Plan Termination = Big Chargeback

WCMason

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In my short four years selling MAPD I only this AEP found myself with a plan termination to deal with. I spent a good part of the first AEP week moving those clients to other plans and still have much work ahead. Then the cherry on that crap Sunday came: a $2K chargeback this week on all those I'd enrolled this year in that terming plan who had not been in plan a full 12 months yet.

Now I realize when I rewrite them I'll get all that money back but what a huge hassle. And, another of my MAPD carriers had a big copay increase causing lots of clients to call wanting me to go shopping with them (and there are better plans to move them to). This AEP so far is more new clients than rewrites, but more existing client management than past years.

So glad two-thirds of my book is med supp. At least a big price increase that causes a need to rewrite them would be spread over 12 months. Haven't had that happen yet. Hope it never comes in the fall. I'm now thinking that those who report ridiculous MAPD enrollment numbers during AEP are mostly moving current clients more than writing new ones.
 
In my short four years selling MAPD I only this AEP found myself with a plan termination to deal with. I spent a good part of the first AEP week moving those clients to other plans and still have much work ahead. Then the cherry on that crap Sunday came: a $2K chargeback this week on all those I'd enrolled this year in that terming plan who had not been in plan a full 12 months yet.

Now I realize when I rewrite them I'll get all that money back but what a huge hassle. And, another of my MAPD carriers had a big copay increase causing lots of clients to call wanting me to go shopping with them (and there are better plans to move them to). This AEP so far is more new clients than rewrites, but more existing client management than past years.

So glad two-thirds of my book is med supp. At least a big price increase that causes a need to rewrite them would be spread over 12 months. Haven't had that happen yet. Hope it never comes in the fall. I'm now thinking that those who report ridiculous MAPD enrollment numbers during AEP are mostly moving current clients more than writing new ones.

Those termed plans are gold. You can move them to GI Med Sups which is what most of them wanted to start with but couldn't health qualify.
 
Those termed plans are gold. You can move them to GI Med Sups which is what most of them wanted to start with but couldn't health qualify.

The problem with that is you are losing your comp.

I always warn agents about moving clients from Medicare Supplements for any number of reasons with respect to client issues (lack of access, etc etc). But what most agents never understand is once that client comes back to a supplement via an SEP the comp is gone or greatly reduced.

I watched an agent roll about 100 Medicare Supplement clients to an MA plan which pulled out two years later. A large % could not go through underwriting and had to use the SEP .

The commision hit for the agent was about 10k a year for the next 5-6 years.

Just something to think about
 
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