Medigap changes coming

[Frank Stastny]

As soon as a carrier comes in to my state with a competitive Plan D, I'll be happy to write it and become a "real" agent like you and Frank..

Sman, read my post again. I said nothing about being a "real" agent nor did I even imply that agents across the country should not be selling Plan F. My comments were directed to Midwestbroker, he also sells in Missouri.

Didn't we have this conversation a long time ago or was it with another agent? I've slept since then.

I always put my client's needs first. However, if all their doctors accept assignment (Mike and I have only run across less than five doctors in Missouri that do not accept assignment) there is not a good reason to put them with a Plan F.

Continental Life is my company of choice for Med Supps in Missouri. The premium difference in a Plan D and a Plan F is $641 per year. That is a monthly savings for the client of $42.16 per month or $505.99 per year after they pay the Part B deductible.

What would your take be on agents who only sell and recommend Plan F in Missouri? (Mike, I understand why you were selling F.)

 

[Frank Stastny]

One reason Plans D & G receive lower rate increases than Plan F:

• Clients who buy D & G tend to be healthier causing better loss ratios for the insurance companies. The Plan F block typically has more guaranteed issue members and sick members who want zero out of pocket exposer

With that said, at least 85% of our new annual Medicare Supplement production comes from Plan F. We are seeing more Plan J, but with the changes that may be coming, agents will probably go back to Plan F.

I agree with Rick... Most agents feel that replacing a Plan F with a Plan F is just easier than trying to explain the advantages of changing.
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Where are you getting your stats that show that those who have D & G are healthier and Plan F has more "sick members"? I have been selling Supps since 1993 and have never recommended a Plan F for anyone, not even guaranteed issue. Using your statement above, I must then be selling only to healthier people. Interesting.

Does that also mean that 85% of your production is to prospects that are "sick"? You must be selling in a very unhealthy state.

You stated that at least 85% of new production is Plan F. You might be interested to know that 100% of my new production is Plan D. All that says is that I am recommending Plan D and you are recommending Plan F. I don't think that indicates any kind of trend in the market.

My prospects buy what I recommend, I'm sure the majority of yours also buy what you recommend. I can make a great case and give what sounds like good logical reasons for my prospects to buy a Plan F and then 100% of my production would be Plan F.

I really don't think that you can make the statement that Plan F people are not as healthy as those with a Plan D or G. If you stand by that then please show me national stats that confirm that.

I believe that most agents sell Plan F for of the same reason Mike stated that he was selling Plan F, (except for Sman) it's what his manager told him to sell. And, his manager told him to sell it because it brings in more money especially in Missouri where virtually all doctors accept assignment.

Over the past 15 years it appears to me that the policies that are sold the most are the ones that get the larger increases. I have looked at this numerous times and there doesn't appear to be any other reason.

I do, however, agree with you and Rick. Agents sell Plan F, for the most part, because it is easier to sell unless you are Sman. (Don't jump down my throat Sman, I'm not busting your ass.)

 

[MedSuppPro]

I'm with the Sman -- State variations do exist! We are not lazy, nor a crook, and most of us are real agents.

Real agents put their pants on the same every morning –- one leg at a time. And that includes pompous agents.


In my state, I make about a buck per month additional commission differential by helping my client. So, if I sold 4 policies a year I could fill my gas tank up at today’s prices. Trust me -- I’ll try not to spend my “F” plan profits all in one place.

 

[sman]

Sman, read my post again. I said nothing about being a "real" agent nor did I even imply that agents across the country should not be selling Plan F. My comments were directed to Midwestbroker, he also sells in Missouri.

Didn't we have this conversation a long time ago or was it with another agent? I've slept since then.

I always put my client's needs first. However, if all their doctors accept assignment (Mike and I have only run across less than five doctors in Missouri that do not accept assignment) there is not a good reason to put them with a Plan F.

Continental Life is my company of choice for Med Supps in Missouri. The premium difference in a Plan D and a Plan F is $641 per year. That is a monthly savings for the client of $42.16 per month or $505.99 per year after they pay the Part B deductible.

What would your take be on agents who only sell and recommend Plan F in Missouri? (Mike, I understand why you were selling F.)

You're exactly right Frank. You should sell Plan D in Missouri, if that's what's best for the client. Who could argue those numbers? And yes, we've had this discussion before. It just frustrates me when people condemn someone selling a Plan F when they have no clue as to what's available in other states. That's why you'll never hear me say that EVERYONE should sell a certain plan. I don't know what's available outside my state. You may not have stated that in this thread, but you have before and that's why I brought it up. Maybe I shouldn't have mentioned your name in this last post. Accept my apologies.

I would just caution every Medicare Supplement "expert" to preface those types of comments with the fact that they are speaking specifically about the areas in which they serve.

 

[dandan]

The best Changes for Medigap coverage would be...

1. Eliminate Part C and D plans.

2. Eliminate Standardazation.

3. Require every company to add Prescription coverage in at least on of their plans.

 

[Frank Stastny]

You're exactly right Frank. You should sell Plan D in Missouri, if that's what's best for the client. Who could argue those numbers? And yes, we've had this discussion before. It just frustrates me when people condemn someone selling a Plan F when they have no clue as to what's available in other states. That's why you'll never hear me say that EVERYONE should sell a certain plan. I don't know what's available outside my state. You may not have stated that in this thread, but you have before and that's why I brought it up. Maybe I shouldn't have mentioned your name in this last post. Accept my apologies.

I would just caution every Medicare Supplement "expert" to preface those types of comments with the fact that they are speaking specifically about the areas in which they serve.

I remembered our previous conversation about Plan F and that is why I directed my comments to Mike and did not make a blanket statement like I have done in the past. I don't think I have done that since we talked about it.

If I were you I would also be selling Plan F. You are extremely fortunate to be able to do that and still have your client's best interest in mind.

Apologies aren't necessary, it is really difficult sometimes to communicate like this as opposed to actually having a conversation. I much prefer to actually talk to someone either on the phone or in person.

 

[theinuranceguy]

All I ever sell is plan A... No sleezy insurance agent can ever beat my premium.. ever!

 

[dandan]

Come to think of it, I agree with Me!

 

[Superchief]

So, would I be safe in saying that plan D has the most stable rates of most of the plans?

I'd say so. D & E. I explain it to clients this way. A good company takes rate increases on plans individually - not just across the board. Every agent pushes Plan F because its generally the most expensive. Every company wants agents to push Plan F for the same reason. Most agents will simply tell you that it pays for everything and that puts you at ease so you buy it. Now, because more seniors have Plan F than D or E, whhich one is likely to carry the most claims and therefore take larger rate increases? Then I breakdown the math for them on D & E with the deductible compared to F and the ones that get it say, why in the hell would I want Plan F? I then write up a D on guys, and women generally go for E to get the preventive care. Looks like that is going to change though.

 

[Superchief]

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.

That's exactly why they'd sell them. Try and lock those people into a plan that they can't later replace. If J is unavailable later, then they'll likely stay with their higher rates and not worry about trying to switch. Assuming they get approached by the average Plan F agent.