One Exchange Able to Get G Medigap Guaranteed Issue?

Nov 16, 2016

  1. TN_agent
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    TN_agent Guru

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    TVA retiree, losing retiree plan that pays like a med sup+ part d at the end of December..

    They were told by their one exchange rep that they could get on a G plan with Cigna guaranteed issue without going through medical underwriting. I am newly appointed with Cigna, did not think they had a G available GI in TN. Am I wrong about that (I hope)?

    I had already told them they were eligible for F (and the other letters), not G for GI s. Wife has Alzheimer's diagnosis.

    Did one exchange broker some sort of deal with these companies to issue plans GI for this specific population of retirees? Is that even allowed? Do you think this is some sort of group medigap rate? Have any of you heard of this before?
     
    TN_agent, Nov 16, 2016
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  2. goillini52
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    goillini52 KeepAmericaGreat...Eat Bacon & BUILD THAT WALL!!!

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    Cigna's UW Guide says A, B, C or F. I'd call Cigna in the morning and see what they say. They might have misunderstood.
     
  3. somarco
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    somarco GA Medicare Expert

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    These reps often are clueless. A few years ago when AT&T started their retiree HRA people were told they could get any plan, no health questions.

    Makes it hard to compete with stupidity.
     
    somarco, Nov 16, 2016
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  4. TN_agent
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    TN_agent Guru

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    That's what I thought but now my client is thinking they will buy from them because they are quoting these Gs that no way they could qualify for if I write because I have to follow GI rules.

    These people are smart, met me with ahead of time and I stated that G was not available GI, but I could get them on F GI. So, they had been prepped by me.. They specifically told the rep "I thought G was not available GI". They were only going to meet with the rep to sign up for the PDP to use their HRA funds, which are not a lot so they want to use me if possible.

    They were told "we have to treat everyone equally" in some deal oneexchange worked with the carriers and their application for the G could not be denied?

    I am meeting with these people tomorrow so I can see what they have been given. The rep also quoted a price for Cigna that is not in line with any of my pricing,that makes me think maybe it is some sort of private supplement that they are offering--it would be higher than my cheapest Gs, but cheaper than most of my Fs. I asked if any other supplement carriers were brought up other than Cigna, he said no.

    Somarco, what happened when applications for Gs and Ns were submitted as GI for AT&T retirees? They were denied, right? Or did AON work some sort of deal with the carriers to accept those applications? I wouldn't think the carriers would agree to that.
     
    Last edited: Nov 17, 2016
    TN_agent, Nov 17, 2016
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  5. somarco
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    somarco GA Medicare Expert

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    DK.

    Carrier has the right to accept any plan GI, not just the standard ones outlined on Mcare.gov

    TransAm was the carrier used at the time. They don't write through brokers (other than consulting firms with private exchanges).

    When I encounter resistance, or stupidity, or both, I move on. Enough low hanging fruit out there without beating my head against a wall.

    If the client see's the light before it is too late they know where to find me.

    I did hear from folks I talked to later that G/N were not available GI. Guess Aon and the reps got spanked and promised not to do it again.
     
    somarco, Nov 17, 2016
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  6. TN_agent
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    TN_agent Guru

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    I know that the carrier can choose to issue as many plans as they want GI, but that would be for everyone who applies for that plan no matter where the application originates, right?

    Carriers wouldn't be allowed to accept SOME applications from SOME agents as GI, then not allow other agents to submit applications GI for the same plan. Or can they?
     
    TN_agent, Nov 17, 2016
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  7. somarco
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    somarco GA Medicare Expert

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    In a perfect world . . . .

    What you state is true, in theory. But what happens behind closed doors often never see's the light of day.

    I have seen claims paid that never should have been, but they were paid extra-contractually.

    Business placed by big producers that the every day agent would never get approved.

    If you are TransAm (or any other carrier) and have a broker/consultant with access to thousands of clients, you sometimes allow things that you and I would never get approved.

    That's why I move on rather than fighting. Much easier to write 3 or 4 apps elsewhere rather than holding out for something that may never come my way.
     
    somarco, Nov 17, 2016
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  8. Newby
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    Newby Guru

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    One Exchange has made exclusive deals for GI plan G before. I think they did it last year with GE retirees. But it was priced slightly higher than the carrier they used regular Plan G.
    Just educate your customers that they do not want to be in anybody's G.I. block of business unless they can only qualify for G.I. It doesn't matter which plan it is if it has mainly G.I. applicants it is going to spiral out of control on rates more than a plan that people have to health qualify for.
     
    Newby, Nov 18, 2016
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  9. TN_agent
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    TN_agent Guru

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    Newby,

    That makes perfect sense given the rates they were telling me for a G weren't in line with my quote (they were $25 a month more). Thank you for that insight!
     
    TN_agent, Nov 18, 2016
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  10. Newby
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    No problem. I think when GE did theirs it was an MOO plan G that was priced exclusively for them and was GI.

    I peeled off several of their retirees that were healthy and got them to health qualify for the same plan at lower premium.

    I encouraged them to tell every retiree they knew to spread the word that One Exchange was not a good option for most. I don't know if it did any good but it felt pretty good.
     
    Newby, Nov 18, 2016
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