United of Omaha to Raise Rates 40%?

I agree with you, Rick, on the rates going up due to a higher % of GI's than actuaries projected but I don't think they're will ever be a max OoP on Medicare. The system is financially strained as it is. It can't be expected to take on more of the financial responsibility than it already does ... and isn't national healthcare for folks under 65 supposed to be partially financed by cuts in Medicare?
 
I would love that spokesman for AHIP to come out and say- "Let me remind you @#$% commies that this is America. A company can charge anything it wants to for its product. Conversely, an individual has the right not to buy that product from said-company. It is called capitalism and it is what made our country great-up until the time you folks took charge and turned the free market upside down. But come November of this year and November 2012, we will get the country I love back. Enjoy the next month/2years of your job, assholes." Yeah, that's what I would say.
 
I've thought about writing a modernized version of Aesop's Fable "The Ant & the Grasshopper" in which one of the grasshopper's forces all the ants to support all the other lazy grasshoppers that play all summer while only the ants gather food for the winter. I think it would teach our kids compassion for "the weak that are unable to support themselves". I just worry it might teach them that it's OK to be lazy because some grasshopper is going to make sure they get there's whether they work and/or contribute to society or not.
 
My best guess is that ultimately Medicare will have a max on the out of pocket. Certainly this will happen if and when we have a single payer for medical coverage.

If there is a limit of $4K on Medicare OOP, there will be no need for someone to pay $2K or more for a supplement.

I don't have a crystal ball but fair is fair. Why should those under 65 have a OOP limit, but not older people?

Frank will be here shortly to post that I'm wrong and there is no evidence, etc. But this is my belief.

The other issue is with so many MA clients losing plans, the ones that will gravitate to med supps on a GI basis will be sicker than the "average." This will put pressure on rates also.

Just my 3 cents.

Rick

But Rick, you also told me that it is your "belief" that the tooth fairy puts money under your pillow.

There is no talk or evidence that Medicare will set a max oop on Medicare. Absolutely none. It's something you dreamed up so you can be argumentative and yell to all who will listen, "The sky is falling, the sky is falling".

I can present a much stronger argument that even if Medicare were to do that seniors will still buy a Med Supp. Plan N is a good example. I have spoken to a lot of my clients about moving to a Plan N and most are not interested. They don't want the "hassle" of having to pay a copay when they go to the doctor even though I can save them a couple of bucks by moving them to a Plan N.

Do you really believe that those people will accept a potential $4,000 out of pocket expense? I know that most of my clients won't. The vast majority of seniors could drop their Med Supp, keep just Medicare and their oop expense would probably be well under $500 to $1,000 per year.

A senior would have to be pretty sick and in the hospital before their oop would even get to $2,000.

Regarding your comment about premium increases. You may not have read my post where I stated that most companies are taking a small increase now, 5% to 14%, in anticipation of the millions, yes there will be millions, who are being disenrolled from their MA plans and have GI to take a Med Supp. It's kind of a "cover your ass" move.

People a lot smarter than you and I have studied this and are making plans in anticipation for an influx of GI people. Just because some reporter said 40% without naming any sources doesn't mean that it's going to happen. Reporters love to make $hit up, yell the sky is falling and get people all riled up. Kind of like some insurance agents I know. :D
 
I find it quite interesting that they don't identify the source of the "reports" they are "responding to".
I agree..what I think is happening to all companies is that when the MA contracts start dropping and are being picked up by the major MED Supp carriers you will undoubetedly see an increase in claims but also to balance out an increase is revenue. Mutual along with Gerber anticipates this and will slowly adjust rates. You will not see 40% increase at one time. Mutual and Gerber want the business and will not price themselves out of the market. Companies are making money on Med Supp bus. Natioal States just sold 33000 MS policies to Oxford Life which is primarily final expense although they to are opening their MS bus. is many states
 
Adding a max oop to medicare wouldn't impact supplement sales. Ever try pitching someone on a High F?
 
Adding a max oop to medicare wouldn't impact supplement sales. Ever try pitching someone on a High F?
I have sold 2 High Ded. F plans in 20 years. This was to a couple which had researched this and through alot of math had determined it was best for them. this was 8 years ago and they still pay ann. prem.. They brought it up so that is what I gave them. other than that I do not market the high ded F.
 
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