Medsupp Declines. . .

[BuckNasty]

It definitely sucks to see a med supp app declined. Here in PA, I have been writing a lot of Philadelphia American/New Era as they have a super easy E-App, great rates, quick approvals and almost all polices are being approved. I have also been writing Cigna and Stonebridge. Stonebridge doesnt have an e-app which is a bummer. Cigna does and it is easy to use.

My issue is, however that about half of my Cigna apps are being declined. And these are people that are passing the field underwriting questions. Cigna has also been taking about 30-45 minutes to answer the phone.

I am starting to realize that great rates don't mean squat if the apps can't get through. I would write Philadelphia American almost exclusively, but I have to admit, their comp being 18% vs 21-22% on most other companies makes me feel like I am leaving a bit on the table.

Anyone have any companies they are having good luck getting apps through, that also have decent rates, an E app and good comp? thnx.

 

[somarco]

I would write Philadelphia American almost exclusively, but I have to admit, their comp being 18% vs 21-22% on most other companies makes me feel like I am leaving a bit on the table.

If you are wasting time on Cigna apps only to be declined you could have made it up by using PA.

When New Era cut their commission from 18% to 9% on new biz I still kept writing with them because it was the right thing to do for the client.

MOO is raising comp in several states next year by 400 basis points and that will motivate some to push MOO over other carriers. While the higher comp is nice I will only recommend them when I am forced.

 

[BuckNasty]

I hear ya Somarco, pretty much the only time I am writing the Cigna app (and Stonebridge for that matter) is because Phil American has a 5 year look back on a lot of health stuff whereas, Cignas & Stonebridge is only two years. But you are right, it doesn't even seem to be worth it to even try.

 

[somarco]

Equitable and Humana may not be competitive in your area but both have a 2 yr lookback. Equitable is relatively competitive in GA, Humana not so except on Hi F and sometimes N.

Lately I have been running into situations where Equitable is a better fit and writing 2 - 3 apps a month vs 1 every 3 months. Still not a ton with them, but better than getting zilch.

Have also written a few with Humana even though their app is a bitch.

 

[senior-advisor-indiana]

Most med supp companies are pretty easy to get issued. I'm not a fan of cigna either. They declined my 1st app ever sent and the lady was healthy. Im guessing it was from previous claims history as she was once with CGI.

 

[medsuptage]

Another thing that helps with PA is their rate history. Cigna is brand new and who knows what the future holds. Equitable is changing things up. PA at least has a stable track record so you can likley count on a high retention rate which is something you can't count on with Cigna or Equitable at the moment. Heartland (equitable's sister company) has been having some decent rate increases in other states(over 10%) since they released and their underwriting is almost identical.

 

[Daytona_Guy]

Just had this exact conversation with some agents this morning.

We recently had a Cigna decline because the client answered that yes, he had a high PSA test, but a biopsy found everything was 100% perfect, no cancer, etc. Another was just declined today for taking prednisone for a skin condition. They attributed it to COPD and said she could be reconsidered if she gets a letter from her doctor ruling out COPD, etc. etc.. this is after three weeks of waiting for a decision.

More and more of my agents are complaining about super healthy clients being declined for various reasons that they cannot find covered in the underwriting guide or declinable drug list.

Their inability to ramp up for the season, very slow website updates that require you to call in for the actual status, are frustrating.

Meanwhile, we've been selling the heck out of New Era / Philadelphia American. They make it so easy to get apps in and their website is updated in real time as to the status. That makes it nice.

Their super friendly home office staff, that actually answers the phone, by the way, makes this my favorite company right now.

Equitable has a definite advantage, too, with the 2 year lookback and immediate approval right on the phone with their super easy application process.

I won't consider Aetna or Stonebridge unless there's a very significant disparity in the rates. Their paper process and lack of commitment to any form of technology makes it a pain to create a streamlined workflow for application submission, etc.

It definitely sucks to see a med supp app declined. Here in PA, I have been writing a lot of Philadelphia American/New Era as they have a super easy E-App, great rates, quick approvals and almost all polices are being approved. I have also been writing Cigna and Stonebridge. Stonebridge doesnt have an e-app which is a bummer. Cigna does and it is easy to use.

 

[GreenSky]

Most med supp companies are pretty easy to get issued. I'm not a fan of cigna either. They declined my 1st app ever sent and the lady was healthy. Im guessing it was from previous claims history as she was once with CGI.

Are you saying that since the bypass and liver transplant she's now in good health?

Rick

 

[somarco]

Most of Equitable's business is west of the Mississippi and it seems they have had a stable rate history. Too early to tell what they will do in their expansion states but I feel better about them going forward than I do Aetna or the Duck (which bailed after 16 months).

 

[jdomainer]

Does Equitable even offer a commission if client is on Medicare, under 65/disabled?