Med Supp Knowledge

[medx]

. Many that have taken the plan out previously, are sold on the fact that is pay's preventive care not covered by medicare, but it seems often the Client is not advised it is up to $120.00. Many times I run into this situation, it is a person that has a plan J with a certain Insurance Company.


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[G.Gordon]

Aren't we working on the assumption that premium money is allocated on a plan "letter by letter" bases? I've thought that before, but never found proof. Oh, before you suggest that different rate increases for different lettered plans means that they are financially divided... don't go there. I've asked and asked about this theory; it doesn't hold water with any of the company people I've ever asked. Some companies raise rates more on one letter than another due to what they are experiencing in claims on each plan. Most companies raised rates the same percentage across the board. The only place what you are saying might be an issue is with companies with NO other plan offerings like Old Surity... they only offer A and J. That's a pretty small pool of funds. They did this to exclude themselves from MO's GI law. The only people they have to take will be underwritten.
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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.

Be careful of blanket statements. In MO an more so in my area United of Omaha's plan J is the best deal around for those married or living with someone. It's the same price or cheaper than any of my D's or G's. I used to be a 100% D/G guy, but right now for my T65's and the majority of my new clients... it's the best value. Even if it's more expensive it is usually by $1-5/mo and for that extra money they get the ded. paid. Plan J for a T65 female is $95.
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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+.

Now in this case the money is kept seperate. Pre-standard books or books closed due to the company NO LONGER OFFERING new sales are the exception to what I've learned. Take Mutual of O. for example. When they closed United World and Mutual of Omaha books in MO those two plan groupings have taken larger increases. They truely DON'T have new money going in. The United of O. book however is open and no matter what plan a person is in with UOO it all goes in one kitty.

 

[somarco]

Carriers are not completely stupid. They do have the ability to track loss ratio's in any number of ways. You can bet if they notice an area with above average losses they will adjust accordingly. This is especially true with closed blocks of business.

OTOH, better than expected loss ratio's don't get equal attention.

 

[G.Gordon]

I am not a fan of the Plan J either, never have been.. Many that have taken the plan out previously, are sold on the fact that is pay's preventive care not covered by medicare, but it seems often the Client is not advised it is up to $120.00. Many times I run into this situation, it is a person that has a plan J with a certain Insurance Company.
.

That's a weak agent trying to make a sale. I basically tell everyone buying a J that they are buying a funny looking F and don't expect any benefit from those two "extra" benefits at the bottom. I go on to explain that they are such usefull benefits that they will be eliminated from the benefit design for plans sold after June 2010 due to changes in Medicare since 1990.

FYI... even though standardized plans were opened in 1992 they were designed in 1990. Much like the modernized plans were designed in 2008, but sold in 2010.
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Carriers are not completely stupid. They do have the ability to track loss ratio's in any number of ways. You can bet if they notice an area with above average losses they will adjust accordingly. This is especially true with closed blocks of business.

OTOH, better than expected loss ratio's don't get equal attention.

Totally agree. The art of actuarial sciences ( I like saying that) has come a long way. That's why in Missouri we don't have an affordable Plan C. With our GI law and the fact that a good amount of seniors initially buy from AARP or Blue and both of those companies talk clients into a C. Then when Joe agent finds said client they are older and possibly sicker, but they are GI for a plan C. Basically what some companies are doing is eliminating themselves from the GI selection as much as possible by not offering plan C. Companies must offer plan F. We currently have two companies offering C... blue and antex. Christian fidelity for example or course offers Plan A and F as required, but the only plan they are competitve with is G. Thus the only people they have to take are those that T65, have a current G, or pass underwriting.

 

[hardwork]

The more knowledgeable you are, the easier time you will have selling.

Then have the lowest priced Med supp.... (I like the high deductible J because it's so cheap that I can add an FE policy to the sale).

Jody,
Over the yrs, I can tell you that it does not take too much effort for an agent to come behind you and replace your HD plan J.
It goes something like this:

Agent- Mary did you know you had to pay $2000 first before this
plan pays a dime? (Seniors have Short Term Memory)

Mary - I didn't know that! or I knew I had a deductible, but I
didn't think it was that high! I have life Ins with him too!
He said it was a good deal.

Agent- What !!!

This is the short version of course !
You may very well loose both policies in the house! I have learned to give the next agent as little ammo as possible.

 

[celestrill]

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

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

[...]

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.

Thanks, Frank. I am expecting a little windfall of money at the end of the month (from AEP) and I plan to purchase your office software program (I have downloaded the trial and it's exactly what I need), and will be taking you up on your coaching. I've been selling Med Sup since 2006 and am somewhat a Medicare expert (compared to many agents not in this forum, I am the one-eyed king of the blind), but I'm mostly interested in the marketing aspects.

I'm looking forward to consulting with you.
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I am not a fan of the Plan J either, never have been.. Many that have taken the plan out previously, are sold on the fact that is pay's preventive care not covered by medicare, but it seems often the Client is not advised it is up to $120.00. Many times I run into this situation, it is a person that has a plan J with a certain Insurance Company.
.

I've never sold a Plan J, either. I just thought it was excessive and most people don't need it. I also was wary of it when I discovered that it was the preferred plan sold by Bankers, and that made it stink even more.

I have sold almost exclusively Plan F in Ohio, a couple of "Selects" with people who already had docs in the network, and a couple plan Gs. I look forward to the plans M & N.

 

[G.Gordon]

I'll agree with HW. I've killed every HD F (never seen a hdJ) that I've run across. Almost 100% of those were also sold some half-assed LTC or life insurance plan. I don't mind telling the client that "IMO" the reason they were sold a hdF was so the agent could make a sale of a higher commission product. The sad thing is that I can usually get them a plan D, G, or at times even a F for what they are paying for the hd supplement. IF I can... that agent could to. Now I have a client for life.

 

[DS4]

Come on people! Whose of you that preach "Plan D only" and are haters of J need to realize each state is different.
Here in California, AARP F is $9/mo. more than D. Why not pay $108/yr more in premium to get your $155 deductible paid?????
Plan J is $2/mo more than Plan F.

 

[Yoda]

"Come on people! Whose of you that preach "Plan D only" and are haters of J need to realize each state is different."
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I dont know what all these self proclaimed "medicare experts" are talking about either! The "J" plan from Mutual Of Omaha was a gread deal for the clients. It was cheaper then their "F" plan and it came with a rider giving the policy owner a free no medical questions asked pass to switch to any other Mutual supp anytime in the future. It was a win win situation for the clients and still will be for a couple of more months.

 

[jody108]

Jody,
Over the yrs, I can tell you that it does not take too much effort for an agent to come behind you and replace your HD plan J.
It goes something like this:

Agent- Mary did you know you had to pay $2000 first before this
plan pays a dime? (Seniors have Short Term Memory)

Mary - I didn't know that! or I knew I had a deductible, but I
didn't think it was that high! I have life Ins with him too!
He said it was a good deal.

Agent- What !!!

This is the short version of course !
You may very well loose both policies in the house! I have learned to give the next agent as little ammo as possible.

The type person that buys Med Supp in my area isn't so dense. They usually are educated and quite on top of their business.

They also understand that a $2000 deductible makes more sense if they are healthy and rarely go to the doctor.

It's what I would buy. I prefer to take the small risk and save my money every month.