Rising Costs of Med Supps for the Elderly

Apr 9, 2018

  1. Northeast Agent
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    Northeast Agent Super Genius

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    What do you tell clients when they ask what a Med Supp will cost as they age? Most of my clients (my book is small, I'm building it) are in their late 60s to mid 70s). Right now, the costs for a Plan G or N are affordable, but looking at the cost right now for a 90 year old, they are much higher.

    I'm figuring one spouse may be deceased by then, so the household discount may be gone, they will have lost the monthly second Social Security check, etc. I know you can always switch them to a MA plan, but that's tough after coming off a MS.
     
  2. TampaHound
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    TampaHound Guru

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    I'm honest with them. Its all about risk.
     
  3. somarco
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    somarco That Medicare Guy

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    We have a talk about global warming and that eases their stress.

    I have no idea what rates will be next year, much less 15 or 20 years out. Can't say if my client will be alive or not. They could win the lottery.

    Life does not come with guarantees. Anyone who has made it 70 years knows man plans and God laughs. You do the best you can and move forward.

    I won't get into the Medigap vs MA debate but think about it. Even a zero premium plan has costs. I get calls all year long from people who can't afford their MA plan.

    My clients choose Medigap over MA because they want to keep their doctor and be free to travel the country without worrying about networks.
     
    somarco, Apr 9, 2018
    #3
  4. Bevo
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    Bevo Guru

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    Tell them to imagine how expensive things could get if they DON'T have a Medigap plan at that age.
     
    Bevo, Apr 9, 2018
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  5. vic120
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    vic120 Guru

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    I never had any issues with this one, I always tell them all medsupps go up in premium and we try to use companies with a lower increase history

    And that I am always available to shop new rates when increases come up.

    Beyond that whats, the alternative, go without a supplement and be exposed?

    Most understand all things go up in price not really ever taken back by it
     
    vic120, Apr 9, 2018
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  6. XpressInsurance
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    XpressInsurance Super Genius

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    Maybe your client can't afford a Medicare Supplement. I have number of clients from 5-8 years ago on Supplements that are switching to MAPD. Many of them were paying $4k-$6k annually for h/w med sup plus PDP. Then their lives changes, they don't travel much, get all healthcare from a trusted local hospital, some just get tired of living. It is about risk, & geography, people in FL, NV, CA, AZ can have very little MOOP on MAPD. MAPD risk is different in most places in county. Supplements are great if they can afford it. I also have quite a number of clients on supplements that get Extra Help, but that is what they want..
     
  7. Chazm
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    Chazm Guru

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    You can’t look at prices for a 90 year old and assume that’s going to be their premium at age 90. At least in FL

    Here, I have clients that are in their mid 70’s paying exactly the same as what a 65 year old pays. But if I quote a mid 70 year old today, the premium is much higher
     
    Chazm, Apr 9, 2018
    #7
  8. goillini52
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    goillini52 BUILD THAT WALL!!!

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    This would've been my answer, but since you already posted it.....Good answer Vic.
     
  9. LostDollar
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    LostDollar Guru

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    I don't know what we can do except carry on.

    Many of us are probably one or two serious illnesses away from financial destruction.
     
  10. sman
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    sman Guru

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    I tell clients that they can expect an increase annually and that it will likely be in the 5%-9% range. If we come in under that figure then great. I also tell them, health permitting, we can always shop it for a lower cost carrier at any point in the future. There is absolutely no sense in worrying about what MAY happen IF they make it to age 90.
     
    sman, Apr 9, 2018
    #10
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