MA & Indemnity Plans

Oh geez, we get it. You guys are against HIP plans. Move on. You're not going to convince others to not sell it. Let's be honest, insurance companies are there to profit for any types of plans. Just because you like some over others doesn't make it wrong for people to offer it.
 
Oh geez, we get it. You guys are against HIP plans. Move on. You're not going to convince others to not sell it. Let's be honest, insurance companies are there to profit for any types of plans. Just because you like some over others doesn't make it wrong for people to offer it.

Exactly.... This is an example of "You can't sell stupid". Only difference in this case, it's the agent that's taken the "stupid" role.
 
So should we assume you use this to peddle HIP?

I was just showing where "Experienced Agent" came up with his numbers. And to get back to the original topic of this thread, as others have stated, I believe GTL is the best overall plan. They offer down to a 3 day benefit period, they cover observation care, and benefits kick in at only 12 hours in the hospital so they don't have to stay a full day. AND its GI at age 65.
 
Agents who peddle this stuff never offer convincing proof that it is good for the client. Only that it is good for the agent.

Agents act as if the only OOP exposure with an MA plan is for hospital inpatient stays. That is very short sighted.
 
When someone is really sick or has been delaying medical care until 65, GTL can be an awesome fit. Your not "peddling" anything. You talk with the client and say, you normally couldn't get this bc of your health but they offer it as GI right now. There is a 6 mo wait so I would buy it now (3 mo before you turn 65) so when you have the surgery in 6 months it is covered. If you go into a facility for rehab, GTL pays $xxx per day, so it can help out there, and it pays the first year or 2 of premium back to you since your in the hospital for 3 days. $600/day + $750 lump sum). Obviously this won't be the case every time but there are situations that make all the sense in the world to add this product.
 
sick or has been delaying medical care until 65, GTL can be an awesome fit.

So can Medigap, which is also GI and more comprehensive than MA + HIP.

When this discussion comes up, the agents pushing MA+ always say their client can't afford Medigap.

Either those agents are talking to really poor people or they are just assuming they can't afford the premium

That also ignores the total need of the client.

Do they current have docs and hospitals they use? How often do they go to the doc? What is their current outlay for health care?

I never presume anything with a new prospect. This is why I ask if they have doctors they would like to continue using. How often do the go to the doctor? How many times have they been in the hospital in the last 10 years? Do they have any planned surgery or extensive testing?

Monthly premium never comes up unless they initiate the discussion and even then I don't answer until I have a good picture of their situation.

Even then, premium is the last item on the list to discuss.

What amazes me are the agents that say "my clients can't afford a Medigap" but then sell a $0 MA plan and add on HIP, cancer, FE and anything else they can to earn a buck.

No mention of why or even if they need these things. It comes across as simply a push to maximize commission dollars without regard to what the client needs or wants.

The report (linked above) indicates 26% of hospital stays are for people 65 to 84. What it doesn't say if that involves multiple admissions which negates the argument that someone in that age bracket has a 1 in 4 chance of a hospital stay lasting 5 days on average.

Averages are deceiving in themselves but that doesn't stop people from making inferences.

In it's simplest form a 5 day average means some people stay 4 days or less while others stay 6 days or longer.

The Part A deductible for 2016 is $1288. Divide that by 5 and that is $257 per day.

If you want to play the 1 in 4 chance of a hospitalization then consider $1288 divided by 4 (years) and again by 5 days. The result is, if the average person who anticipates going in the hospital every 4 years and staying 5 days set aside $64 per year they would self fund that Part A deductible.

But the Part A exposure is not the deal killer. It's Part B that you have to worry about.

I tell people your exposure (original Medicare) for Part B is $166 (for 2016) then the remaining 20%.

There is no cap on the 20%.

You pay until you are well, run out of money, or die.

We have already established their overall health, how they feel about keeping/choosing their own doc, and how much they spend on health care under their current arrangement.

The only thing left at this point is to determine how they will cover their OOP risk after Medicare pays.

We have a very simple discussion about the basics of Medicare. Nothing about deductibles, copay's or provider networks. Nothing about balance billing.

We simply talk about the basics and then they decide what works for them

I rarely have anyone say they can't afford the premium.

Had that discussion 2 weeks ago with a lady on an MA plan that is withdrawing from the market. She was just diagnosed with stage 2 breast cancer.

She has no idea how much her treatment will cost going forward (and neither do I) but she does feel like she could easily spend $2000 - $3000 or more during 2017.

Since she is in a GI situation plan F is the best option.

She will pay $153/mo for plan F and never have to worry about picking a doctor from a list of names she can't pronounce. She doesn't have to count pennies to see if she can afford follow up testing, chemo, etc.

All she has to do at this point is budget $153 each month for health care.

If all goes well for her, and I hope it does, she will probably go back to $0 for 2017 because she doesn't like to pay insurance premiums.

No big deal.

Of course if she calls me back in a few years when the cancer has come back, or something new crops up, I will probably have to tell her to keep what she has.

And by then it is too late to buy a HIP, cancer plan or any of the other add-on policies some agents love to peddle.
 
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