problem may be the fact that the pool of people on those plans will not increase due to no new enrollments in standardized plans and premiums may rise quicker than normal since no new premium dollars will be coming in on these plans.

I have yet to see a carrier state that people can switch from their standardized plan to a modernized plan without going through underwriting.

 

[G.Gordon]

Yep.

That's why all of my OE clients such as T65's with OE's that will extend beyond the 6/1/10 date are being told that I will probably encourage them to by a modernized plan with a 6/1/10 effective date when they become available. Reason: From what I've seen in other states they will be cheaper. The books that the current plans are paid from will be closed and premiums will go up sooner or later more so than the new book.

 

[Jessica Durphy]

Guess I'm a little confused.... what is this all about? Sorry to seem so dumbfounded

I know about the plans E, H, I, and J... being eliminated.. then a M and N, being added.... is that what ya'll are talking about?

As an agent, what do I have to do????

 

[DS4]

Plans E, H, I, and J will be eliminated as of June 1st, 2010.
Added will be M & N.

 

[G.Gordon]

Study.....

 

[Jessica Durphy]

Plans E, H, I, and J will be eliminated as of June 1st, 2010.
Added will be M & N.

guess I'm smart huh?!

LOL...
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Study.....

Yes sir!

 

[DS4]

I think you should be training other agents

 

[Jessica Durphy]

I think you should be training other agents

I think you may be onto something there

 

[G.Gordon]

As of 6/1 the modernized supps start getting sold. The current books of business companies have will be closed... we call this a dead pool. No new money going into that book. Claims losses get higher as people leave for the modernized plans. That's why all of my open enrollment 2/1, 3/1, 4/1, 5/1 clients will be advised to switch to a modernized plan 6/1.

It's beer'thirty.