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Good Question: Why DOES MOO change their company name so often? Does anyone here fear publicly criticizing them ? Serious question. Thanks.
Rising Costs of Med Supps for the Elderly
- Thread starter Northeast Agent
- Start date
XpressInsurance
Super Genius
- 244
They change so they remain competitive in the market. The other insurance companies are starting to do the same thing. Insurance pools can be soured with bad risks, if a pools claims are so high they need to raise premium. CSG Actuarial is a great tool to review the Market Data for each carrier's state & national numbers
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Of course MOO changes companies every few years. Healthy leave; unhealthy have no choices.
It’s a disgusting practice that screws those who need the help the most.
Agents who don’t see this are thinking with their commissions.
Rick
Unfortunately more and more carriers are beginning to play the shell game. It's as if they have all said, "if you can't beat 'em, join 'em".
- 15,319
Exactly why we need the “birthday rule.” Once you qualify for a med supp you should be qualified for life and be allowed to move without underwriting once a year.
A pile of garbage company can’t screw people if they are able to move to a lower priced carrier. It works in CA and is working in OR to protect beneficiaries.
By running for office perhaps I can convince those who may actually win to promote this.
Rick
If you don't mind, I'm going to play devil's advocate here. You should be able to get your point across even clearer then.
Here we go:
But doesn't an anniversary rule end up raising prices across the board because companies have to take on those who are just a claim waiting to happen?
If Mutual (or other companies that play the shell game), didn't do this, everybody would have to stick to the higher prices or they would have to leave Mutual. Therefore, Mutual would end up losing business of healthy people and all they would have are sick people, which would of course drive the prices up. Then Mutual would not be able to offer anything competitive in the Med Supp market.
What should they do so that prices stay competitive? Tighten up underwriting?
I have seen companies in the past that don't play the shell game. Many of them, due to needed rate increases, simply aren't competitive until they start a new block of business. What should they do? Just get out of the market?
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Let’s assume portability does increase costs a bit. I don’t know if that’s necessarily true as rates on Northern California are definite not high as compared to other populous areas.
However, it would allow everyone to be able to shop for the lowest rates at least once a year.
Rick
However, it would allow everyone to be able to shop for the lowest rates at least once a year.
Rick
All the carriers play the game. MOO started it, but now everyone does it, except AARP and Blue (at least in TX).
I don't know the MOO name changes, but in the last 15 years, Cigna has been Loyal American, American Retirement and now Cigna.
Here is how I explain it to clients:
"All the carriers, except AARP and Blue Cross play a game. There is a low cost leader ever year. This year its the Cigna ABC company. Cigna ABC has low, great rates and will continue to have low, great rates for 2-3 years. However, in 2 or 3 years, Cigna will stop selling Cigna ABC and open up Cigna XYZ with low, great rates. If you can get through underwriting, its terrific, because you can move to low cost carrier again. If you can't, you are stuck in a closed pool that is getting older and unfortunately, sicker. Then the rates start to rise. However, its about a $500 annual premium difference and you need to know the options. Especially since its all about ME and not getting yelled at later. I am fine with any carrier, because Plan G is Plan G is Plan G. As long as you understand we are rolling the dice on underwriting".
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