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UHC now paying lifetime renewals on MA biz written since 1/1/2007.I received an email from UHC about this and called the PHD today to confirm this.Nice!
UHC Paying Lifetime Renewals on Biz Written Since 1/1/2007
- Thread starter yogooglethis
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That would be nice. Especially considering they pay less than most carriers.
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- #4
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Even though they pay less then other carriers and the renewal stream is only 6 years the persistency is great (in Fl. anyway) so i can count on making on average 900.00 for every uhc med supp I sell. I have not had a Fl. uhc/aarp med supp legitimately replaced because of a lower premium since 2007
You only get $150 per app?
And for what it's worth, I look at persistency on a client level, not a carrier level. And my persistency is practically 100% (not counting deaths). With that said, using the same 6 year time period, my average is about $1,800 for each Med Supp sold (non UHC). While with UHC it's $1,260. I'm just thankful UHC isn't very competitive here.
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- #6
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The time and effort in having to constantly switch your clients to keep them in the most competitive plan is an opportunity cost that you don't incur when you don't have to switch a client because the carrier you placed them with to begin with has a low and stable average increases of less then 3% over the last 10+ years . That's what makes selling AARP/UHC med supps in Fl lucrative to me. (AARP/UHC region 2 T65 plan F in 2004 was $145.00 and in 2015 is $ 184.00.)
I guesstimated the 900.00 per app based on 4.5 years an average life span of the uhc/aarp medicare supplement paying 200.00 per year.Some clients die,some I switch to MA however none have switched carriers for better rates
Who said anything about constantly switching? My typical client sticks with their plan 3-4 years. My New Era clients are going on 5 years now.
As for the time and effort, I'll give you a typical scenario. Rate increase notice is sent by carrier. I am typically proactive so I'll run a comparison on CSG prior to hearing from the client. Takes less than one minute. I then send an email to the client informing them of their upcoming rate increase and their options to switch if there are savings to be had. Or the email will tell them my recommendation to stick with what they currently have. At this point I've spent no more than 5 minutes working on it.
If it warrants a change, we have a phone conversation and complete an e-app. That entire process is 15-30 minutes. So I've spent, in total, less than an hour to both save the client money and extend my commission for another 6 years. It's a win-win.
I realize UHC is THE carrier in Florida. That isn't the case here. My average commission with all other carriers is $100-$150 more per Med Supp compared to the $210 I get from UHC. Plus, they'll pay a lower commission for years 7-10.
I haven't said or even suggested you shouldn't sell UHC in Florida. You are more than welcome to come to Georgia and try to make it selling UHC. You'll definitely get some business. I sell a handful with them every year. But I couldn't make a living here selling only UHC in Georgia. They just aren't competitive. And I rarely have a problem replacing them as long as the client can get through underwriting. Nor do I have any problems when a T65 "thinks" they want AARP. Once they've been educated they almost always choose another carrier. That's what happens when they have 5-10 less expensive options.
I was also pleasantly surprised when I received this email from UH. I was starting to dread all the MA business I wrote back in 2009 and 2010 starting to fall off the commission statement even though most will probably be staying on that plan for years to come. About a day later GTL came out with new claim forms for HI that do not require physician statements. Thought maybe I was dreaming for awhile.
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