UoO Increases

[alldaytuesdays]

Medicare Supplement (Medigap) Rate Increases for the States of South Dakota (SD), Connecticut (CT), Kentucky (KY), Michigan (MI), Oregon (OR), South Carolina (SC), Tennessee (TN), Ohio (OH) and Wisconsin (WI) Effective 4/1/2010 Ritter Insurance Mar

FYI if you havent seen it, only the beginning I guess, but a few UoO state increases came out for 4/1. 28% in TN, 24% in MI, 20% in SC and several other states.

 

[Daytona_Guy]

Yep, saw the memo yesterday.
Agents would be well advised, in my humble opinion, to bring folks to Gerber, for example.

If you're not contracted with Gerber already, you can find it here: FinalExpenseByPhone.com - Gerber Life Contracting

Some have even proposed rolling those that came into January from closed out plans. Those that go guaranteed isse as a result of terminating PFFS plans but have horrible health are still within their 63 days to get guaranteed issue. If they don't, they face certain ruin with these rate increases in January 2011.

Since they're still in a G.I. window, they could go to Gerber now AND increase their 12 month rate lock out another couple of months. They might have a more stable rate increase forcast, too.

What is certain, though, is that the two extra months at lower rates are in their best interest (reduces/eliminates replacement concern). Plus, Mutual and Gerber are not the same entity and these are not considered "internal" replacements. (This does not matter in AR or MO, of course.)

It's something to consider... It's throwing these brand new (1/1 eff) United of Omaha people a lifeline before they get stuck in the death spiral of claims & rate increases.

 

[ksigmtsu]

So if I'm understanding this correctly, the rate increases will not take affect on new policies until the 1 year anniversary?

Stupid mutual, now I gotta do like 15 policies worth of paperwork.

 

[insurance0707]

Let's hope we can move them from Plan F or G to Plans M or N on a guaranteed issue basis with UO. This should offset the rate increase, at least in MI

 

[Daytona_Guy]

Let's hope we can move them from Plan F or G to Plans M or N on a guaranteed issue basis with UO. This should offset the rate increase, at least in MI

No, the memo I read says that they can switch plans IF they can qualify through underwriting again. We had initially heard that they were going to see what everyone else was going to do with regard go being able to move to M or N on a guaranteed-issue basis. Apparently, they all opted against it.

See the memo here.

 

[insurance0707]

AARP usually lets a client move with no health questions if thier going with a plan that has less benefits. I don't know if that will be the case on the new plans.....

 

[MedSuppPro]

It is quite difficult to imagine any careful carrier will allow an Open Enrollment or a Lateral Transfer. This is not an easy market as some would like to lead us to believe. We are in for some big rate increases and trying to get a two month gain is counter productive.

In just 6 months, MedSupp inflation factors have gone from 5% to over 9%. And it is not just rate increases that one needs to look at. LH and National States are a few that come to mind!

 

[ksigmtsu]

Let's hope we can move them from Plan F or G to Plans M or N on a guaranteed issue basis with UO. This should offset the rate increase, at least in MI

Tennessee they aren't planning to offer the N or M by their paperwork they already released, maybe they change that by the time june rolls around but who knows. Although, from what I see I can roll most of mine into Gerber, and I'm about to call EVERY person I have noted in my CRM as having a MOO policy that I couldn't undersell. I knew taking notes would come in handy someday. Already called all my active customers today, they were shocked I called them, literally saying things about how they can't imagine that any agent would call them to try to save them money on a policy they had already sold them. Got 3 referrals today from people that knew other people with MOO policies. Wish they'd increase rates more often.

 

[Daytona_Guy]

We are in for some big rate increases and trying to get a two month gain is counter productive.

Counterproductive for whom?





.

 

[MedSuppPro]

Counterproductive for whom?
.

Switching from a Mutual of Omaha Company to a carrier whom is cookie cut from the same actuary department is counter-indicated. Personally, I would look for another carrier...

Mutual never met a rate increase it didn't implement.

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GENERAL QUESTION:​

Are we sure that the Guarantee Issue applies to people whom are already covered by a MedSupp as of January 1st. These people have already used their Guarantee Issue and have an existing MedSupp in place. The extension is for people who failed to sign-up prior to January 1st.

For those whom have already signed up for and have an existing MedSupp in place as of January 1st; are we sure that another carrier couldn't say that our client has already used their Guarantee Issue and is not able to switch without answering the health questions?

Isn't this a MedSupp replacement?

I'm simply asking a question!