Med Supp Knowledge

[GreenSky]

Jody:

Remind me because I might be incorrect. Didn't you state a few months ago that you hated med supps and wouldn't want to write any? You were making so much money in FE that you didn't have time for them.

Rick

 

[Slade]

Plan J will not be at any more risk of future rate increases than any other current Plan A through I.

The 2010 Modernized Plans A through N will all be new blocks of business with lower premiums than the existing plans.

Anyone who stays on any of the current standardized plans will experience rapidly rising premiums in the future. There is going to be a great premium disparity for all uninsurable beneficiaries on the current plans, regardless of which plan they have.

 

[Yoda]

"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."
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I know your an expert and all but because Im in a good mood Im going to share with you todays "golden tip". Its not about what you would do or what you would want! You are not selling to yourself you are selling to the public in mass. Most people 65 and older do not want to mess with paying bills and watching their deductible and all that. Lets face it the Drs are milking the medicare system for everything its worth. The average person 65 yrs and older who walks into Drs offices has got those Drs trying to sell him/her everything from a prostate exam to a knee replacement to stints to a colonostomy. We insurance agents are not the only salesman working the senior citizen market! And heres the thing, those senior citizens are buying the sales pitches the Drs are using. They are buying what the Drs are selling hook line and sinker.

 

[jody108]

Jody:

Remind me because I might be incorrect. Didn't you state a few months ago that you hated med supps and wouldn't want to write any? You were making so much money in FE that you didn't have time for them.

Rick

I don't focus on Medicare Supplement because I found it to be a waste of time in my area. Most are on MA plans.

I don't think I have ever felt hatred toward the product but I did find that I made more money selling FE so Med Supp quickly became a cross sale, rather than a primary sale.

However, I do work Med Supp leads from time to time and I help my current clients with their Medicare.

But, my God, I don't hate Medicare Supplement. That would be a little over the top.
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"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."
================================================

I know your an expert and all but because Im in a good mood Im going to share with you todays "golden tip". Its not about what you would do or what you would want! You are not selling to yourself you are selling to the public in mass. Most people 65 and older do not want to mess with paying bills and watching their deductible and all that. Lets face it the Drs are milking the medicare system for everything its worth. The average person 65 yrs and older who walks into Drs offices has got those Drs trying to sell him/her everything from a prostate exam to a knee replacement to stints to a colonostomy. We insurance agents are not the only salesman working the senior citizen market! And heres the thing, those senior citizens are buying the sales pitches the Drs are using. They are buying what the Drs are selling hook line and sinker.

Then you are selling to a different type client than I am.

The one's I have offered this to have been greatly appreciative and thanked me over and over. They like it.

And they understand the deductible and the risk.

Remember, I do give them the choice. They aren't retarded.

 

[Frank Stastny]

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.

Aren't you contradicting yourself?

 

[celestrill]

Before Medicare Advantage $0 premium plans, high deductible Med Sups might have made sense. After MAs were available, there was no sense in putting someone in that when they'd spend virtually no money in a MA plan if they were healthy.

Similarly, while it is true that all med sups that continue to exist after they add the M & N plans will be subject to a greater rise in premiums, the companies can raise the J plan more as a "group" than the other plans that are continuing to get a pool of newly insured healthier 65s.

The longer you have a sup, the more expensive it is, no matter whose you have.

Frankly, I wish they'd make Medicare available to the 55-64 age group.

 

[Slade]

Similarly, while it is true that all med sups that continue to exist after they add the M & N plans will be subject to a greater rise in premiums, the companies can raise the J plan more as a "group" than the other plans that are continuing to get a pool of newly insured healthier 65s.

After June 1, 2010, none of the current plans A thru J will exist for new business. None of the current plans will continue to get a "pool of newly insured" after June 1.

 

[Yoda]

" Frankly, I wish they'd make Medicare available to the 55-64 age group."
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With the baby boomers sitting all over that age group like that was ever going to happen. Like the "terminator" said this is not health care reform this is a joke.

 

[G.Gordon]

Aren't you contradicting yourself?

Not at all. Actually my comments you quoted support my beliefs. I'm just trying to understand why some believe and preach that J will have greater trends for RUs that other letters. What I said in the quote was that if a company experiences more claims on a certain letter plan then they have raised rates more on that letter than the rest of the book. I in no way implied that J would have more or less of a chance to have that rate increase. Most companies don't do this, but I've seen it before.

Futhermore, all the plan J's being placed in force at this time are, like I said, younger T65'rs or folks that passed underwriting... therefore it would make more sense that they would be more rate stable than the others. That goes even more so in MO where all the other letters are subject to the MO GI law bringing them high risk clients. Plan J is somewhat immune to this since it has only been offered (sans drug benefits) for a couple years at the most.

What I'm understanding from your and other's statements is that J will in fact have RU's at a greater trend than others.

Why?
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After June 1, 2010, none of the current plans A thru J will exist for new business. None of the current plans will continue to get a "pool of newly insured" after June 1.

That's right and therefore every medsupp issued prior to that date is or could be in a dead pool.

 

[somarco]

all the plan J's being placed in force at this time are, like I said, younger T65'rs or folks that passed underwriting... therefore it would make more sense that they would be more rate stable than the others.

From an actuarial position, underwriting becomes almost meaningless after 3 years. I would think this would be even more so on folks age 65+.

On the under 65 block, some carriers try to purge their block once it has been on the books for 3 years and move as much of it as possible off by year 5.

Even if a particular plan has only been available for a couple of years, and has been underwritten, once that block is frozen (no new bodies) it starts to deteriorate. As it declines claims increase relative to premiums requiring higher and higher rate increases until the block is completely purged.