Medigap changes coming

Apr 17, 2008

  1. policy doctor
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    This market is tightening up. Get more contracts.

    In the largest modernization of Medicare Supplements since they were standardized in 1990, the National Association of Insurance Commissioners recommended last month that Plans E, H, I, and J be eliminated.


    [FONT=Arial Narrow,Arial MT Condensed Light,sans-serif]The under-utilized Preventive Care benefit, which was previously offered only in Plans E and J, is eliminated in recognition of the change in the Medicare program over the years to include significantly more preventive care benefits. The 80 percent Medicare Part B Excess benefit, available in Plan G, is also changed to a 100 percent coverage benefit.[/FONT][FONT=Arial,Helvetica,sans-serif]


    [/FONT]
     
  2. rapidrobert
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    I never sold any of those anyway... F is hot now in my State and used to be G (now then that will make G and F practically identical- 80% to 100%).

    Does anybody really sell a lot of those plans?
     
  3. senior-advisor-indiana
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    I know captive agents sell alot of those plans.
     
  4. midwestbroker
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    F, C and a little G

    That is about it
     
  5. senior-advisor-indiana
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    From most to least, I sell D,F,E
     
  6. Frank Stastny
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    Frank Stastny Guru

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    Why would you sell "C"? Of all the plans available that has to be the biggest rip-off.

    In an earlier post you also confirmed what I have experienced in selling Med Supps around the state and that is that each of us have only found a couple of doctors who do not accept assignment. Why in the world would you sell Plan F to your prospects? Plan F is substantially more than Plan D and even G with most companies.

    Are you doing it simply for the commission or because you can say "everything is paid" and don't have to explain the Part B deductible? Any agent who sells Plan D and knows Medicare can follow behind you and roll those Plan F's with ease.

    Just about all the Med Supps I sell are to people who have been convinced that they "have to have" Plan F or they are "putting themselves at great financial risk". That they "must pay" that extra money each month for no additional benefits other than having Part B deductible paid.

    Plan F does not have the At Home Recovery provision either that plans D and G have.

    I use to work the KC area, I may start again if agents there are selling F's. I just can't bring myself to sell a Plan F when I know all their doctors accept assignment.
     
  7. InsuranceJosh
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    InsuranceJosh Super Genius

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    Where did you get this info?
     
  8. midwestbroker
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    Frank -

    Most of my sales have been plan F. The main reason is that early in my Humana days, that was my training into Med Supps (Sell F). A lot of my supp sales were referrals and they wanted the same coverage as their friends.

    Then I realized that G was a better deal, but most people I talked to already had F and just wanted to save some premium. I was not so well versed then to show them the light.

    D is not offered with United World over in KS (where I have sold the most supps).

    C was in the mix we well because I was replacing some other supps and they wanted the same coverage.

    However, now that I am wiser, I picked up some other supp carriers who offer D (Standard life, ANTEX, and I dusted off BCBS).

    This board has been the best training I have had on supps since I was always in outfits where MA plans are their #1 focus.

    Frank, if you do make it out here, we'll do lunch (your treat...just kidding).

    So, would I be safe in saying that plan D has the most stable rates of most of the plans?
     
  9. policy doctor
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    I just wanted to give everyone the heads up on what NAIC has recommended. This has to go thru Federal approval before states can enact this. I found this article on the NAIC website. Just search a little.

    I found this confusing because AARP and Todays Options are encouraging sales of Plan J..what's the point if they are slated for the obsolete block.

    Oh well...later
     
  10. Frank Stastny
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    In my experience so far with companies that don't do the same increase across the board for all the plans, D and G have gotten the smallest increase.

    A couple of years ago Continental Life increased their F plan by 25% and D only went up 9%. Not only do I feel that D is a better plan for Missouri, your clients will keep it longer because of the small increases. My clients don't bat an eye at an increase that is less than 10 or 12%.

    It would be my pleasure to buy you lunch, provided we can take the afternoon to do it. :yes:
     
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