Trying to Sell a Medicare Book
- Thread starter richmond_ins
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- #14
richmond_ins
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- 7
Tins, you can send me a direct email and we can discuss it. I'm not looking to gouge anybody... just want a fair offer.
BTW, I have checked with UHC and they will allow a transfer of the book. They will not allow me to separate out MA and Supps - the whole book has to go.
BTW, I have checked with UHC and they will allow a transfer of the book. They will not allow me to separate out MA and Supps - the whole book has to go.
- 11,995
As has been pointed to earlier, anyone buying this book is taking a pretty big gamble. I really am not saying this to be mean, but someone needs to have their head examined if they're going to pay any amount of money for a book that's 75% MA. Those plans could non-renew, become horribly uncompetitive, get sanctioned, etc.
To put it another way:
A good deal is one that looks good from both sides of the table. I don't think there is a number that is going to make sense for you. Would you take $10k on it? My guess is not, but I think that would be a generous offer considering how volatile the asset is.
Another point you mentioned in your original post, wouldn't the income work to apply for a loan?
I feel for you, but I don't think the solution to your problem is going to be to sell your book unless you're willing to let them do something pretty ugly to you.
To put it another way:
A good deal is one that looks good from both sides of the table. I don't think there is a number that is going to make sense for you. Would you take $10k on it? My guess is not, but I think that would be a generous offer considering how volatile the asset is.
Another point you mentioned in your original post, wouldn't the income work to apply for a loan?
I feel for you, but I don't think the solution to your problem is going to be to sell your book unless you're willing to let them do something pretty ugly to you.
Josh,
So if they nonrenew or whatever you contact them and put them on a Med Sup or a different MA plan. That's what I do with all my current clients, couldn't you do the same with this book of business? I have no trouble keeping my book of business year after year no matter what happens to their MAPD or Med Sup there's always something else out there for them. Plus there is cross selling other products eventually not to mention referrals that may arise from these clients. Just my opinion.
So if they nonrenew or whatever you contact them and put them on a Med Sup or a different MA plan. That's what I do with all my current clients, couldn't you do the same with this book of business? I have no trouble keeping my book of business year after year no matter what happens to their MAPD or Med Sup there's always something else out there for them. Plus there is cross selling other products eventually not to mention referrals that may arise from these clients. Just my opinion.
- 11,995
There is a huge difference between buying a pile of renewals and buying a book that is going to need to be actively managed.
On personal lines books folks routinely factor in that a percentage of the book is going to leave when the find out they have a new agent and it's a given, the only question is how much.
Again, I'm not saying that it's completely worthless, but if you want to sell rental property that's already managed and generates pure profit with no maintenance that's different than selling property in a great location that needs to be rented and fixed up. A book of Medicare business is going to need some upkeep if it's 75% MA, especially since CMS is back and forth on whether or not an agent can contact their clients about things and roll them into a new plan. Again, not saying it doesn't have value, but it's not nearly as attractive as straight renewals.
- 4,707
If you purchased this block of MA business, you would be a complete stranger to these clients.
There is a big difference between working MA renewals with your current clients against working with complete strangers.
By the time the deal to purchase this block closes, the MA renewals for 2012 will probably have already been paid to the existing agent.
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- #19
richmond_ins
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I see all of your points, but I don't think $ 10,000 is a viable offer for a book that will produce $ 14000.00 through the rest of this year. UHC does have a pretty good persistency record and there is not talk about eliminating MA for 2013. Even if you figured a low renewal rate, this book still has value. At 50% renewal, the book will produce well over 25K between now and end-of-year 2013. I agree that 2014 is a long way off in the MA world.
If these clients were as worthless as some of these posts make believe, nobody would work MA at all.
If these clients were as worthless as some of these posts make believe, nobody would work MA at all.
- 11,995
I think you're misinterpreting the comments. It's not that they're worthless, it's that they're a bad investment for an investor. There are a lot of ifs on this deal and I would agree that the book is probably worth more than $10k, but it's not straight cash. Take a look at P&C books that are basically cash machines, they only sell for 1.5-2 annual commissions and those will go on forever and ever. The MA business is constantly changing.
Although you may not have liked what junkman said,
is probably going to leave you with more money in your pocket.
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