MedSupps in Crosshairs

[MedSuppPro]

Thanks Winter for this must read article;

National Journal Online - Medicare Cost Sharing

 

[moonlightandmargaritas]

A comprehensive $525 annual deductible for Medicare, and annual out-of-pocket ceiling of $5,250 would effectively end the Medicare supplement business.

 

[policy doctor]

Not so fast. They still have Part B expenses and even tho there is a cap, some folks don't want that exposure. Of course, premiums would be adjusted down.

When I first started selling med supps in 1977...The premium for a med supp was like $150 and their annual Part A deductible was $125. Part B paid a full 80% on medical expenses. Underwriting was a breeze, unless uninsurable conditions. The usual suspects.

Folks would protest, why do I need a med supp? retort...for your medical.

Looks like we are retroing to where we started, if this passes. Means LTC will make more sense, and pick up too!!

 

[bourbonlegend]

It sounds like they are referencing the new medigap "M" and "N" plans. Correct me if I'm wrong but isn't "M" going to pay "HALF" of the part "A" deductible which comes out to around that $525?

We are in for some changes for sure but I'm not worried yet. One thing will never change = Politicians NEED the senior voting block to win an election.

 

[moonlightandmargaritas]

Not so fast. They still have Part B expenses and even tho there is a cap, some folks don't want that exposure.

Why would it make any sense for someone to buy insurance on a risk that's a maximum of $5,250 per year?

Something has to be done about over-utilization.

 

[MedSuppPro]

Why would it make any sense for someone to buy insurance on a risk that's a maximum of $5,250 per year?

I agree. Knowing this market it will kill sales of MedSupp's and increase sales of MA's. (this statement should produce a firestorm of anger...)

Look if my client has to pay say $100/month for a partial MedSupp with a max payout of $5,250 vs. a MA plan with zero premium, predictable copays, and a MOoP of $3,000. -- Dah!!!

And for all you doubters here's an example:​

I have a client who paid $250. / month for her American Republic policy. She wanted the MA plan that her sister had for $16.00 per month. She was in perfect health. Was...

She goes to a restaurant and gets a bad case of C-dif. Ends up in a comma for 3 months in the hospital and months of rehab center (nursing home). This past week she sent me one of her bills for one of her 3 hospital stays. It has got to be one of the best examples of MA performance I've ever seen.

Total charges for just about every known test and treatment known to man was $ 27,000.00. Her portion due: $350.

I know that all of her charges thus far is in the $280,000.00 range. With her MOop of $3,000. she still smells like a rose.

 

[GreenSky]

With her MOop of $3,000. she still smells like a rose.

On Medicare and hospitalized for 3 months. Don't think she actually smells like a rose.

Obama has already said he wants an out of pocket cost that people can afford. That likely means $2,500-3,000. It's only fair that this includes Medicare.

Soon we can have people turn in their clunker insurance policies and receive $4,500 back from the government.

Rick

 

[policy doctor]

Why would it make any sense for someone to buy insurance on a risk that's a maximum of $5,250 per year?

Because if it's chronic, that 5250 doubles next year, and more after that unless they croak or heal. Just snowballs.
The premium and commission will be deciding factor if we will sell these products. The profit in these has already hit the Law of Diminishing Returns. $16-20/month/app...laughable.

That's why they do advances....

 

[b-insure]

The gov't would have to factor in the cost of creating a MOOP for traditional Medicare. That will cost a lot of money to pick up the additional 20% after the first $3000-$5000 or so MOOP(depending on what they would decide). It will not translate into the tens of millions of savings as the article suggests. There would also be plenty of companies that would lobby against these changes very hard. Main company being Obama's beloved AARP (I thought he was getting paid to advertise with them on the last national town hall). Med. Supp. companies would still be able to market plans that would cover deductibles and additional medical costs. The article suggests that the gov't would restrict companies from offering plans, solely to keep people from overutilizing their healthcare. Does anyone know what type of outrage that would create?

 

[MedSuppPro]

Soon we can have people turn in their clunker insurance policies and receive $4,500 back from the government.

Rick

I knew somebody would pick-up on the Cash-For Clunkers Money Tree theme.

I know Frank has a couple of microwaves in his clunker... he told me that he's waiting for the Cash-For-Nukes Program. I understand the Homeland Security people are looking for him.

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