Mutual of Omaha Rate Increase Hits 10%

somarco

GA Medicare Expert
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Atlanta
Most of the recent MOO Medigap rate increases have held to just under 10%, coming in at 9% or 9.5%.

Why not 9.9%?

Now they finally crossed into double digit increases with 10% for new and in force United of Omaha plans in Utah. New rates effective June 1, 2016
 
I am curious why almost all your posts are about Mutual of Omaha ?

For an agent who who claims to never sell them you sure seem to have some kind of crush on them almost stalker like. What's a matter did they turn your contract down
 
In Missouri, with our anniversary rule, we have seen their plan F take 6% and plan G take 0% every year since 2012, this year 9% for both. Very reasonable in this market, IMO.

That's right, our G has not changed price since 2012. That is a 2.25%/year. I don't want to hear one client bitch about that. Of course, last year's plan G enrollees will have a platform to raise concern and request a solution.
 
They have some of the HIGHEST rate increases among ANY medigap carrier

This is true.

Surprised how many agents are completely unaware of the shell game they play, how they give massive increases on closed blocks, and how they raise rates on in force (legacy) policyholders in order to subsidize lower rates for new business.

Also, a lot of agents seem oblivious, not only about what they have done in their own state, but what is happening in other states. It's as if they think they are immune to what is most likely going to happen to their client base.

Here in GA the carriers that have increased rates this year have been in the 4 - 6% range.

OIC is 9% across the board (new business and legacy) for July. This follows a 6% increase for A and F effective October, 2015.

Maalox, feel free to block my posts if they annoy you.
 
This is true.

Surprised how many agents are completely unaware of the shell game they play, how they give massive increases on closed blocks, and how they raise rates on in force (legacy) policyholders in order to subsidize lower rates for new business.

Also, a lot of agents seem oblivious, not only about what they have done in their own state, but what is happening in other states. It's as if they think they are immune to what is most likely going to happen to their client base.

Here in GA the carriers that have increased rates this year have been in the 4 - 6% range.

OIC is 9% across the board (new business and legacy) for July. This follows a 6% increase for A and F effective October, 2015.

Maalox, feel free to block my posts if they annoy you.


You could at least get your facts right.

OIC GA only has 3 years of rate history.

............ Plan F ... Plan G
2014 ... -5.0% .... -10.0%
2015 ... 6.0% .... 0.0%
2016 ... 9.0% .... 9.0%


2 year average ... 7% ... 4.5%
 
You could at least get your facts right.

OIC GA only has 3 years of rate history.

............ Plan F ... Plan G
2014 ... -5.0% .... -10.0%
2015 ... 6.0% .... 0.0%
2016 ... 9.0% .... 9.0%


2 year average ... 7% ... 4.5%

That's the point...they only have 3 years of rate history because they keep "closing" one company,then opening another with lower rates. So the healthy (insurable) people get to move to the company with the lower rate. But the uninsurable are stuck with the old company, who just happens to have high claim dollars, which they can use to justify high premium increases to the DOI's.

And you must not read much, because Somarco posts way more than just about MOO.....
 
It is a bit frustrating. However, that's their business model. They make a bulk of their money in the latter years of policy ownership, im assuming, because if they were making much in the early years, the competition would figure it out and do the same. But rather the competition is starting to replicate that model (cant beat them, join them). The others, like bcbs, start out higher and go up much slower. Correct me where Im wrong.

I have some customers on the old MoO book that I could save money, but they have been so happy with the coverage, and they can afford the premium increases, that they stay where they are. However, I did have a lady finally give in last week. Wrote her F nearly 6 years ago, up to $282, got her down to $150. She did repeatedly tell me she loved the coverage though.
 
Maalox, you must work for CSG. Your calculations are the way they do it, which is completely useless.

If it will make you feel better, I can provide rate increases on United World and United of Omaha as well. That way you can understand what the Omaha carriers are doing to their policyholders.

It isn't a pretty sight.
 
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The others, like bcbs, start out higher and go up much slower. Correct me where Im wrong.

.

That's exactly what BCBS looks like. They just passed out a decent (7%) increase for the first time in 3 (4?) years. I contacted my clients, let them know they could save some money if we switched and about 90% said "No, I'm good. 7% isn't much, I love the coverage and I want Blue Cross"
 
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