MedAmerica's Transitions

[Arthur Rudnick]

Transitions has launched in AL, AR, FL, GA, IA, KY, LA, MI, NC, OH, SC & TN! Coming soon to AK, NE, OR, & SD (Jan 2012)

It seems tht MedAmerica is rolling out Transitions, (their Short Term Care Policy) in additional states. It's not here in NY yet so I really haven't paid much attention to it.

In some states it's being filed as LTC (TQ) and in others it's being filed as Health Insurance (non-TQ)

Anyone writing this product and if you are, what's your thoughts and who do you see as your target market?

 

[Mr_Ed]

Transitions has launched in AL, AR, FL, GA, IA, KY, LA, MI, NC, OH, SC & TN! Coming soon to AK, NE, OR, & SD (Jan 2012)

It seems tht MedAmerica is rolling out Transitions, (their Short Term Care Policy) in additional states. It's not here in NY yet so I really haven't paid much attention to it.

In some states it's being filed as LTC (TQ) and in others it's being filed as Health Insurance (non-TQ)

Anyone writing this product and if you are, what's your thoughts and who do you see as your target market?

 

[billberry12]

No thoughts. No target market. No idea what they are thinking with this product. Maybe they are not thinking at all. Who Knows.

 

[Arthur Rudnick]

No thoughts. No target market. No idea what they are thinking with this product. Maybe they are not thinking at all. Who Knows

Looks like we're on the same page. Along with every state's rollout, there are also webinar's from MedAmerica on the "wonders" of their new product.

Their marketing people think Transitions is a GREAT product.

I love company suits who sit behind a desk and have no clue what the agents & broker's world is about. They developed the product, let's see tham sell it to consumers rather than sell it to to a sales force (us) who it appears has no use for it.

 

[yankee466]

We went through this once before.....and decided it was a very valuable product for people concerned with short term recovery...not with Long Term Care. It is attractively priced for what it is....and with potentially no APS and simple YES/NO UW, it may have a place. It is not intended to sold as a LTC plan IMHO.

Else, I doubt I will ever sell it, despite the relentless emails I get telling me that since I have nothing to do with AEP over, I should go out and sell this. As a MAPD guy, I could carry it with me for low cost care that is easy to exhaust if something bad happens.

 

[Arthur Rudnick]

We went through this once before.....and decided it was a very valuable product for people concerned with short term recovery

And who decided? In some states it's a TQ LTC policy, in others, it's health insurance.

"People concerned with short term recovery"
Short term, meaning what? 6 months? 1 year? If I recall it has a benefit period of up to 3 years. To me, 3 years is not STC, it's LTC.

Isn't Medicare for short term recovery? Isn't major medical for short term recovery?

OK, give me a typical proposal that you would suggest for a 60 year old in good health. What benefit period, what benefit amount, what elimination period & what inflation rider would you recommend? And, what's the premium?

I'm just having a hard time trying to figure out who is a good candidate for this product.

 

[yankee466]

And who decided? In some states it's a TQ LTC policy, in others, it's health insurance.

"People concerned with short term recovery"
Short term, meaning what? 6 months? 1 year? If I recall it has a benefit period of up to 3 years. To me, 3 years is not STC, it's LTC.

Isn't Medicare for short term recovery? Isn't major medical for short term recovery?

OK, give me a typical proposal that you would suggest for a 60 year old in good health. What benefit period, what benefit amount, what elimination period & what inflation rider would you recommend? And, what's the premium?

I'm just having a hard time trying to figure out who is a good candidate for this product.

If all you do is sell LTC, you do not even think about this product.

It comes with only 100, 200, or 360 days of care (here in Georgia anyway), but you can obviously stretch it out longer with the pool of money approach. Medicare pays for basically NO LTC care, only skilled nursing following a hospital stay. What if you wanted to be taken care of at home? What if you suffered from a condition not expected to last more than 90 days, but you needed help for 60? Who pays? Maybe your LTC plan has a 90/180 day wait period....and you are suddenly concerned about the cost of home care inside that window.

Its cheap compared to traditional LTC policies, but you only get a short time for coverage. So, the theory is, you 1) quit thinking about the product and keep doing what you are doing, 2) sell it those who can not afford any LTC insurance at all and who promise to die within 6-12 months of going on benefit, or 3) sell it as short term recovery plans to people of any age concerned about who will pay to wipe their behind if they need help for 3-6 months and they can not afford a LTC plan with a minimum 2 year benefit period.

Benefit example 60 year old....$100/day benefit....5% simple, 100 day benefit ($10,000 pool), restoration of benefits, 20 day elimination period, w/spousal discount = $44/month. Take out the inflation factor and you get about $28/month. Ever sell a MAPD plan?

Else....I signed up for it, but doubt I'll ever sell it. I feel about the same way with linked benefit plans too.......but every product has a buyer if you keep your ears open.

 

[CALTCAgent]

I would sell it as an "alternative" for people who can't qualify for traditional LTC.

Side note:

I was told by one company that has a "short term care" product in other states that in CA the reserving requirements are high, so after paying agent comp and reserving requirement, nothing is left.

Thanks!

 

[yankee466]

I would sell it as an "alternative" for people who can't qualify for traditional LTC.

Side note:

I was told by one company that has a "short term care" product in other states that in CA the reserving requirements are high, so after paying agent comp and reserving requirement, nothing is left.

Thanks!

The UW rewquirements for this product, albeit a simple process, are still pretty steep. If you are uninsurable for LTC, you will likely have a tough time qualifying for this product as well. One knock out question on the ap is "have you been declined for LTC?"

 

[CALTCAgent]

The UW rewquirements for this product, albeit a simple process, are still pretty steep. If you are uninsurable for LTC, you will likely have a tough time qualifying for this product as well. One knock out question on the ap is "have you been declined for LTC?"

So this product will not get sold very much.

The ones that can get this and can't get traditional LTC will be the market for this, IMO.