Med Supp Knowledge

[G.Gordon]

O.K. know that medicare covers only 80%, learn plans A-L and know the enrollment periods and I'm ready to go. Is that about right?

Medicare covers about 59%

 

[Winter_123]

How you coming on familiarizing yourself with the med supp laws and regulations in your state.

Cross-selling FE on a med supp appointment is a fantastic idea, except it is illegal in my state. How about your state? What are the special rules and regulations that go with selling and enrolling people in med supps in your state. You have reviewed all that yes?

 

[jody108]

Just my humble opinion but that entire process is way too lengthy. There are way too many places for her to lose interest, get distracted and confused.

I never, ever lay out several plans and then ask them to make a choice. I'm the "expert" not her. After educating her and listening to what she has to say, then she will realize that the Plan I am recommending for her is the best one.

My prospects look to me to recommend the Plan that is the best investment of their premium dollar. It doesn't make me look very professional when I convey to them that I don't know either.

By giving them a selection I am in essence telling them that I don't know which one is the best one. It seems like you might as well suggest to them that they simply flip a coin to decide.

I prefer to ask for the sale. It works better for me.

Also, I spend a lot of time with clients so, yes, my style is lengthy. But it works very well.

I'm sure your way works just as well or better.

So we just need one more option for agents out there and then let them choose which best works for them

Jody

P.S. I actually did try it your way and I flopped. That is why I geared the Med Supp presentation to my style for selling FE. It has worked so I have kept doing it.
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How you coming on familiarizing yourself with the med supp laws and regulations in your state.

Cross-selling FE on a med supp appointment is a fantastic idea, except it is illegal in my state. How about your state? What are the special rules and regulations that go with selling and enrolling people in med supps in your state. You have reviewed all that yes?

Glad I live in Texas and not a communist regime.

 

[Frank Stastny]

Re: Med Sup Plans M & N and Extinction of Plan J etc.

I've been searching the forum for awhile and did not find any posts about the new Plans M & N being introduced in July 2010 and Plan J (a popular one for Bankers and some other carriers) being phased out. Members will be "grandfathered" in to the phased out plans but no new pool of insured will be put into Plan J.

I posted a thread I think in June titles July 1, 2010 or something like that explaining plans M & N.

Question 1: are the agents here who do Med Sup planning to move their clients from Plan J to Plan F or G (or a similar coverage?) What are you telling people about Plan J? Do you advise them to consider changing plans in July to avoid a potential rate increase that may be large down the road because of no new pool of insured in that plan?

I would advise any agent who has clients in Plan J to move them out of Plan J into something else, not necessarily one of the new Plans unless it is in their best interest. Plan J is going to get very expensive and you don't want your clients to get stuck with it.

You can begin writing the new Standardized Plans with every company three months prior to the effective date on the application.

Question 2: How do you intend to market Plans M & N (sort of Med Sup Lite) in July and do you think it's a good move for some in Medicare Advantage plans?

I will begin marketing Plans M & N heavily in the metro areas in late September to seniors who have HMO's. I believe I will be able to show them that taking either M or N will be a better investment of their premium dollar than keeping the HMO or PFFS plan they currently have.

Would it be wise to wait until Plans M & N are available before selling more expensive plans the first quarter?

Definitely not. Sign them up as a client now and if in fact Plan M or N is better for them then move them when they are available.

I will be glad to discuss it further if you like. Just give me a call anytime.

 

[jody108]

Man, did'nt know I was going to ruffle feathers.. Sorry 'bout that. I deleted the post. Hope that helps.

But I'm not a pillpopper by any means . It refers to completly something else.

Have agreat day!

I don't think you ruffled any feathers. G.Gordon was just making a point. He wants you to have more confidence in what you are doing and not be afraid to ask for sales. Regardless of the possible response or past response.

That's my interpretation anyway .

Also, Frank, I don't see where Plan J is going up? It is pretty steady across the board with Equitable Casuality and LIfe (the company I use for J).The high deductible J never even goes over $100 a month.
What am I missing?

 

[G.Gordon]

Re: Med Sup Plans M & N and Extinction of Plan J etc.

I
I would advise any agent who has clients in Plan J to move them out of Plan J into something else, not necessarily one of the new Plans unless it is in their best interest. Plan J is going to get very expensive and you don't want your clients to get stuck with it.

Frank,

I've heard others and now you preaching that OPINION. I call it opinion because I don't know of any information or trend that would make one make that statement as fact. Anyone on a plan J will be younger or underwritten since plan J sans the drug benefit really didn't start getting marketed until maybe mid 2007. So with that said anyone on it either aged in or passed underwriting.

So, what do you have to support your stance on Plan J getting more expensive than any other plan grouping.

Gordon

 

[Frank Stastny]

Re: Med Sup Plans M & N and Extinction of Plan J etc.

Frank,

I've heard others and now you preaching that OPINION. I call it opinion because I don't know of any information or trend that would make one make that statement as fact. Anyone on a plan J will be younger or underwritten since plan J sans the drug benefit really didn't start getting marketed until maybe mid 2007. So with that said anyone on it either aged in or passed underwriting.

So, what do you have to support your stance on Plan J getting more expensive than any other plan grouping.

Gordon

Plan J is not going to be offered after May 31, 2010. This means that no new revenue will be coming in to insurance companies for Plan J. However, claims will continue coming in.

Premium increases are based on the percent of claims to revenue. With no new revenue but continued claims, the claims will start eating away at the fixed amount of revenue. When J gets an increase, (do you know of any plan that has never increased?) seniors will go shopping. The healthy ones will start leaving the company they have J with and go elsewhere. After a while the only ones who will have J will be the ones who can't switch because of health reasons. (Yes I know that won't be true in Missouri.)

The amount of revenue compared to claims will continue to decrease until the amount of claims exceed the revenue. The insurance company is going to have to do something to increase the revenue to try to balance that out. Increasing premiums is the only thing I can think of.

I'm not saying it is going to happen tomorrow but it is going to happen. Even though those who have J may be "younger" or had to go through underwriting, that does not mean that they are going to continue to be healthy and claim free forever.

If my logic is flawed please explain why you don't think that is going to happen.

 

[DS4]

What Frank is speaking of is the classic "death spiral". With Plan J closed to new insureds, and, no new blood getting added to Plan J, current insureds will age and drive premium cost at an abnormally higher increase.
I have many insureds I wrote prior to Medicare Standardization (A to J letter plans) in 1992. One plan through Anthem Blue Cross, Prudent Buyer Platinum, is $804/mo. The other is through Blue Shield of California, Coronet Senior Plan, is $715/mo.
Everyone in both of these two closed plans are 82+.

 

[Frank Stastny]

What Frank is speaking of is the classic "death spiral". With Plan J closed to new insureds, and, no new blood getting added to Plan J, current insureds will age and drive premium cost at an abnormally higher increase.
I have many insureds I wrote prior to Medicare Standardization (A to J letter plans) in 1992. One plan through Anthem Blue Cross, Prudent Buyer Platinum, is $804/mo. The other is through Blue Shield of California, Coronet Senior Plan, is $715/mo.
Everyone in both of these two closed plans are 82+.

Yea, what you said. I took the long way around. Thanks for summing it up.

 

[VaDwayne]

What Frank is speaking of is the classic "death spiral". With Plan J closed to new insureds, and, no new blood getting added to Plan J, current insureds will age and drive premium cost at an abnormally higher increase.
I have many insureds I wrote prior to Medicare Standardization (A to J letter plans) in 1992. One plan through Anthem Blue Cross, Prudent Buyer Platinum, is $804/mo. The other is through Blue Shield of California, Coronet Senior Plan, is $715/mo.
Everyone in both of these two closed plans are 82+.

Great explanation Frank and Dayton, and what you are speaking of is inevitable as people get older.

Regardless, plan J is a waste of money for the beneficiary and is not the best plan for them anymore. I agree with something that Frank told me a long time ago and that was the only reason agents sell plan J is for a higher commission, not what's best for the client.