Medicare Supplements

[James]

So where to you all stand on AA Vs IA issue plans? When selling MA's here in TN if find some hefty (I mean hefty) premiums being charge for those in their 80's. The highest I think was from United, a couple man 86 (perfect health still maintaing his farm) and wife 83 in good physical health but Alzhiemers setting in but likely will never go to the hospital or spend much time with Dr's office paying over $5,000 easily, place them in a MA. They just could not afford those premiums, while he was still maintaining his farm it just wasn't making money.

 

[sman]

So where to you all stand on AA Vs IA issue plans? When selling MA's here in TN if find some hefty (I mean hefty) premiums being charge for those in their 80's. The highest I think was from United, a couple man 86 (perfect health still maintaing his farm) and wife 83 in good physical health but Alzhiemers setting in but likely will never go to the hospital or spend much time with Dr's office paying over $5,000 easily, place them in a MA. They just could not afford those premiums, while he was still maintaining his farm it just wasn't making money.

Unfortunately here in Georgia all plans are IA with the exception of AARP. So you really don't have a choice. With that said, I'll ride United World as long as they are the least expensive.

In the situation you described, I probably would have left the wife on the supplement and moved the man to an MA plan if he truly couldn't afford the supplement premium. Although, this could be a good opportunity for them to get a lower priced supplement. If someone switches from a Med Supp to an MA plan (and it's the first time they've been on an MA plan), if they cancel in the first year, they can get a guarantee issue Med Supp from any carrier.

While things are different now, I still recall about 10 years ago when Medicare Choice (Part C) was first offered. Many people jumped on that bandwagon and then were let high and dry when the government decided they would reduce funding for it and all the carrier stopped offering the plans. I'm not convinced that it won't happen again.

 

[maryjd123]

Hey you guys

are you remembering to supplement your advantage plans with the continental care product or that gtl??
I have found when i show this to my client -- and do the whole price comparison -- between the advantage plan and the medsup part f or g -- most of the time the advantage plan is the #1 plan ---
now of course that also depends on what state you are in -- it seems everyone is paying out the nose everywhere else besides wyoming!

Mary D.

 

[Frank Stastny]

While things are different now, I still recall about 10 years ago when Medicare Choice (Part C) was first offered. Many people jumped on that bandwagon and then were let high and dry when the government decided they would reduce funding for it and all the carrier stopped offering the plans. I'm not convinced that it won't happen again.

I totally agree sman. I feel that there is entirely too much hype about the Advantage plans by the companies and agencies, just like there was with HMO's. I will say it again "they are not the best for everyone". Just like HMO's, they have their place.

Read the horror stories people have experienced when with HMO's. Are we going to be reading those same stories about Advantage plans in a couple of years?

They are still too new for anyone to forecast their future. In the best interest of my clients I'm going err on the side of caution and recommend that they wait a little longer. They know it is available, they understand the pros and cons and they know that they can call me if they decide to do it.

A client of mine called me today and was very upset. She said "I made a terrible mistake and apologize for not taking your advice". She said an insurance agent convinced her and her husband that they could save "all that money" by signing up with an Advantage plan. (It was all about "the money". They can easily afford a med supp.) She told me "it isn't any good, my doctor will not accept it". She had already cancelled her and her husband's med supps.

Fortunately she discovered this before twelve months had gone by. How many people are not going to discover this until the 13th month or beyond? What about those who travel extensively to other states or are "snow birds"? What about travel outside the US?

 

[Guest]

That's it Frank...we must tailor to our clients. I, too, am still skeptical about the future of MA plans. That is why I will not sell MA to everyone and supplement those "advantage plans with the continental care product or that gtl". MA supplements are way over-rated IMHO.
As for the F plan, Sman, why did my statement make you mad? As I stated, I was referring to the "gurus" I have spoken with that ALL they write is the F plan simply because it is higher premium and they get paid more. It was not a "blanket" statement to all insurance agents who sell F. If you sell F because it works for your clients, good for you. You must look long term also--because F is cheapest now does not mean it won't be the most expensive 2 years from now. In fact, that is what I see every year--F increases more than any other plan.

 

[sman]

That's it Frank...we must tailor to our clients. I, too, am still skeptical about the future of MA plans. That is why I will not sell MA to everyone and supplement those "advantage plans with the continental care product or that gtl". MA supplements are way over-rated IMHO.
As for the F plan, Sman, why did my statement make you mad? As I stated, I was referring to the "gurus" I have spoken with that ALL they write is the F plan simply because it is higher premium and they get paid more. It was not a "blanket" statement to all insurance agents who sell F. If you sell F because it works for your clients, good for you. You must look long term also--because F is cheapest now does not mean it won't be the most expensive 2 years from now. In fact, that is what I see every year--F increases more than any other plan.

Oh I wasn't mad. As for Plan F increasing more than any other plan (I'm assuming you are talking about Plans C, D, E and possibly G, H & I), it's most likely because they don't either cover the Part B deductible or all of the Part B excess. It only makes sense that the most used part of a Medicare Supplement is Part B. Therefore, if it pays out more and the rate increases will be more. Not to mention that the Part B deductible increases each year.

As I said before, there's only about a $5-$6 difference between Plans F & G here in Georgia (with United World). It just makes sense to me to pay the extra $60-$70 and gain the $131 deductible benefit and an additional 20% towards the Part B excess.

 

[maryjd123]

That's it Frank...we must tailor to our clients. I, too, am still skeptical about the future of MA plans. That is why I will not sell MA to everyone and supplement those "advantage plans with the continental care product or that gtl". MA supplements are way over-rated IMHO.



i do understand that everyone is skeptical --- -- i didnt say i sold ma plans to everyone either -- it depends on how much they are paying currently and if they have any chronic health conditions.

you can get a part f plan here in wyoming for 79 dollars a month
a part g i believe is 55 --

either part f or part g -- i would still supplement it with the care product -- it pays home health care where as part f does not -- so if you sign a customer up for the care plan with a part g product -- it can also take care of that deductable....

just my opinion -- its a great supplement to any plan you have either an advantage plan, part f or part g
or just with medicare by itself...