Medigap HH / Family Discount

Jun 6, 2016

  1. somarco
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    somarco GA Medicare Expert

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    The HH/Fam discount is becoming more widespread with most of the carriers taking the traditional stance requiring 2 family members insured.

    Recently New Era introduced the fam discount in GA. As their younger spouse comes of age I have applied for the discount. New Era requires re-underwriting the existing spouse before they will approve the fam discount.

    Do any other carriers do the same or do they just go ahead and give both family members the discounted rate when the 2nd spouse's policy is effective?
     
    somarco, Jun 6, 2016
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  2. russelltw
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    russelltw Guru

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    My experience is that it's consider two books of business. One has the old rate w/o the dual member discount. The other book has the new rates with the spouse living in the household discount (family).

    One carrier I have required the client to go back through UW for the family discount.
     
  3. somarco
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    somarco GA Medicare Expert

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    I have had 1 case with New Era, and that's it.

    Older spouse submitted new underwriting app. Older spouse denied so neither got the discount.
     
    somarco, Jun 6, 2016
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  4. vic120
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    I had similar issue with Equitable, Seems dumb The clients felt it was unfair and had me write them up with Aetna together.

    Don't see why have the discount in the first place and then offend clients by not extending the discount when spouse ages in. Seniors will get offended and go elsewhere
     
    vic120, Jun 6, 2016
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  5. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Aetna used to require the spouse that already had their Med Supp to do that for both to get the discount, but now they've changed. The existing policyholder doesn't have to do anything and both get the discount. Just list their name and policy # on the new app and both get the discount.

    Illinois just passed a law that says no discount unless both spouses have a policy with the company to qualify for a HH discount.
     
  6. AllyriaRedbird
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    AllyriaRedbird Expert

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    Manhattan Life in Indiana is the same, just have to be living in the same house, over 60, to get the household discount.

    United of Omaha has it, but who would want to risk both seniors being to unhealthy to switch when the rates skyrocket.

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    :yes:I can see how people would be offended if they had to be re-underwritten to get the discount when the other spouse ages in.

    From my perspective, offering the discount as a special perk on an active policy means they care that the couple remains loyal. Makes sense to me to reward loyalty, and the seniors will tell their friends about the discount if it is significant.

    It makes no sense to make one senior-who is already covered-go through the questions again, because as we all know, sometimes their health has changed.

    Honestly, I never mention the discount. That way it's a pleasant surprise and not a deal breaker.:yes:
     
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