Medicare Supplement Rate Increases

[Justin Bilyj]

Is there an easy way to find out how many and when medicare supplement companies have raised their rates as a whole in a given area, state, county?

I don't want to recommend a company that has had high rates traditionally, then lowered them, only to raise them high again.
Appreciate any assistance.

 

[sman]

Is there an easy way to find out how many and when medicare supplement companies have raised their rates as a whole in a given area, state, county?

I don't want to recommend a company that has had high rates traditionally, then lowered them, only to raise them high again.
Appreciate any assistance.

No easy way to get that info. Especially since virtually every carrier has a new block of business which started in June 2010.

You can rest assured that any Mutual of Omaha carrier will come in with low rates and eventually increase to the point that they are no longer competitive. When that happens, it won't be long before they come in with a new carrier with lower rates. The one carrier who seems to be consistently in the single digit percentage rate increase is AARP. Even prior to June 2010. However, they aren't that competitive here, so it really makes no difference that they have single digit increases when their premiums are higher than many of the other carriers. New Era has had single digit rate increases the past two years here, but that's a short history so it's hard to tell if it will continue that way.

It's been my experience that I have to change most of my clients every 3-4 years due to the rates getting higher and a new carrier coming to market which is cheaper. It may be different in your state.

 

[Frank Stastny]

It's been my experience that I have to change most of my clients every 3-4 years due to the rates getting higher and a new carrier coming to market which is cheaper. It may be different in your state.

Correct, there is no easy way to get that information. Sometimes I will just call a company and ask them.

I will not call as an agent, I will say my mother is going on Medicare and has asked me to get the information for her. They always spill their guts to me and send me information. It's the concept of keeping your friends close but your enemy's closer.

However, rate increases are the life blood of the Med Supp business. I embrace rate increases, without them I would be out of business.

I also agree that 3 to 4 years is about as long as I'm going to keep a client with a policy.

Rate increases are based on claims. Past increases very seldom will indicate increases for the future.

 

[billyg]

Is there an easy way to find out how many and when medicare supplement companies have raised their rates as a whole in a given area, state, county?

I don't want to recommend a company that has had high rates traditionally, then lowered them, only to raise them high again.
Appreciate any assistance.

The old adage "past performance may not be indicative of future result" is as true here as it is with mutual funds. Even companies that have a "good" history of lower than avg increases may come out with huge increases. I always warn my clients up front that this can happen, and that's why its so important for us to stay in contact, so we can switch companies when appropriate.

I want them to understand that the insurance carrier may not be their carrier for life, but I will be their broker for life.

 

[Justin Bilyj]

"I want them to understand that the insurance carrier may not be their carrier for life, but I will be their broker for life."
Thats a good quote Billy...

 

[Frank Stastny]

I always warn my clients up front that this can happen, and that's why its so important for us to stay in contact, so we can switch companies when appropriate.

I make a special point of telling clients that the premiums will increase regardless of what company they have their policy with.

I also tell them that I'm an independent insurance agent who can represent all of the companies in the state. That I will continually monitor the industry and will let them know when increases are going to take place and when necessary move them to another company.

I always let them know about increases before they hear it from the company.

The biggest mistake I see agents make who work the senior market is that they never stay in contact with their Med Supp clients. It is so much easier to spend a little time staying in contact with them than it is to lose them and have to replace them.