Med Supps

[Frank Stastny]

Why is that? What's wrong with plan F and what would plan would be better?

I'm not gonna be in Missouri, I'm just asking for reference.

Virtually all doctors in Missouri Accept Assignment. If doctors accept assignment then there are no "excess charges". If there are no excess charges then there is no need for a Plan F, the prospect doesn't even need a Plan G.

Practically all the prospects I call on have a Plan F. I don't need to be selling for the "cheapest" company, I can sell for the one with the most stable and fewest increases over the past years.

It really doesn't matter, within reason, what company I sell for, I can blow a Plan F out of the water.

When I explain to the prospect that the only reason the agent sold them a Plan F is because they make more commission, not because they "need" a Plan F they get pissed and are ready to sign with me.

That is why I love greedy agents who sell Plan F in Missouri.

 

[GreenSky]

Why is that? What's wrong with plan F and what would plan would be better?

I'm not gonna be in Missouri, I'm just asking for reference.

The worry about excess charges is really just hype, but if you MUST cover them, look at Plan G - it pays 80% of the excess charges leaving literally 1.8% of the excess left to pay. For those of us knowing that 98% of docs take assignment, Plan D is best.

Here's why: Figure the annual difference in cost between F and D. If it's over $200, then it's not the better value. In some places, the difference can be $400-500 a year and the only real benefit is that Plan F pays the Part B deductible, currently $135.

The other reason that F is usually not the best plan is that when carriers raise their rates, it's F that usually goes up more than D or G.

There are situations where Plan F is worthwhile. I compared "my" plan to a prospects current Plan F. I saved her $600 a year. When I started to explain Plan D, her eyes glazed. I decided that I certainly did my job and checked off the Plan F box. I have other clients who say, I never want a bill and I don't care if I pay more. Okay by me.

The other time I use F is when someone is turing 65. The difference in California is usually less than the Part B deductible so it's worth it. In a few years when I review their plan it might be worthwhile to change to the "better" choice.

(How did I do Frank?)

Rick

 

[senior-advisor-indiana]

I have heard rumors that they are changing the benefits with the standard med supp plans. One of the rumors was that plan G would have 100% excess instead of 80%. I also heard that they will be doing away with plans H-J. Again these are not confirmed but I have heard this from a 2 different sources.

 

[Frank Stastny]

The worry about excess charges is really just hype, but if you MUST cover them, look at Plan G - it pays 80% of the excess charges leaving literally 1.8% of the excess left to pay. For those of us knowing that 98% of docs take assignment, Plan D is best.

Here's why: Figure the annual difference in cost between F and D. If it's over $200, then it's not the better value. In some places, the difference can be $400-500 a year and the only real benefit is that Plan F pays the Part B deductible, currently $135.

The other reason that F is usually not the best plan is that when carriers raise their rates, it's F that usually goes up more than D or G.

There are situations where Plan F is worthwhile. I compared "my" plan to a prospects current Plan F. I saved her $600 a year. When I started to explain Plan D, her eyes glazed. I decided that I certainly did my job and checked off the Plan F box. I have other clients who say, I never want a bill and I don't care if I pay more. Okay by me.

The other time I use F is when someone is turning 65. The difference in California is usually less than the Part B deductible so it's worth it. In a few years when I review their plan it might be worthwhile to change to the "better" choice.

(How did I do Frank?)

Rick

Ya done good! Just like I taught ya.

The only thing you left out is that there are only two states where an agent can switch a "sick" client to another company once each year after the Open Enrollment period has ended and have the policy be guaranteed issue. Missouri and California.

I doubt that you would go with Plan F on a T65 if you didn't know that every year you had the option of switching them to another company. Can you also switch them to a different Plan under GI?

In Missouri, although we can switch them each year to another company, we cannot switch them to a different Plan if it has to be written "Guaranteed Issue".

 

[GreenSky]

Ya done good! Just like I taught ya.

The only thing you left out is that there are only two states where an agent can switch a "sick" client to another company once each year after the Open Enrollment period has ended and have the policy be guaranteed issue. Missouri and California.

I doubt that you would go with Plan F on a T65 if you didn't know that every year you had the option of switching them to another company. Can you also switch them to a different Plan under GI?

In Missouri, although we can switch them each year to another company, we cannot switch them to a different Plan if it has to be written "Guaranteed Issue".

In CA, they can switch to the same or a lower lettered plan on a GI basis. In fact, I had a client with Plan C and we wanted to change to a lower priced carrier. Mutual of Omaha granted the change to Plan G, which shows you just how much value excess charge coverage is worth. By the way, that client was my mother. Her premium went from $209 a month down to $154. Saved over $600 a year and had to pay the $135 Part B deductible.

I know what you're thinking and you're right. My mother has a terrific agent.

Rick

 

[jdeasy]

Thank you all for that. It was quite informative. I'm just getting into med sups and I was under the impression that plan F was the best because of the no co pays. Especially when the difference in premium was less than $135/yr.

Newby had just pointed out to me last week that D and G have the at-home recovery and that was a good selling point here. I already knew that that the excess is not an issue here in Ky.

The one I was talking to Newby about was less than a dollar/month difference in premium for a G plan vs a D. In that case, he said he would go with the G just in case the excess came up.

When I explained to the client about the at home recovery, he was thrilled because they had experienced that with his wife. She is in a high priced AARP med sup F plan that she has had for 6 years. She can't qualify healthwise to switch now.

Had I not talked to Newby, I would have probably went with plan F on the guy thinking I was doing him a favor.

 

[MedSuppRecruiter]

Isn't Admiral a non-rated carrier?

From my research, it appears that ANTEX is lower priced in MO than Admiral.

Be sure you are not locked into a contract with your FMO. Mutual of Omaha requires one year of inactivity to move your contract unless your current FMO gives you a release.

No matter what you do, be certain your FMO is honest enough to provide you with this release letter.

Isn't that right MedSuppRecruiter?

Rick

Med-supp is a price driven commodity Rick. Who cares if the company is not rated, I tell you this if you came in with a $89.00 Med-supp with American National, I would replace you with a Non-rated med-supp $10.00 cheaper in premium a month.

 

[theinuranceguy]

Med-supp is a price driven commodity Rick. Who cares if the company is not rated, I tell you this if you came in with a $89.00 Med-supp with American National, I would replace you with a Non-rated med-supp $10.00 cheaper in premium a month.

Parker & Associates runs in your blood

 

[Frank Stastny]

Thank you all for that. It was quite informative. I'm just getting into med sups and I was under the impression that plan F was the best because of the no co pays. Especially when the difference in premium was less than $135/yr.

Newby had just pointed out to me last week that D and G have the at-home recovery and that was a good selling point here. I already knew that that the excess is not an issue here in Ky.

The one I was talking to Newby about was less than a dollar/month difference in premium for a G plan vs a D. In that case, he said he would go with the G just in case the excess came up.

When I explained to the client about the at home recovery, he was thrilled because they had experienced that with his wife. She is in a high priced AARP med sup F plan that she has had for 6 years. She can't qualify healthwise to switch now.

Had I not talked to Newby, I would have probably went with plan F on the guy thinking I was doing him a favor.

Rick and I have a unique situation in that we can switch clients once a year GI.

The only reason I would suggest you start with a D and not G is that a lot of companies have different percentage increases for each Plan with they have a premium increase.

I have noticed with those companies I represent in Missouri who do that, Plan D usually gets the smallest increase. G is usually higher and the increase for Plan F is usually huge.

It's not always about saving money now as much as it can be saving money three to five years from now.

I do not switch my clients every time a "new kid" comes to Missouri with cheaper rates. I know that "new kid" is going to have a huge increase within the next 12 to 24 months.

I put my clients with a good stable company, communicate with them on a regular basis and keep them feeling warm and fuzzy. Don't be afraid of a slight increase as long as you are providing quality service and communicating with your clients on a regular basis.

 

[GreenSky]

Med-supp is a price driven commodity Rick. Who cares if the company is not rated, I tell you this if you came in with a $89.00 Med-supp with American National, I would replace you with a Non-rated med-supp $10.00 cheaper in premium a month.

Your integrity astounds me! So glad you are on this board so we can all see the seedy side of the business close up.

Rick