Proposed Changes to Medigap

[BuckNasty]

I got an email today from Cigna urging me and other producers to get onboard and sign some petition to stop Congress from majorly overhauling MEdigap. Here is what is being proposed and is basically agreed upon by both sides. This cannot be good for reps:

Medigap Changes: Both sides may also agree to discourage the use of “first-dollar” Medicare supplemental policies. The thought is that more generous Medigap plans encourage overuse of services, but seniors rely on these plans to shield them from unanticipated costs.

Starting in 2017, the president’s budget plan would require new beneficiaries who purchase more generous Medigap plans to face a surcharge of approximately 15 percent of the average Medigap premium.

Ryan and other Republicans have expressed support. In an Oct. 8 op-ed in the Wall Street Journal, Ryan said Medigap premiums could be overhauled “to encourage efficiency and reduce costs.”

 

[senior-advisor-indiana]

I got an email today from Cigna urging me and other producers to get onboard and sign some petition to stop Congress from majorly overhauling MEdigap. Here is what is being proposed and is basically agreed upon by both sides. This cannot be good for reps:

Medigap Changes: Both sides may also agree to discourage the use of “first-dollar” Medicare supplemental policies. The thought is that more generous Medigap plans encourage overuse of services, but seniors rely on these plans to shield them from unanticipated costs.

Starting in 2017, the president’s budget plan would require new beneficiaries who purchase more generous Medigap plans to face a surcharge of approximately 15 percent of the average Medigap premium.

Ryan and other Republicans have expressed support. In an Oct. 8 op-ed in the Wall Street Journal, Ryan said Medigap premiums could be overhauled “to encourage efficiency and reduce costs.”

Doesn't seem like a bad idea to me. What are you worried about?

 

[BuckNasty]

I guess I am worried about having a book of business in plans that the gov't might deem to be too benefit rich and thus force participants out by closing them or creating a big tax on them. In addition John Kerry put forth a proposal before he became Secretary of State that would cap the commission on Med Sups to something like $25 (which fortunately died in committee) but who knows what will pop up.

I think the main takeaway is that MAJOR changes to medigap and Medicare in general are coming and almost all of the companies who offer them don't think they are going to be good.

As a newer rep, at least to Medigap, and considering how much effort goes into gaining new clients with the expectation that the long term payoff will come, it makes me pause at least to consider whether I am in for some disappointment down the road on my residuals that are a big part of why I am doing this.

 

[Midlevel]

I say everyone has a $35.00 copay on Dr. visits and $40.00 on each rehab visit. Maybe that would cut down a little on everyone running to the Dr. for a cold and Physical therapy going on for several weeks longer then needed. I notice my MAPD people go to therapy for a few times and then figure out they can do the same thing at home and get same results without having to pay the $50.00 copay.

 

[The Brokerage Resource]

The point that most people forget is a Medicare Supplement only pays on Medicare approved charges.

If Medciare approved the charge how can a senior be over using it.

So if you make it harder for people to get to see a doctor then the outcomes get worse because people wait until a minor health problem becomes a larger more costly heath problem.

No easy answer on this one.

 

[bluediamond]

This keep's cropping up every year, just wait until or if it happens.

 

[bpenn9]

This keep's cropping up every year, just wait until or if it happens.

That's what I was thinking.

 

[Nelson C. Janney]

I totally agree with the comments made. Could ah would ah should ah. Deal with what you have now and deal with what comes down, if and when it does. In the mean time sell what you've got to as many people you can. Don't spend all your time wondering what if.

 

[somarco]

Keeping seniors away from the doc (high ded or copay) will do more harm than good to the Medicare system.

 

[maniacagent]

I got an email today from Cigna urging me and other producers to get onboard and sign some petition to stop Congress from majorly overhauling MEdigap. Here is what is being proposed and is basically agreed upon by both sides. This cannot be good for reps:

Medigap Changes: Both sides may also agree to discourage the use of “first-dollar” Medicare supplemental policies. The thought is that more generous Medigap plans encourage overuse of services, but seniors rely on these plans to shield them from unanticipated costs.

Starting in 2017, the president’s budget plan would require new beneficiaries who purchase more generous Medigap plans to face a surcharge of approximately 15 percent of the average Medigap premium.

Ryan and other Republicans have expressed support. In an Oct. 8 op-ed in the Wall Street Journal, Ryan said Medigap premiums could be overhauled “to encourage efficiency and reduce costs.”

Ryan studied economics in school and thinks he knows everything even though he's never run a business. Congress will do this; just a question of when.