Medicare Supplement Plan D

[Frank Stastny]

I just talked to Anthony today, my "answer man", and in the course of the conversation he told me that United World is coming out with a Plan C & D. (They currently do not have a plan D or C)

Since he is already a registered memberof the board, I asked him if he would post the information here on the states it is going to be offered in and when the expected release dates are for the new Plans. I believe he said Missouri will get Plan D in May.

As I'm sure you all know by now, I only recommend Plan D so this is especially good news for me.

Since there are about eleven states involved, I figured it would be better for Anthony to do it than for me to try to, and get it all screwed up.

 

[midwestbroker]

Thanks Frank.

As you know, I am in Kansas City, so I sell in both KS and MO. United World is my main carrier since they have the lowest F plan in KS (D is not available through them in KS).

Most of the people I talk to have F. And most of their friends have it as well. What are you doing to get them off of the "F train" and on to D?

 

[Guest]

I love plan D also but what is the appeal here with United World?

Commissions are only 15% and aren't there better carriers with higher commissions in your area for plan D?

 

[johnrocks]

15% for a sold plan versus 25% for an unsold plan. Sorta like gettin 100% of nothing but seriousl I just try and sell the best lowest cost regardless of my "cut". 15% of $100 is $15 x 12 months is $180 25% of $125 is $31.25 x 12 is $375 or $195 If you get it OR I can add a final expense plan and give them MORE benefit and put and extra $300 (100%) in my pocket for a total of $480

 

[johnrocks]

its also the fact that its a new rate on a new plan without any claims against it-so like the rest of the United World products you wont expect to see a rate increase for about 5 yrs.

Excellent point or very low increases worse case scenario.

 

[Guest]

That is a good point. Although I usually see the increase sooner, more like 3 years.

 

[Frank Stastny]

Thanks Frank.

As you know, I am in Kansas City, so I sell in both KS and MO. United World is my main carrier since they have the lowest F plan in KS (D is not available through them in KS).

Most of the people I talk to have F. And most of their friends have it as well. What are you doing to get them off of the "F train" and on to D?

1. Pointing out that 99.9% of doctors now accept assignment and that is no longer a valuable benefit. (At least that is what I have found in talking to my clients here in Missouri.)

2. Plan F does not have "At home recovery", Plan D does. A $1,400 benefit.

3. When every company I represent has a premium increase, Plan F always gets a larger increase than Plan D. (When Continental had their last increase I believe that Plan D went up about 9% and Plan F went up 25%)

4. After I explain all of that then I show them the difference in premium between Plan D and Plan F.

That's when they pick up their pen and ask where to sign.

If I call a prospect that has a Plan F, I can almost count on writing an app for that person. I don't give them an option. I tell them that Plan F is not a good investment of their premium dollar and if they insist on a Plan F, that they should take it with another agent and call me in a year when they realize that Plan D is a much better policy. I have gotten a lot of referral business from their friends who also have Plan F.

You are the expert, don't be afraid of losing them by recommending a Plan D. You are the one who knows what you are talking about, not their friends who also made an emotional decision as opposed to an intelligent, well informed one.

If they still aren't convinced, I tell them that all agents work on straight commission. The more expensive a policy is, the more money the agent makes. I then ask them if they now know why the agent wrote Plan F for them and told them it was the "best one".

I'm not suggesting you roll all of your F's into a D, but before you put them with a different company you may try suggesting they switch to a Plan D if they can answer the health questions. (Leave out the last comment I suggested if you are switching them. haha)

You will write a lot more business and won't have to go chasing your clients to put them with another company every time there is a premium increase.

 

[Frank Stastny]

thanks Frank.. I guess I jumped the gun and started a new thread on it.. I have the states listed there, its still not set if they will all be effective on the same date or not yet-I will keep you posted on that..

Sorry buddy. Guess I'm the one who wasn't "quick enough on the trigger". Need to practice my "fast draw" some mone. Never know when the bad guys might ride into town.

Thanks for taking the time to keep us informed.

 

[sman]

thanks Frank.. I guess I jumped the gun and started a new thread on it.. I have the states listed there, its still not set if they will all be effective on the same date or not yet-I will keep you posted on that..

Didn't see the great state of Georgia listed. That's too bad. As we are having a rate increase in June. The greater metro are rates are increasing 12% and the other areas are only increasing 3% (these are for Plan F). They'll still be about the cheapest in most areas for Georgia. It will be interesting to see how much cheaper Plan D will be. Right now, the cost difference between F & G is about $60 per year. So it makes since to go with F.

 

[policy doctor]

I've been selling Plan D and G for years, depending on the rates offered for the client in their zip code. Actually, C-G are good choices depending on area and what client can afford.

In metro Atlanta, many specialist doctors are not taking assignment, so those clients are better off with excess charges being covered, if the premium is not out of line.

Mutual of Omaha is raising their rates....a client called to say her premium was jumping from $150/m0 to $165 for plan D. She called AARP and for plan F it's $150/mo. Since she has MOA, i can't switch her to United World, but i have another carrier who can offer a lower premium than either of the above. The point here is that some clients will jump ship to save premium, even if they like the agent. COLI is getting high for many.