Med Supp Carriers

[LurkerBroker]

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?

Stick with the big 5 and you will be fine. United, Mutual, Humana, Aetna, Cigna

 

[somarco]

Cigna is expected to be purchased by HCSC in the first quarter of 2025. Why would you include them in your list?

MOO and Aetna "sponsor" a number of subs and rotate carriers out of the state about every 3 years or so. A few years ago there were 3 Aetna brands in succession in the calendar year in Georgia. So much for stability.

 

[Medicare bro]

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.

Did you sign a non solicit?

 

[LurkerBroker]

Cigna is expected to be purchased by HCSC in the first quarter of 2025. Why would you include them in your list?

MOO and Aetna "sponsor" a number of subs and rotate carriers out of the state about every 3 years or so. A few years ago there were 3 Aetna brands in succession in the calendar year in Georgia. So much for stability.

Then United and Humana it is!!