Med Supp Carriers

[kristinaFL]

I am a veteran agent going independent and I want to make sure I understand why you would recommend one carrier over another.
I know that on CSG when quoting you can see years in market, historical price increase history, and market data, etc. However, I've been told you can't always go by some of the data for various reasons, etc (at least according to my new FMO). Then there is who has the largest market percentage in the state.

Why is a recommendation not for the lowest priced major carrier? Specifically here in FL for a Plan G it ranges from $187 to $313. One thing that stands out to me is out of the major carriers Cigna (it is a new block) is substantially cheaper at $190 than say UHC/FB/Humana who all hoover at $215. They are same way for Plan N.

I've seen several old posts from agents standing loyal to UHC/BCBS, but why? How are you justifying this to your clients? The first thing I did was look at underwriting for all carriers and then at the historical price increases in last 5 yrs and Cigna is the only one who has changed their underwriting this year to being very strict in comparison to others. Am I missing something here since I'm newly independent?

 

[somarco]

CSG is not reliable when looking at the number of years in the market. Same for historical rate increases. Both those metrics are meaningless.

The % of business in the state, country is simple. UHC has about 30% of the national market and somewhere near that in the state.

Almost everyone else has less than 1%

You need to learn to sell yourself and stop looking at the numbers. Or stick with UHC for long term stability . . . kind of, depending on the state.

 

[kristinaFL]

I should have clarified that I am asking for my existing clients that are wanting to follow me from my previous company so they can keep me as their agent. It won't be on my radar for new business.

I do sell myself, I don't know any other way to be honestly. Thank you for the reminder that it still might apply here. Good to know about CSG.

 

[billyb]

Are you saying that you are currently a captured agent and are wanting to rewrite the clients that you wrote after you go independent? Most people won't change carriers or can't change because of underwriting. Unless the person is healthy and you can save them a sustantial amount of money it will be a chore.

After next years rate increases all carriers will be over $200 monthly for a Plan G. I was writing, and bought on me and my wife, from the lowest priced carrier in the panhandle and they are going up 12% putting them in line with UHC until June. They also suspended sales. Cigna is the lowest now until March.

I have a book of several thousand MS and have never rolled them because what they had was competitive. I have several closed blocks and they remain in line too. Don't go independent and start trying to move everyone you wrote in the past. Concentrate on new business.

 

[Chazm]

If they are already on UHC and in FL, you’re not moving them. UHC has 55% of the market in FL and we are an issue age state. It’s tough to save them money if they bought the plan at age 65.

Cigna is cheap but imo buying biz because they just sold out

 

[kristinaFL]

No, I was a captured agent and I already went independent. I'm going on year 4 in this business so I walked away from a substantial amount of renewals, but it was my choice. I wanted to be truly unbiased. I'm finding out I have very loyal clients and a lot of them immediately started contacting me after they were sent a letter telling them I no longer worked for the company.

My new FMO told me to focus on my existing clients. I honestly was not sure this was good advice. I am not allowed to induce anyone and haven't broken any rules since they have all contacted me asking me to switch so I would remain their agent. I have to pay for any charge backs but would gain a lot because I would retain the renewals. I spoke with some other agents who I knew went independent from my company who also said to change them because you benefit in the long run.

I am grateful but overwhelmed and its a very awkward spot to be in. I can't exactly tell them no so it really hasn't been a choice. I did come from a carrier that was priced high and so I can technically save them. But I do feel extra pressure since they are existing clients especially with setting their price expectations and choosing another carrier. I'm guessing most of them will not be able to switch again. I was asking about cigna because if I do switch anyone I don't really understand why I wouldn't choose the cheapest major carrier which in my area is cigna. Would they be locked into the price for a year or only until March?

Thank you for your advice, I really appreciate this forum and have been on a crash binge reading it all.

 

[kristinaFL]

Chazm can you please explain what that means to be sold out? As of March 2024 Cigna released a new supplement under Cigna National Health in FL.

 

[Todd King]

No, I was a captured agent and I already went independent. I'm going on year 4 in this business so I walked away from a substantial amount of renewals, but it was my choice. I wanted to be truly unbiased. I'm finding out I have very loyal clients and a lot of them immediately started contacting me after they were sent a letter telling them I no longer worked for the company.

My new FMO told me to focus on my existing clients. I honestly was not sure this was good advice. I am not allowed to induce anyone and haven't broken any rules since they have all contacted me asking me to switch so I would remain their agent. I have to pay for any charge backs but would gain a lot because I would retain the renewals. I spoke with some other agents who I knew went independent from my company who also said to change them because you benefit in the long run.

I am grateful but overwhelmed and its a very awkward spot to be in. I can't exactly tell them no so it really hasn't been a choice. I did come from a carrier that was priced high and so I can technically save them. But I do feel extra pressure since they are existing clients especially with setting their price expectations and choosing another carrier. I'm guessing most of them will not be able to switch again. I was asking about cigna because if I do switch anyone I don't really understand why I wouldn't choose the cheapest major carrier which in my area is cigna. Would they be locked into the price for a year or only until March?

Thank you for your advice, I really appreciate this forum and have been on a crash binge reading it all.

To cover yourself, get any client that comes to you from your existing book to sign a letter saying that they contacted you and not the other way around. I've had to do this in the past and very glad I did!!

 

[Chazm]

Chazm can you please explain what that means to be sold out? As of March 2024 Cigna released a new supplement under Cigna National Health in FL.

https://www.cigna.com/static/www-cigna-com/docs/medicare/cigna-medicare-announcement.pdf

 

[kristinaFL]

To cover yourself, get any client that comes to you from your existing book to sign a letter saying that they contacted you and not the other way around. I've had to do this in the past and very glad I did!!

Thank you Todd for this advice.