Missouri GI and the Modernized Supplements...

[G.Gordon]

Here's an email I sent to the state for clarification. It seems some agents are using scare tactics about plans being "eliminated" or changed and "You better be on the right plan"... all BS, but it got me to thinking. Does anybody really know how this will effect policy holders in our unique situation? I know a person can keep what they have, but you have to face reality that sooner or later change is needed.

To: Life and Health
Subject: medicare supplement changes 6/2010
Comments: I am an independent agent that focuses on the senior population. Currently I have ~xxxx seniors that depend on my knowledge. One thing that is not clear as of yet is how the changes to the medigap market 6/2010 will be combined with the Missouri GI law for current medicare supplement policy holders. For example if a current beneficiary has plan E or G and E is eliminated he can keep the E he has, but what about his GI right to get another E on his anniversary? There will be no E's offered after June so what will his options be? For Plan G they eliminate some benefits, but they also increase a benefit. The law states Like plan to like plan... well the old G will not be "like" the new G. How will those beneficiaries be effected. Thanks.

 

[JMO Fan]

Look at pp 1805+ here: http://www.sos.mo.gov/adrules/moreg/current/2009/v34n17/v34n17a.pdf

 

[G.Gordon]

Read that from 1805 to the end and didn't see what I was asking about.

 

[Frank Stastny]

Read that from 1805 to the end and didn't see what I was asking about.

I've got the flu and feel like crap but I also read it and didn't see anything that addressed it. I just figured that I missed it.

Maybe he will direct us to the part that addresses your specific question.

 

[allhealthandlife]

Here's an email I sent to the state for clarification. It seems some agents are using scare tactics about plans being "eliminated" or changed and "You better be on the right plan"... all BS, but it got me to thinking. Does anybody really know how this will effect policy holders in our unique situation? I know a person can keep what they have, but you have to face reality that sooner or later change is needed.

To: Life and Health
Subject: medicare supplement changes 6/2010
Comments: I am an independent agent that focuses on the senior population. Currently I have ~xxxx seniors that depend on my knowledge. One thing that is not clear as of yet is how the changes to the medigap market 6/2010 will be combined with the Missouri GI law for current medicare supplement policy holders. For example if a current beneficiary has plan E or G and E is eliminated he can keep the E he has, but what about his GI right to get another E on his anniversary? There will be no E's offered after June so what will his options be? For Plan G they eliminate some benefits, but they also increase a benefit. The law states Like plan to like plan... well the old G will not be "like" the new G. How will those beneficiaries be effected. Thanks.

Policyholders can keep their plan J,E etc they just won't be sold anymore.As far as downgrading med supp within the same company their isn't any underwriting - at least in Florida

 

[InsureGuy5]

As far as I understand GI in Missouri for Medicare supplements - you can move from like to like or like to lesser. So what amounts to lesser will determine your answer.

My suspicion when talking with the insurers is that most will allow those whose plans are being phased out to take an F Plan.

 

[Frank Stastny]

As far as I understand GI in Missouri for Medicare supplements - you can move from like to like or like to lesser. So what amounts to lesser will determine your answer.

My suspicion when talking with the insurers is that most will allow those whose plans are being phased out to take an F Plan.

In Missouri, when writing a GI policy, the agent must write the same exact plan, writing a "lesser" policy is not permitted.

We have no idea what companies are going to let agents write, in Missouri, if it is GI and the plan they currently have is no longer going to be available.

 

[GreenSky]

It will be interesting because in CA, you can move to the same or lesser plan once a year. Plan N will have reduced benefits compared to F so one might think it's a lesser plan. However, you cannot currently go from F to G because someone can't figure out what "lesser benefits" mean.

Rick

 

[G.Gordon]

Missouri is "like plan to like plan". Companies can go beyond, but that is the min. standard. I've had companies offer GI plans to those on prestandard, Plan F to C or G to D, etc.. But like I said that was at the companies willingness to do so.

What I want to know is what is going to be required for those people. What will be the minimum requirements. Not what someone thinks.

I had a very deep conversation with a girl with Missouri's CLAIM service. They are a service program helping folks deal with insurance issues. They have some link to the DOI, I think. They (I talked to a couple of them) thought it to be a well thought out question and to the best of their knowledge they didn't have a clear guideline yet.

 

[G.Gordon]

The "official word".

Mr. Brown,
The revisions to the Medicare supplement rule are now published in the Missouri Register. In order to keep this provision of Missouri's rule, we added language to the "annual guarantee issue" provision that states:

"4. Paragraph (12)(B)8 shall include any Medicare supplement policy offered by any issuer, but only a policy of the same plan as the coverage in which the individual was most recently enrolled, if available, or, if not so available due to changes in the Medicare supplement plan designs, a policy with a benefit package classified as Plan A, B, C, F (including F with a high deductible), K, or L."

We will consider "old" Plan G and "new" Plan G to be "a policy of the same plan as the coverage in which the individual was most recently enrolled..." under interpretation of this section. I'm sure as time goes on, there will need to be clarifications issued by the Department on some of the changes, and this may need to be one of them. I'll add that to the list of things to discuss, but I feel confident you can continue to view this provision the same as in the past, except for those persons whose plan was completely dropped from the Medicare supplement program. They will qualify for those plans listed.

John Howser
Insurance Product Analyst III
Senior Products
(Long-term care, Long-term care Partnerships, Medicare Supplement)
Life and Health Section
Missouri Dept of Insurance, Financial Institutions & Professional Registration
Telephone: 573-751-1713