Looking for a New Medigap with Different Underwriting

[eharriett]

Got a very large number of clients in a particular supplement that is going to be taking an increase this coming year that I can't justify with my clients. So I am looking to place them with some other A rated companies. My problem is, a lot of my 65 year olds are now 68-72 years old and their health is not as good as it was a few years ago (or in some cases, as bad as it was when they were 65).

People's underwriting options are limited when they have certain problems. And Anthem was offering GI supplements until the end of this month (just found out about this price increase on Friday). Most companies that I am familiar with have similar decline questions, so with a few exceptions, if one company says no, so will most others. The only remaining option I'm aware of is AARP, but that isn't a price drop for a lot of people.

My question is this: can someone recommend an Ohio supplement that has different underwriting than most other companies?

Thanks

 

[SportsNut]

>>>>Anthem was offering GI supplements until the end of this month (just found out about this price increase on Friday).

The rate for Anthem in Ohio is set until July 1st, with no increase. Many other states are seeing an increase Jan 1st. (IN = 9.5% increase Jan 1). Could you be confusing the Ohio Anthem increase with info from other states that you may have read.

Sorry, I've got no other input on your main question about simplified or easy u/w. I think it is Anthem or bust for the most part, and Anthem GI is available for issue dates of 12/1 only; apps must be rec'd on or before 11/30/11.

 

[Frank Stastny]

When I first started there was a huge difference in underwriting among the various companies. Some companies just wanted to know if the prospect could "fog a mirror". They were insuring a lot of "sick" people. (Premium increases are triggered by claims.)

Those companies got burned with a large amount of expensive claims, premiums skyrocketed and drove some out of the Med Supp market. This happened to a company I was with. They had three consecutive years of 35% premium increases because of an extremely high percentage of claims. As a result most companies have gravitated to similar underwriting.

Liberal underwriting is not in the client's best interest in the long run. If an agent starts putting chronically ill people who have a lot of claims in companies that have been trying to insure mostly healthy people, the entire client base is going to be "punished" with large and frequent premium increases.

It's unfortunate for the client but some of them are going to have to keep what they have.

 

[eharriett]

The rate for Anthem in Ohio is set until July 1st, with no increase. Many other states are seeing an increase Jan 1st. (IN = 9.5% increase Jan 1). Could you be confusing the Ohio Anthem increase with info from other states that you may have read.

Should have worded it better, but I'm not trying to move people away from Anthem due to an increase, I only mentioned them because they offered GI until the end of this month and I just found out about another company's increase. It is a different company that I'm concerned about with their increase.

 

[JimmyUt]

The question I have is why must they be A rated. My understanding has always been that ratings don't matter in the Med Supp world because of the protections Medicare has in place? Frank........??

 

[Frank Stastny]

The question I have is why must they be A rated. My understanding has always been that ratings don't matter in the Med Supp world because of the protections Medicare has in place? Frank........??

I totally agree. Ratings when it comes to Med Supp companies are not even worth discussing in my opinion.

If a Med Supp client loses their policy because the insurance company goes "broke" Medicare gives that client a period of GI to get another policy.

None of my clients are ever in any danger of losing the ability to have a Med Supp unless they elect to stop paying the premiums.
- - - - - - - - - - - - - - - - - -

The question I have is why must they be A rated. My understanding has always been that ratings don't matter in the Med Supp world because of the protections Medicare has in place? Frank........??

I totally agree. Ratings when it comes to Med Supp companies are not even worth discussing in my opinion.

If a Med Supp client loses their policy because the insurance company goes "broke" Medicare gives that client a period of GI to get another policy.

None of my clients are ever in any danger of losing the ability to have a Med Supp unless they elect to stop paying the premiums.

 

[DS4]

Having a "A" rating means squat! I had many "A" rated carriers go bust during the junk bond debacle in 1989.
Don't focus on the rating when looking for a new carrier for your clients.

 

[Newby]

I have to disagree with Frank a bit on this one. I had a few people with Shenandoah Life med sups when they hit the wall.

They didn't pull the product. They just had huge rate increases.

I only had 3 of them and 2 were healthy enough to move elsewhere. The other stayed an extra year and then went with an MAPD.

Shenandoah was A rated but failed. It can happen to ANY company. But if you accept low rated or unrated companies it is even more likely.

 

[jdeasy]

I have to disagree with Frank a bit on this one. I had a few people with Shenandoah Life med sups when they hit the wall.

They didn't pull the product. They just had huge rate increases.

I only had 3 of them and 2 were healthy enough to move elsewhere. The other stayed an extra year and then went with an MAPD.

Shenandoah was A rated but failed. It can happen to ANY company. But if you accept low rated or unrated companies it is even more likely.

Technically, Shenandoah was B rated when they failed, but I get the point. I won't write companies that aren't A rated for life insurance. For med sups I don't even check because I don't care.

Of course I'm not a med sup guru by any definition so I might be looking at it wrong.

 

[Frank Stastny]

I have to disagree with Frank a bit on this one. I had a few people with Shenandoah Life med sups when they hit the wall.

They didn't pull the product. They just had huge rate increases.

I only had 3 of them and 2 were healthy enough to move elsewhere. The other stayed an extra year and then went with an MAPD.

Shenandoah was A rated but failed. It can happen to ANY company. But if you accept low rated or unrated companies it is even more likely.

I'm not sure what part you are disagreeing with. I was talking about clients losing their Med Supp, not having the company raise premiums.

I had to go independent because the company I was with had very liberal underwriting which resulted in three consecutive years of 35% premium increases. They didn't get rid of their Med Supp business, they just weren't competitive any more.