Lifetime Annual Rate Increases Vs Top Rate Freezes at Age 75

Oct 12, 2015

  1. yorkriver1
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    yorkriver1 Guru

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    New information for me. Discussing merits of Med/Supp Plan G vs. Plan F with another agent, looking at rates for Aetna, Cigna, etc. "But do those lower cost carriers have annual rate increases to age 99, or does the age rating table stop at 75?" Looking at the Aetna tables, rates to 99.

    The BCBS in our state goes to age 75, all ages above are same, also limited to top age with UHC/AARP.

    There must be a counter to this "drawback". I am interested to know, as I have not seen that discussion here.
     
  2. Chazm
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    The table rating is just for someone that would be buying a plan on that day. Doesn't mean they wouldn't still have an annual premium increase.

    I'm not sure if that's what you are asking
     
    Chazm, Oct 12, 2015
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  3. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Most other companies will have the annual rate increase through 99. Not sure how many raise it after 100.
     
  4. Newby
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    Was the rate at age 75 pretty much equal to what it was was at age 99? If so they just got there quicker.
     
    Newby, Oct 12, 2015
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  5. russelltw
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    Not sure that's a race my clients want to win...
    We have a carrier that tiers rates (65, 66-69, 70-74, 75+). The 75+ is pretty high as compared to other 75's. Their rate cracks the top 10 at age 90.

    Some clients take that "pitch" to mean there are no increases after 75, which is NOT what happens. Medicare changes copay/deductible; plans have to adjust accordingly each year.
     
  6. somarco
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    somarco GA Medicare Expert

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    Most carriers in GA use issue age, so if you buy at 65 your renewal rates are age 65.

    A few use modified community rating and your rate will increase when you move into the next age bracket. In some cases you may receive 2 rate increases in the same year. One for trend on the policy anniversary, another for age creep.

    I noticed Americo (the new kid) is attained age, so those rates will go up every year as you age + presumably trend.

    YMMV
     
    somarco, Oct 12, 2015
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  7. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    The theory behind issue age sounds good. UA used to make a big deal out of having issue aged pricing and showed illustrations on how much more stable the premiums would be vs. attained age over the years. Ha, after 5 years their premiums were higher than other's attained age. I guess you could say, just imagine how high it would've been if it hadn't been issue age. I see very little issue age being sold here, almost all attained age. I guess it must be determined by the state.

    Physicians Mutual used to offer both issue age and attained age. Seems like it was an extra $5 a month for issue age.

    Not many companies have age banding here. BCBS used to but stopped a couple of years ago.
     
  8. yorkriver1
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    So, rating type used by carrier: "issue age", vs. "modified community rating", vs. "attained age", all of which I have studied over and over in various CE settings. Real world app.

    Will find out. Re: carriers upper age rate showing, yes, russeltw, must be careful not to create the impression that rate tables ending at age 75 mean no rate increases.

    Also, underwriting, and whatever else figures into loss ratio affects rate increases. It will be interesting to see if the hopes pan out for lower year on year increases for Plan G and, say, N, where there is no GI beyond OE.

    There's no perfect way to make a 100% "safe" Med/Supp decision that lasts a lifetime. Back to choosing HiDF as a hedge on unsustainable rate increases.
     
    Last edited: Oct 12, 2015
  9. somarco
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    somarco GA Medicare Expert

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    Tom, all I have seen here for the last 5 yrs is issue age and the handful of community rated. Americo attained age just popped up on CSG today and noticed they are issue age. Middle of the pack. Nothing exciting. See no reason to get appointed at this time.

    My "go to" carriers have been increasing rates 3 - 5% for the last couple of years. Beats the heck out of double digit rates just a couple of years ago.
     
    somarco, Oct 12, 2015
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  10. yorkriver1
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    Helpful. I think I will find that many are attained age in my state, too. Aetna is, Humana, Equitable, three I checked so far.
     
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