It Does Not Look Good for Agents Selling Medicare Supplements.

[Jack C...]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I wish we could all wake up tomorrow and find this to be a dream. But, JackC is spot on. And yes we need to continue this conversation...

You and Me both.

 

[Russ]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Q & A from CNN about health care reform......Updated: Answers to your questions on health care law - CNN.com

Question: I am on a Blue Cross Blue Shield PPO plan where I pay $252 now. It has been increasing every year, and I may have been to the doctor probably once or twice a year for physical. I do not smoke and am in perfect health, but every year for some reason, my they keep raising my insurance costs. With the new reform, are they going to have some checks and balance on these companies, who before did not have to answer to anyone? Or can I change my insurance to a government-run cheaper insurance?
Answer: Beginning in 2011, companies that spend more than a specified portion of premiums on administrative costs and profits must give a rebate to enrollees. In other words, large insurance companies will need to give rebates if they spend less than 85 percent of money from enrollees on medical costs. In the individual market, that share is 80 percent. Also, the health care exchanges could reject premium increases that insurers propose if they think they are too high.
In 2014, on the individual market, you can buy your own insurance through the exchanges if you do not have health insurance through your employer, or through Medicare or Medicaid. These exchanges are supposed to provide plans that are as good as employer-based plans, which generally have good benefits. If you do have employer-based coverage, however, and don't spend more than 9.5 percent of your income on premiums and the plan covers at least 60 percent of medical costs, you are not eligible for premium subsidies. But if your employer-based coverage does not meet this standard, you will be able to get insurance through the exchange, and your employer is required to pay a penalty."

 

[retread]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I found this article that states the new "Medical Loss Ratio" goes into effect 2011 and ends 2013 when the exchanged is opened. Its a interesting point.

Wonk Room Does A Higher Medical-Loss Ratio Reduce Insurer Profits?

Look a little more carefully at the date of your source.... things are quite different today than in November of '09. For one thing, the health exchanges go into effect in 2014, and that's just for starters.
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Getting away from this subject an onto another, consider this: All markets are to go GI by 2014... do you think that will not include Med Supps? Can you just imagine Seniors on Medicare being the only ones not allowed GI for a Med Supp?

I think the CMS Medigap program will be completely re-written in the next few years. If they do, I suspect there will be fewer plan choices along with a new alphabet, and I would expect grandfather existing plans.

Look at the mandates in addition to GI: Medicare is to begin providing Preventive benefits. To date, the only Preventive benefit Medicare has offered is the "Welcome to Medicare" PHY on aging in. This was one of the main features of Medicare Advantage plans.

It is possible that CMS will morph MAs into Med Supps, effectively eliminating the MA program.

 

[Mr. Bill]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Go Orange !

S.U. will be the champions when all is said and done !

hey, they are all good games.

The big game is tomorrow.

Sorry, Orange.....

 

[Russ]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Getting away from this subject an onto another, consider this: All markets are to go GI by 2014... do you think that will not include Med Supps? Can you just imagine Seniors on Medicare being the only ones not allowed GI for a Med Supp?

The GI plans by 2014, from what I've read, will include deductibles...co-insurances...just like what Medicare offers. That still leaves insureds to pay those deductibles and co-insurances.

Medicare works the same way....it's basically GI at age 65...then you have deductibles and co-insurances.

Maybe for that reason med-supps won't be GI, although I wouldn't be shocked if they aren't.

What will shock me is if med-supp commissions aren't reduced to around 10% by 2011 and maybe less.

What also shocks me is that no one, with absolute knowledge, has come on this forum and told med-supp agents the exact details of what will happen to our commissions on supplements, by January 1st, 2011.

Apparently no one knows for sure?

 

[medx]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Medicare Information and Medicare supplement Insurance plans
American Seniors Insurance
www.americanseniors.com

Medicare supplemental insurance website
National medicare Supplements
www.nationalmedicaresupplements.com

 

[captain94]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I can see an argument each way. some can say that medsupps are supplemental coverage to medicare much like you can buy "gap" plans for Major medical or cancer plans. Are these plans under the same rules of 80-85% prbly not its additional coverage that you have a "option" to buy.

Ritter had a article yesterday that was a summery of the reform. It talks about Major Medicals, Group Ins, Medicare and MAs nothing about "Supplemental Insurance" or Medsupps..

 

[moonlightandmargaritas]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I can see an argument each way. some can say that medsupps are supplemental coverage to medicare much like you can buy "gap" plans for Major medical or cancer plans. Are these plans under the same rules of 80-85% prbly not its additional coverage that you have a "option" to buy.

Medicare supplement plans are regulated by each individual state as "health insurance".

 

[medx]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Medicare Information and Medicare supplement Insurance plans
American Seniors Insurance
www.americanseniors.com

Medicare supplemental insurance website
National medicare Supplements
www.nationalmedicaresupplements.com

 

[captain94]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I just got of the phone with Department of Insurance, and this is what I was told: "Medicare supplement Insurance is health Insurance that is offered by private Insurance Companies, and must be in compliance with the new mandates that were just passed, including G.I. and the 80% rule."

Thats not good.. write as much as you can now and hope for the best.