Medicare Supplements: LIke A High Risk Pool?

HealthGuy

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Would love to hear from forum members on the perspective that the Medicare supplement market (vs Medicare Advantage) is similar to a high risk pool, with the eventual problems of many many people on them who are sicker and aging and that they pricing on the existing blocks of business will eventually explode. Somehow, I dont think this opinion is far off as I see my current block of Aetna supplement business price increases becoming ridiculous. I sometimes think I regret NOT selling more MAPD earlier in my career.
 
Would love to hear from forum members on the perspective that the Medicare supplement market (vs Medicare Advantage) is similar to a high risk pool, with the eventual problems of many many people on them who are sicker and aging and that they pricing on the existing blocks of business will eventually explode. Somehow, I dont think this opinion is far off as I see my current block of Aetna supplement business price increases becoming ridiculous. I sometimes think I regret NOT selling more MAPD earlier in my career.
I'd want to see some hard numbers before I came to that same conclusion. I think there's way more people on medigap plans than we may realize. However, it does seem that the mapd plans are becoming much more efficient and competitive, and are gaining market share, but I am coming to that conclusion the same way as you, from my own perspective, without the numbers.
 
Its hard to compete when every other commercial on TV and radio during AEP is pimping all the extra freebies (dental, otc medications, groceries, vision benefits) that every MAPD is now offering. Its to the point of incredibly ridiculous. Im almost to the point that if you can't beat em, join em. I feel like my Medicare supplement biz is a ticking timbomb of explosive rate renewals, regardless of company.
 
Its hard to compete when every other commercial on TV and radio during AEP is pimping all the extra freebies (dental, otc medications, groceries, vision benefits) that every MAPD is now offering. Its to the point of incredibly ridiculous. Im almost to the point that if you can't beat em, join em. I feel like my Medicare supplement biz is a ticking timbomb of explosive rate renewals, regardless of company.


I sell both, However, I don't find med supp hard to compete with commercials at all. Most understand that they are throwing a lot of goodies upfront because they are taking away from the back end. There is always something you are giving up for gym and dental cleaning
 
I agree with the above. This year moved way more older clients to MAPD plans due to the can't beat em join em philosophy.

It gets tiring "defending" a supplement even when people use it and don't have a full understanding of the system .
 
There are some agents who I know who literally don't even mention supplements at all, ever! They sell MAPD from the start and dont even explain the difference at all if ever. I swear most clients never remember the differences anyway, or remember that once they are in a MAPD for over a year, going back to a supplement is subject to medical underwriting. Im stating I'm just tired of swimming upstream. In most markets MAPD is the future, like it or not. I would like others to chime in and disagree with me. When supplements exceed $200 to $300 per month its hard to defend keeping em.
 
The Medigap market is a cesspool of new carriers entering the market monthly. Each one tries to have the lowest rates. At least for today . . .

All the major carrriers and many also-ran's now have subsidiaries they will move into a market once they have reached a point of stagnation with a current carrier. Retire the current carrier. Replace with new carrier. New rates 25% below old carrier.

Rinse, wash, repeat.

Only way to avoid this, at least for now, is put all your business with UHC or BX.

However come 2020 who knows what will happen?

Yes, everyone (or so it seems) is pushing MAPD. No premium. Free dental and eye exams, free weekly car wash, free cable TV. What's not to love.

MAPD is all fun and games until the party is over and your health changes. Then they find out how much all this FREE stuff really costs, and they cannot pick their own doc.

Back to Medigap.

No risk pool. Closest thing is UHC "anyone who can fog a mirror" rates or the Cigna mirror fogging rates.

I currently move 30+ clients per year which is up from fewer than 5 a few years ago. Rates used to be stable and somewhat predictable. Three years when there were only 25 or so carriers writing Medigap in my state life was easy. Now there are 60 and it seems more coming in every month.

In GA we have had Genworth, Aetna, CLI, AHL and now ACI. All affiliated with Aetna and that is just since 2010. Five carriers in 8 years is a lot.

Omaha has only had 3 in that time frame but the current one is getting whiskers. Seems they are overdue for another swap.

I have lost count of how many Cigna derivations we have had. Could be 3. Could be 4.

Folks want original Medicare and a supplement plan so they don't have to follow network rules and can see an out of state cancer specialist if they want.

My block continues to grow every year and I lose more clients to death than rate increases or getting sucked into the pitch for everything free.

Even then I don't lose that many.

Some days it is frustrating but nothing like my days writing U65 mangled care health insurance.
 
Thanks for the input Bob! With UHC I can't do electronic supplement applications, which is incredibly frustrating...You are correct, theres been like 3 or 4 mergers with Aetna biz, buy a block, close a block, and then Aetna raises rates a painful amount! Im tired of the supplement hamster wheel.
 
UHC doesn't need or want agents. Why would they try to accomodate them? If they lost their AAPR endorsement things would be different.
 
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