Medicare Disadvantage

[Winter_123]

Getting closer to the predictable here. The price difference is eroding between MA and supps. It also relieves the government of getting into the business of trying to eliminate medicare advantage and fight with seniors about it, etc. They will just continue to reduce the subsidy and price them out of the market but let carriers offer what they can for as long as they can. I havent checked humana's stock lately but they are the most heavily dependent on MA, gotta believe it will take a big hit or has recently.

Medicare Advantage Premiums May Rise $40 to $70 Monthly in 2010 - On Health and Money (usnews.com)

 

[moonlightandmargaritas]

Humana's stock has actually gone from around $20 to $29 over the last month....

 

[theinuranceguy]

By Far the funniest thread title I have read in a very long time!

 

[Bob_The_Insurance_Guy]

If you were to get rid of MA's, what would you offer in their place? It is clear that some people like the pay as you go system, with the lower premiums.

Do you not want competition for Med Supps?

The key to realize is MA's are not for everyone, and they do fill a niche, wouldn't you agree?

 

[Justin Bilyj]

what niche would that be for MA's?
what niche would you categorize those you want med supps?

 

[Winter_123]

Humana's stock has actually gone from around $20 to $29 over the last month....

Quite so but it was at 40 or so in February. It is an understatement to say that everything is relative these days. You see a stock that has gained 400% in the last couple months and it sounds zippy but in fact it is only trading at 4-6 bucks compared to a dollar a couple months ago and at this time last year it may have been worth 56. If one truly is bottomfeeding then the 400% is of course real, but if you aint, it aint.

Anyway, I think Humana will take a hit for the government announcement of subsididy cuts but that may have already been reflected in the February drop based on speculation/information.
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If you were to get rid of MA's, what would you offer in their place? It is clear that some people like the pay as you go system, with the lower premiums.

Do you not want competition for Med Supps?

The key to realize is MA's are not for everyone, and they do fill a niche, wouldn't you agree?

We are not necessarily in disagreement. I am merely pointing out that the pay-as-you go- lower-premium advantage diminishes when the price differential diminishes. In my state, this week you can get a Mutual of Omaha Plan J for 137/month (all ages, community rated). You take an AARP medicare complete for 58/month and put a 50 or 70 dollar increase on top of that and now what does it look like compared to the supp? Maybe if next year the person is looking at a plan for 50/month that was previously a zero premium then there is something to talk about. I am just saying it changes the dynamics without regard to how I may or may not feel about MA's. It is what it is.

 

[jacobtn]

The key to realize is MA's are not for everyone, and they do fill a niche, wouldn't you agree?

ha! this made me laugh. MA's were a disaster from the beginning, and are becoming even more of a joke now with their rising prices, falling CMS subsidies, etc.

not to mention all the crap with agent levelizing of commissions, SCOPE garbage, etc. I'll be happy when they are abolished. You must be a captive agent with your head in the sand. Last I heard they were still getting paid, unlike us independent brokers.

 

[Bob_The_Insurance_Guy]

Jacob,

Obviously, you don't know who I am.

 

[GreenSky]

After selling MA's for the past few years, I hardly wrote any this season. I am very happy to go back to writing some Medicare HMO plans and a bunch of supplements.

As I type this, I have asked for a re-design and optimization of my CA Medicare plans website in anticipation of the rush of buyers next October.

Rick