Medicare Supplement Plans Prior to 1980?

[thomasm]

I've been reading up on the history of Medigap.

Seems like the earliest history I can dig up goes back to 1980, when the Baucus Amendment was implemented.

But I remember reading about one the carriers stating they had developed the first Medicare Supplement plan shortly after Medicare was enacted in 1965. I think it might have been MoO.

Anybody have any idea how those plans worked compared to the "standardized" plans we have now?

 

[Amarillo Agent]

Sold my first Medicare Supplement with Union Bankers in 1978. Much like the plan F sold today. One big difference was the commission. 40% first year, 10 year renewals for as long as business stayed on the books.

 

[somarco]

Equitable L&C claims to be the first to write Medigap. Not sure if that is true or not.

Bankers Fidelity has been writing for 35 yrs according to CSG. And CSG shows Equitable in the market for 49 years.

Plans were standardized in 1992.

FWIW anyone that bought an Equitable plan 49 years ago, or Bankers 35 years ago, is probably no longer paying premiums. If they are, my guess is they are not insurable.

 

[russelltw]

Here is one I found in my grandparent's farm ledger the other day. Written in 10-1-1976

 

[DS4]

There was no limiting charge on Part B. It was quite common to have a surgeon charge $2000. Medicare would pay 80% of $600. The med supp paid 20% of $600. The insured paid the difference. Many insureds had multiple med supps. United American & Pioneer Life ruled the nation. 60-70% first year commission was common.

 

[rousemark]

There was no limiting charge on Part B. It was quite common to have a surgeon charge $2000. Medicare would pay 80% of $600. The med supp paid 20% of $600. The insured paid the difference. Many insureds had multiple med supps. United American & Pioneer Life ruled the nation. 60-70% first year commission was common.

United American had a plan that paid excess part B charges and paid for a year in a skilled nursing facility. In those days, you could compete on more than just premium..

 

[thomasm]

Sold my first Medicare Supplement with Union Bankers in 1978. Much like the plan F sold today. One big difference was the commission. 40% first year, 10 year renewals for as long as business stayed on the books.

That commission must've been awesome! I assume it required more of a sales pitch back then, compared to now.

 

[thomasm]

Here is one I found in my grandparent's farm ledger the other day. Written in 10-1-1976

Great find! I bet that ROP Accidental Death Benefit was used a "sales clincher"! Haha!

 

[jemelton]

That commission must've been awesome! I assume it required more of a sales pitch back then, compared to now.

But what were the premiums though? Also, cost of care was so much less than it is today....

 

[Chazm]

Prob $30/month lol