Update on Plan N Underwriting with MOO

[sman]

Just got an email with some info. It states:

Limited underwriting on Plan N only

• In AL, AR, IA, ID, MI, MT, NE, OK, UT, WV and WY, you do not need to answer any of the medical questions or fill out the pharmaceutical information for anyone applying for Plan N.

• In ME, MO, MS and SD, you do not need to fill out the pharmaceutical information and there is only one medical question that must be completed for anyone applying for Plan N. Updates have been made to the applications in these states with additional instructions and the required question under the Health/Medical Questions on the
application.

 

[captain94]

What about Ohio? Are we left out?

 

[G.Gordon]

What about Ohio? Are we left out?

... "What brings you to Ohio?"

... he said, "Damned if I know."


What song is it?

 

[Frank Stastny]

The copay for Plan N will be either 20% of charges or $20.00, which ever is less.

 

[Yoda]

Just got an email with some info. It states:

Limited underwriting on Plan N only

• In AL, AR, IA, ID, MI, MT, NE, OK, UT, WV and WY, you do not need to answer any of the medical questions or fill out the pharmaceutical information for anyone applying for Plan N.

That sure looks like good news. I dont see what Mutual Of Omaha is up to with that but I like the way that it sounds. Not that Mutual Of Omaha has to be up to something but there are some things about this that dont add up. Man you start playing devils advocate with this deal and alot of things come up that dont make any business sense. 1rst thing that comes to mind is if theres any truth to the story that the more claims a group receives the higher the premiums go and if theres any truth that this will be extremely loose underwriting then you have a recipe for a plan that will cost more then the "F" plan before its over with. And that could suck being stranded on a "N" plan full of lots of unhealthy people. Just thinking out loud.

 

[G.Gordon]

Simple to understand what they're up to. Look at thier looser standards on taking people off of Medicare Advantage. They want to take people from "that" market.

Plan N is being seen as the plan to make this happen even more so they loosen the underwriting so that more people will be able to exit MA's without getting turned down.

I've already talked one T65'r that ages in 4/1/10 out of signing up for a MA due to lower premiums. I explained the cheaper Plan N ($85/mo) then told her to consider the limited out of pocket expense... $155 ded then the copay of (20% or $20 which ever is less per doctor's office visit) and the $50 ER... then told her to constrast that to the MA plan she was looking at in Bates county (a poor county for MA offerings)... she's going to run naked until June 1 and take a Plan N.

Plan N will hurt the MA market where the offerings are weaker.

 

[finleyh]

Frank,
I was looking at the Plan N and it looks like a carbon copy of a Plan D with the exception of the copay of 20% or $20 which ever is less. This looks like great news to me. I work the Ms market and my only guarantee issue option is AARP that runs $270 plus. The Plan N should kill AARP's guarantee issue sales. Am I missing something here? In 2 years selling supplements I have only had 1 client get a condition where she could not replace the coverage I sold her. Luckily she had Mutual of Omaha and even after rate increase of 20% she is still not close to where her old premium was. The fear of selling someone a policy that they will never be able to replace is over unless I am missing something. I liked the idea of a guarantee issue on the anniversary date of the policy like in your home state until I saw how much higher the rates were. It almost seems like the guarantee issue Plan N has the best of both worlds for the people of Ms and every other state approving them. They get lower rates for Plan F's than states like Mo and guarantee issue for Plan N's with much lower rates than currently offered by AARP's guarantee issue. That said I'm curious if all companies will be required to offer the Plan N. Do you think I am off base here?

 

[G.Gordon]

That said I'm curious if all companies will be required to offer the Plan N. ?

I doubt it. The only plan that is required is Plan A. If a company is going to get into the Supplement business they can offer any plans they choose, but they have to offer Plan A in that selection.

 

[Frank Stastny]

Frank,
I was looking at the Plan N and it looks like a carbon copy of a Plan D with the exception of the copay of 20% or $20 which ever is less. This looks like great news to me. I work the Ms market and my only guarantee issue option is AARP that runs $270 plus. The Plan N should kill AARP's guarantee issue sales. Am I missing something here? In 2 years selling supplements I have only had 1 client get a condition where she could not replace the coverage I sold her. Luckily she had Mutual of Omaha and even after rate increase of 20% she is still not close to where her old premium was. The fear of selling someone a policy that they will never be able to replace is over unless I am missing something. I liked the idea of a guarantee issue on the anniversary date of the policy like in your home state until I saw how much higher the rates were. It almost seems like the guarantee issue Plan N has the best of both worlds for the people of Ms and every other state approving them. They get lower rates for Plan F's than states like Mo and guarantee issue for Plan N's with much lower rates than currently offered by AARP's guarantee issue. That said I'm curious if all companies will be required to offer the Plan N. Do you think I am off base here?

Nope, you are are not missing anything. It is just like a Plan D except for the co-pays.

Don't also forget that MOO is paying higher commissions on Plan N also. I suspect that Gerber, Woodmen and possibly Sentinel will follow MOO's lead on the GI and increased premiums but that is only a guess on my part. Not trying to start a rumor.

It will be totally up to the individual insurance company if they want to make Plan N guar issue. I think, but not totally sure, that companies will also be required to offer Plans A and F with the new standardized plans.

We are on the brink of a huge explosion of Med Supp sales in the coming months. What is the FDIC limit on checking accounts?

 

[Yoda]

That Is A Shilly Breeze Blowing Thru Here Tonight Did I Say That Yet?