Selling C and F After 2020

[midwestbroker]

I just returned from the Medicare Supplement Conference where there was a panel which discussed the MACRA law and Plans C & F.

According to the way it is structured now (still in sub committees, but the NAIC and CMS are represented on those committees):

If someone is eligible for Medicare Part A prior to January 1st, 2020, they can still enroll into a Medicare Supplement Plan C or F, even after January 1st, 2020.

Yes, you read that right, Plan C & F will still be available to certain Medicare Beneficiaries after 1/1/2020.

I am working up more notes and will post them...but I thought this was one of the more interesting points brought up.

 

[axeman462]

I had attended an AARP Webinar about a week or two ago. This is what I got from it in regards to Medsupps going forward:

- Plan F only going away in 2020 for T65 in 2020 and beyond
- Anyone eligiable for a Medsupp now, can switch to a plan F in 2020 and beyond
- AARP will have a plan G in Jan 2018
- New letter plans are expected in 2020 (ie: plans O, P, Q etc...)
- Part B deductible is expected to rise to $500 over the next few years

 

[somarco]

Part B deductible is expected to rise to $500 over the next few years

I would expect premium savings on plans that require payment of the B deductible to reflect the lesser payout.

Also anticipate repercussions from the gray panthers if the deductible rises too quickly and too far.

 

[midwestbroker]

They talked about the Part B deductible and said it is tied to the Part B premium through an actuarial model, so the Part B premium would have to skyrocket for the Part B deductible to as well.

Here is some info on how everything works together from KFF:
What’s in Store for Medicare’s Part B Premiums and Deductible in 2016, and Why? | The Henry J. Kaiser Family Foundation

 

[somarco]

Thanks for the info.

Increasing B premiums and B deductibles significantly will generate a lot of squawk as well. Can't tell you how many people complain about premiums rising in years when their SS remained the same.

These old folks can be crabby.

Not nice like me.

 

[midwestbroker]

I took my notes from the meeting and put them on the SMS blog here:

https://sms-university.com/blog/selling-plan-c-f-2020/

One big issue the panel had was of insurance agents using the tactics listed on the blog (under Rumors and Rates). The one panel member from the DOI said they are taking this very seriously and any complaints will be reviewed and then stated the sections of the DOI guidelines that give them the power to revoke an insurance license. Doesn't sound like they are too happy about agents scaring seniors with unsubstantiated claims of rate increases.

 

[kgmom219]

From the link above:

They displayed the following on a slide saying there is no evidence to support any of the following:

Plan F rates will never stabilize or remain low if there are no new policies being sold to healthy enrollees

SERIOUSLY? How does that work? The pool is going to get older and sicker. Subsequently claims loss will rise. Then premiums will rise. Am I missing something here?

I don't sell to people trying to move (except the MOO people who are calling me right now after getting their rate increase), but I certainly discuss the rating pools when selling to T65's and why I think G is the better choice, long term. And now I can get fined for it?

 

[somarco]

Gee ......... at least in my state, plan G has been a better buy for years now. Becomes an even better value as carriers give higher increases to F over G, usually by 200 basis points.

And I agree with Jen.

What happened when a particular carrier closed their plan N block? Oh yeah, rates increased significantly.

How can one argue against rising rates when you have what amounts to a closed block of people getting older and sicker?

And then there is the fact that most carriers don't want F plans now. That's why you see significant discounted price points for G (and N) vs F rates.

Any idea what the folks at that meeting were smoking?

 

[sman]

Thanks for the info.

Increasing B premiums and B deductibles significantly will generate a lot of squawk as well. Can't tell you how many people complain about premiums rising in years when their SS remained the same.

These old folks can be crabby.

Not nice like me.

Pretty sure there's a hold harmless clause that states if there is no increase in SS then there can be no increase in the Part B premium. So if they are complaining that they didn't get a raise while their premium increased, that just isn't true.

 

[kgmom219]

Pretty sure there's a hold harmless clause that states if there is no increase in SS then there can be no increase in the Part B premium. So if they are complaining that they didn't get a raise while their premium increased, that just isn't true.

There is. If COLA doesn't rise, the Part B premium cannot rise. Which is why people on Part B prior to 12/31/15 are paying $104.90, 1/1/16 and beyond are paying $122.90.