Need Advice: Med Supp and Residency Question...need an Answer!!!

windi

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Scenario:

Met with a lovely couple yesterday afternoon who own a house here in Illinois. About halfway through the meeting, they tell me they aren't actually Illinois residents, but Florida residents. They spend 6 months and 1 day in Florida, at a house they own there. They have a Florida license that is only good in Florida (not sure how that works) But they ALSO still have their Illinois Licenses. They own the house in Illinois, but they do NOT pay Illinois State taxes, and they vote nationally as Florida residents.

Am I even allowed to sign them up for a med supp? Or do they have to do it in Florida, with someone who is licensed in Florida. They want to get this done before they go to Florida in a couple of weeks, and want to write with me because I took the time to come out and explain it all to them. His Medicare starts April 1, because his birthday is May 1st. I would obviously love to write them a supp, because his wife turns 65 next year, but I don't want to get into trouble!!

What to do???
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Which residence do they use for their federal tax return?
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Scenario:

Met with a lovely couple yesterday afternoon who own a house here in Illinois. About halfway through the meeting, they tell me they aren't actually Illinois residents, but Florida residents. They spend 6 months and 1 day in Florida, at a house they own there. They have a Florida license that is only good in Florida (not sure how that works) But they ALSO still have their Illinois Licenses. They own the house in Illinois, but they do NOT pay Illinois State taxes, and they vote nationally as Florida residents.

Am I even allowed to sign them up for a med supp? Or do they have to do it in Florida, with someone who is licensed in Florida. They want to get this done before they go to Florida in a couple of weeks, and want to write with me because I took the time to come out and explain it all to them. His Medicare starts April 1, because his birthday is May 1st. I would obviously love to write them a supp, because his wife turns 65 next year, but I don't want to get into trouble!!

What to do???

They have Illinois licenses, an Illinois residence, an Illinois mailing address, and are currently in Illinois.
Write them the Supps.
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Which residence do they use for their federal tax return?

Good Question. I know they don't pay Illinois taxes, and instead pay Florida state taxes, so I would imagine Florida?

I can't imagine how it would come back and bite me, since they own and live in Illinois as well, and if they hadn't told me, I would have absolutely no way of knowing......

but, I'm new at this, and don't want to screw up!
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Good Question. I know they don't pay Illinois taxes, and instead pay Florida state taxes, so I would imagine Florida?

I can't imagine how it would come back and bite me, since they own and live in Illinois as well, and if they hadn't told me, I would have absolutely no way of knowing......

but, I'm new at this, and don't want to screw up!

Not that it matters in this situation, but Florida doesn't have a state tax.

I have never had this situation arise. I do have some Med Supp clients who live in one state, but go to Florida for several months in the winter. However, their primary residence isn't Florida.

It may be best to run it by the carrier to see what they say. My gut tells me it would be ok to write it in Illinois. And the added bonus is that the rates in Illinois are likely cheaper than in Florida.
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Not that it matters in this situation, but Florida doesn't have a state tax.

I have never had this situation arise. I do have some Med Supp clients who live in one state, but go to Florida for several months in the winter. However, their primary residence isn't Florida.

It may be best to run it by the carrier to see what they say. My gut tells me it would be ok to write it in Illinois. And the added bonus is that the rates in Illinois are likely cheaper than in Florida.

Well, I would imagine Frank, that's EXACTLY why they are Florida residents and not Illinois--no state taxes! :)~

I'm thinking I'll call the two carriers he is leaning toward and ask..... I'm thinking the rates are better here as well. He's looking at $130ish a month right now.
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Well, I would imagine Frank, that's EXACTLY why they are Florida residents and not Illinois--no state taxes! :)~

I'm thinking I'll call the two carriers he is leaning toward and ask..... I'm thinking the rates are better here as well. He's looking at $130ish a month right now.

If they are FL residents then that is the zip code that should be used for figuring their rate. You could probably get by with writing them an IL policy but that wouldn't be the right thing to do now, would it?

The carriers are going to tell you that they need to buy a FL supp. Now if they didn't offer quite so much info on this, they could/would have been home free with a lower prem and you could have written them an IL supp.
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Sman's name is Frank? I thought it was Scott. Or did Frank slide in a sneaky post pretending to be Scott?
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

If they are FL residents then that is the zip code that should be used for figuring their rate. You could probably get by with writing them an IL policy but that wouldn't be the right thing to do now, would it?

The carriers are going to tell you that they need to buy a FL supp. Now if they didn't offer quite so much info on this, they could/would have been home free with a lower prem and you could have written them an IL supp.

I agree with your answer, especially the last part of it.

When I was captive I could write anyone a Missouri Med Supp as long as they were standing on MO soil regardless of where they lived. It was a standing joke that every agent was carrying two shoe boxes with them with MO dirt in them.

It would definitely be to their advantage to have an IL policy. Premiums in FL are much higher.

Since it has gone this far he really doesn't have any choice except to call underwriting. I'm afraid they are going to give him the answer he and they don't want to hear.
 
Re: Need Advice: Med Supp and Residency Question...need an Answer

Scenario:

Met with a lovely couple yesterday afternoon who own a house here in Illinois. About halfway through the meeting, they tell me they aren't actually Illinois residents, but Florida residents. They spend 6 months and 1 day in Florida, at a house they own there. They have a Florida license that is only good in Florida (not sure how that works) But they ALSO still have their Illinois Licenses. They own the house in Illinois, but they do NOT pay Illinois State taxes, and they vote nationally as Florida residents.

Am I even allowed to sign them up for a med supp? Or do they have to do it in Florida, with someone who is licensed in Florida. They want to get this done before they go to Florida in a couple of weeks, and want to write with me because I took the time to come out and explain it all to them. His Medicare starts April 1, because his birthday is May 1st. I would obviously love to write them a supp, because his wife turns 65 next year, but I don't want to get into trouble!!

What to do???

When in doubt go by state where medicare would approve part D coverage.A simple call to social security at 1-800-772-1213 will tell you/them what is listed as permanent address.It should be state that they are homesteaded for taxes.Remember there is a fraud statement on the application.

I am in North Florida if they need an agent here.
 
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