Med Supp Rate Increases

SusieQ2

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I've been hearing from prospects and others now that Mutual of Omaha has been getting rather large rate increases on their Medicare supplements.

Do you all have a good feel for the companies that are more consistent on their rate increases?

I understand that Plan F may have larger rate increases because it's a more comprehensive plan, so I'm asking a more general/overall question.

I also understand that everyone likes to complain about rate increases even if it's just $5.00. After all that will put 1/2 gallon of gas in the car now;)
 
They all have rate increases, not just Mutual of Omaha. I haven't found one carrier that doesn't. I've been in this business for 20 years. In my area, 20 years ago, it was Pioneer that had the lowest premiums, no one could beat them, then they took massive jumps and Standard Life was the company, than they took massive jumps, then Royal Neighbors was the company, again, they took massive jumps in premium, then the MA plans came out, it seemed like everyone wanted to switch to those type of policies, then, due to funding cuts the MA plans raised their premiums and copays now it's back to Med supps. Mutual of Omaha seems to be one of the top players. I've been switching my Mutual of Omaha clients to the new modernized Mutual of Omaha plans which saves them substantially.
 
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Yes, they all go up. Generally speaking but not always, the companies that underwrite well, and don't introduce overly competitive premiums tend to have the more moderate rate increases, but not always. Just depends on how they manage the block.

Mutual is taking some pretty good increases right now on mostly their block of plans before June of last year (standardized); the modernized, at least here in Texas, are still running strong. I do however, suspect a pretty good increase on these this year. Mutual has made some interesting decisions this year that have been making me wonder. They switched to unisex in Texas and they did the whole G/I for Plan N ordeal.

In my opinion, these decisions are going to result in larger than normal rate hikes.
 
All companies are going to have increases. You can take that to the bank. If fact that is exactly what they enable me to do, go to the bank.

I embrace premium increases. I smile every time I hear that a company has had one. Premium increases are what has enabled me to be a successful Med Supp agent.

Without premium increases I wouldn't have anyone to sell insurance to. My prospects database is full of people who I have talked to in the past but for whatever reason didn't sell them on the initial call. I did, however, get the name of the company they have their insurance with.

When I hear a company has an increase I print a report of everyone who has their insurance with that company and I give them a call. I can always save them money by putting them with a different company and it is almost always an "automatic sale".

Premium increases are what also enables me to keep my clients in a position where I am earning first year commission on the vast majority of them.

I love premium increases. :yes:
 
I dont think the question was "if" companies have rate increases, it was about which companies have more reasonable increases hystorically over time.

Frank, you can only replace so many policies a year. there are only so many hours in the day and you need to sleep for 8 of them. I would much rather have 800ish policies renewing every year and sell an additional 200ish completely new policies. Replacing 800 policies a year seems to be a little inefficient. Not to mention the fact that if your only thinking about first year commission with your clients you might end up putting some people with preexisting conditions in a awkward spot down the road when they get stuck on one of mutual of omahas shell games.
 
Frank lives in one of those states that allows people to make changes on their anniversaries with no health questions asked. It looks like their commissions are lower because of this, but that would be great to able to move your clients, especially the ones with health conditions
 
All med supp companies have rate increases. BCBS "usually" has the lowest percentage increases, but they also start higher than anyone else. So in the end it all equals out. The best thing to do is to keep up with the competitive companies and reposition clients as they come.
 
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