Medicare Supps and ObamaCare

[Don Everest]

Hi guys. New to the forum. Lots of good info on here.

I mostly sell Medicare supps and I am really worried about Obamacare killing my business.

By 2014, do any of you experienced agents think Medicare Supps will still be sold.

Maybe I should get out now. Thanks for the help!

Don

 

[Focus LTC]

Hi guys. New to the forum. Lots of good info on here.

I mostly sell Medicare supps and I am really worried about Obamacare killing my business.

By 2014, do any of you experienced agents think Medicare Supps will still be sold.

Maybe I should get out now. Thanks for the help!

Don

My guess is that Med Supps will still be sold. The question is, what will they look like? And, how is the agent involved?

Will CMS regulate them like they do Advantage? Will MLR apply? Will first dollar coverage be around?

I've read parts of PPACA and some other Medigap proposals, and none of them ever talk about retiree group health plans. They specifically aim to alter Medigap as we know it but never a mention on retiree group health plans.

Talk about class warfare. If you worked for a union or government and get retiree healthcare benefits, then you aren't affected and your Rx coverage is awesome.

If you were a farmer, lived in a rural area, were self employed, or worked for small business then you're screwed. Some of the proposals have Medigap with a $550 Deductible...

In short:
1) Union/Government retiree (Democrat Voting Block) - First dollar coverage, Rx coverage without doughnut hole.

2) Farmer/Self employed/Small business/Rural voter (Republican voting block) - Huge deductibles, crappy part D coverage...

Interesting... Seems to me that PPACA will cost you more if you are in Republican voting block. Barack Obama, the great divider!

 

[Josh]

My guess is that Med Supps will still be sold. The question is, what will they look like? And, how is the agent involved?

Will CMS regulate them like they do Advantage? Will MLR apply? Will first dollar coverage be around?

There are two reasons why it's EXTREMELY unlikely that CMS will regulate Medicare supplements.

First, Medicare supplements are regulated at the state level. CMS has ZERO jurisdiction over how a state chooses to regulate their insurance products.

Second, CMS gets it's power from the fact that the health insurance companies are contracted with them and it's a condition of the contract. Med supp carriers are not contracted with the government and/or receiving money from them, so that kills their control.

 

[sman]

There are two reasons why it's EXTREMELY unlikely that CMS will regulate Medicare Advantage.

Ummm Josh, CMS DOES regulate Medicare Advantage. I assume you meant Med Supps.

 

[Josh]

I fixed that, good call. Your assumption would be safe considering that's what my two points supported.

 

[sman]

I fixed that, good call. Your assumption would be safe considering that's what my two points supported.

Yeah, wasn't much of a stretch to make that assumption.

 

[captain94]

Most Dept of Insurance will regulate medsupps like they did in Ohio to make marketing them along the lines of the Medicare Advantage program. You will start to see it in other states.

 

[Josh]

Most Dept of Insurance will regulate medsupps like they did in Ohio to make marketing them along the lines of the Medicare Advantage program. You will start to see it in other states.

I'm strongly inclined to disagree with you there.

At least one state requires a special Medicare license (one of the Carolinas I think), and to date no other state has followed suit. They did that long before Ohio changed their rules and no one has yet to follow suit. I think Ohio will remain in their own club.

 

[Focus LTC]

There are two reasons why it's EXTREMELY unlikely that CMS will regulate Medicare supplements.

First, Medicare supplements are regulated at the state level. CMS has ZERO jurisdiction over how a state chooses to regulate their insurance products.

Second, CMS gets it's power from the fact that the health insurance companies are contracted with them and it's a condition of the contract. Med supp carriers are not contracted with the government and/or receiving money from them, so that kills their control.

Wake up Josh!

Dodd Frank created the Federal Insurance Office. Slowly but surely they will take over as the regulators of the insurance industry. What better place to start then with Med Supps?

After all, Medicare is a Federal program and seniors are a "traditionally undeserved community." No one can deny that Insurance is interstate commerce.

Just wait and see...

Federal Insurance Office

 

[Josh]

Wake up Josh!

I'm up, I'm up!

I just disagree with you.