MA & Indemnity Plans

[vic120]

I run into on occasion the right situation person has $0 plan or wants $0 premium and supp is just too much money or stuck on there friend has and loves such and such plan or maybe they cant qualify for good rate for supp.


If it is one of these situations and I can do an indemnity for less then $40. I will sell it.

It happens from time to time but most times those stars don't all line up together, I might do 5 or so of those plans a year

 

[plannerman]

FWIW I went back over my posts. Copied and pasted to see if there was anywhere I had attacked or insulted anyone in this thread. The closest was in response to "my clients can't afford Medigap" and my comment was "Perhaps you need a better clientele. " Now if someone takes offense to that maybe they should not be in sales. But I did ask and infer a number of questions and never got anything close to an informed response. I also saw a more than one agent attempt to justify selling a hospital indemnity plan by offering sales rhetoric, not irrefutable fact. You guys and gals have fun. See no reason to waste any more time here. Argue among yourselves as to which one is the greatest.

I am the greatest, wait what are we talking about haha

 

[G.Gordon]

G Gordon...I'm not seeing your logic. Maybe you can help me understand so I won't mislead a client.

I had one this year that hit the 6000 out of pocket...and it killed their bank acct. Th logic of paying an extra $400/year and have had almost all that money paid back from an indemnity policy makes sense to me.

To understand you must get the details of that $6000 loss. Compare that to the benefits of that $400/year plan, chances are that not even 1/3rd of that loss would have come back to them, if even the plan premium.

Hospital days are not what drives the higher losses in MAPD coverage. At best, most plans around here max out at $1500-1750 for a single say. How often does the average Medicare person stay in the hospital for more than three days? Not often. Now, what are the chance they'll stay for the five days? Even less.

Now, you have to start adding extras to the plan for it to cover other areas of loss.... areas that the insurance company knows the stats on and can guarantee that they are not losing money by selling those add on benefits.

Sure, those FMO's hawking the great "benefit to clients" these plans provide have an interest. It is upline commissions. I work for my client, not the company or FMO. Those plans, at best, are no more a good deal than a scratch off from the local C store.

 

[midwestbroker]

Agents are still divided in two camps...MA vs Supp

I have always been part of the "let your client decide" camp, but as we all know, a client who is not sure will turn to their agent and say "What do I do?" This is where your ideology of MA + HIP or Supplement will come out.

Which is better? I could sell pro supplement or pro MAPD, as I think we call could. It is just a matter of personal experience with the plans / clients that will create our story to which way to go. I don't think we can have an overall "this is better for all my clients" solution.

I also agree that stacking policies on a MA plan (MA + HIP + Cancer + Etc...) the client is better off with a Medicare supplement (underwriting permitted).

 

[somarco]

Hospital days are not what drives the higher losses in MAPD coverage. At best, most plans around here max out at $1500-1750 for a single say. How often does the average Medicare person stay in the hospital for more than three days? Not often. Now, what are the chance they'll stay for the five days? Even less.

Bingo! ......................................................

 

[Experienced Agent]

To understand you must get the details of that $6000 loss. Compare that to the benefits of that $400/year plan, chances are that not even 1/3rd of that loss would have come back to them, if even the plan premium. Hospital days are not what drives the higher losses in MAPD coverage. At best, most plans around here max out at $1500-1750 for a single say. How often does the average Medicare person stay in the hospital for more than three days? Not often. Now, what are the chance they'll stay for the five days? Even less. Now, you have to start adding extras to the plan for it to cover other areas of loss.... areas that the insurance company knows the stats on and can guarantee that they are not losing money by selling those add on benefits. Sure, those FMO's hawking the great "benefit to clients" these plans provide have an interest. It is upline commissions. I work for my client, not the company or FMO. Those plans, at best, are no more a good deal than a scratch off from the local C store.

To answer your question; the average hospital stay for ages 65 and over is statistically 5.2 days. This is undoubtably the highest MAPD expense in much of the southeast.

 

[Midlevel]

Had 5 people max out the 10 day stay in the hospital in the last year. Received a $3000 check from GTL and paid around $1500 of that to the hospital and pocketed the other $1500. These plan are a terrible idea. Paid less than $450/year premium also.

 

[Todd King]

To answer your question; the average hospital stay for ages 65 and over is statistically 5.2 days. This is undoubtably the highest MAPD expense in much of the southeast.

Would you please share with us where you have gotten this information?

 

[mchris]

Would you please share with us where you have gotten this information?

Those are the same numbers that I have seen before. I found them online from a Healthcare Costs and Utilization Project study.

I believe that HIP plans can provide a great way to help offset the risk/fear of the high MOOP amounts for a client for a reasonable premium.

 

[somarco]

I found them online from a Healthcare Costs and Utilization Project study.

Then perhaps you can find it again. We certainly hope so.