Mutual of Omaha is Being Investigated??

[davidleekline]

One of my clients emailed me the following "I was told by two different agents that Mutual of Omaha is being investigated by Congress because they low-ball you when you first take out the policy and then up it quite a bit come your next birthday. Is there any truth to that????"


Is anyone aware of an investigation?

Thanks

 

[Crabcake Johnny]

Sounds like pure kaka.

 

[medsuptage]

That was probably their attempt at stealing your clients.

It is possible I guess, however putting down another company to gain a client doesn't seem beneficial to me.

 

[coachd]

I am told that some states are looking into the last rate increase. I have not seen the Feds doing this. I would love to see an article on that if they do.

All companies have issues at times. MOO here in IL is really low and it could not stay that way.

 

[houcoogster]

Sounds like pure kaka.

Lol,
MoO has been in the game a long time, competition needs to toughen up and stop crying and running to daddy when they get their @ss kicked.

 

[Russ]

I've been in the supplement market since 1987. I've never seen what MoO just did. Mutual of Omaha just took a 200% increase in rates on disability supplements for new business in Florida. Yeah...I know...they don't want the business, but $1,038 a month for a disabled male...non-smoker...in my area.

I love the company but maybe I need to back away some from them. They just got an A+ rating again, but....they've gone up twice in Florida now in the last few months.

I have no knowledge of them being investigated.

 

[coachd]

Yea, I am backing away from them as well. I like them, but they rate jumps have been high.

 

[MedSuppPro]

... Mutual of Omaha just took a 200% increase in rates on disability supplements for new business in Florida.

Where was the infamous FLA Dept of Ins on that one?

All MedSupps have MLR and it is up to the states to approve (rubber stamp) or disapprove a rate hike. Read the original filling and they may have some lamo excuse for their 200% increases.

 

[Russ]

Where was the infamous FLA Dept of Ins on that one?

All MedSupps have MLR and it is up to the states to approve (rubber stamp) or disapprove a rate hike. Read the original filling and they may have some lamo excuse for their 200% increases.

I looked for the rate increase on the FL. DOI but I never found it.

I'll look again now.
...........................................................................................

I found it. Filing #10-19849. They were applying for a 219% increase on disability supplement applications in Florida. FL DOI gave them a 200% increase.

Claims experience is their reason for that much of an increase. Alonzo Mourning act had something to do with it in Florida. There was a 6 month OE period for anyone on disability Medicare in Florida when that act went into effect.

 

[alldaytuesdays]

Dems leaders urge HHS to crack down on Medigap rate hikes - The Hill's Healthwatch

Probably referring to this "article" from October or one of several more like it that are out there. We've had clients and prospects mention the same thing. It's certainly not an investigation, but will definitely be portrayed as such by some of the captive-agent companies.