Who's selling Mutual of Omaha Med Supps?

[BuckNasty]

In a few states that I market in they have been the price leader with their United World Life Med Supp Product.

I've have put a few hundred policies on the books with them in the last couple years, as their rates, especially with the 12% household discount, have been really good on the T65s.

I'm trying to come to a decision as to whether I will continue writing them as I've seen some posts here on the forum and also have passing feed back from clients who rejected MOO after "reading online" about big rate increases.

Would appreciate hearing from some of the long-time producers here who have kept an eye on or wrote MOO as to how their rate stability has been over the long term as compared to the other carriers.Thanks!

 

[somarco]

When a carrier is retired from the market rates invariably increase at a higher clip than if they were still actively writing business. The closed block is getting older and sicker. No new bodies coming in.

Mutual of Omaha
United of Omaha
United World
Omaha Insurance Company


Aetna
Genworth
Continental Life
Aetna Health and Life
American Continental

Cigna
Loyal American
American Retirement Life
Cigna Health and Life

Do you see a pattern?

 

[BuckNasty]

When a carrier is retired from the market rates invariably increase at a higher clip than if they were still actively writing business. The closed block is getting older and sicker. No new bodies coming in.

Mutual of Omaha
United of Omaha
United World
Omaha Insurance Company


Aetna
Genworth
Continental Life
Aetna Health and Life
American Continental

Cigna
Loyal American
American Retirement Life
Cigna Health and Life

Do you see a pattern?

Appreciate the reply, I do see the pattern, yet I still write all three of those companies either through the parent or the minion.

Is your strategy to avoid them and have clients pay more at the outset to go with a carrier that doesnt do spin-offs under the premise that future rate increases might be more reasonable?

 

[russelltw]

I think it's part of the industry now.

I also let the client know we will be shopping rates at least every couple years. I think MoO and others are not closing books as fast as they used to and rates seem to be more stable. I write all three and they seem to stay competitive now until early 70's (client's age) for the book I have. Curious what others think.

 

[Chazm]

If Florida we have pretty stable rates, albeit higher than most states. But I was burned by MoO once back in 2010 with back to back double digit rate increases. Since then, I’ve only written 4 or 5 of them. Not by my choice.

 

[somarco]

Is your strategy to avoid them and have clients pay more at the outset to go with a carrier that doesnt do spin-offs under the premise that future rate increases might be more reasonable?

I tell them there are some carriers I won't use, regardless of price. If they still want to use that carrier I suggest they buy direct.

Most of the time they ask "Which ones do you like?".

Most agents won't or can't use the take away at that point in the sales process. I can either prevent a headache or treat it.

Prevention is my choice.

I know that a closed block of business = higher renewal rates in most cases. And I explain that.

Depending on my mood, sometimes I will write an app with a carrier that plays roulette. Most of the time not, but it is getting harder to find carriers,

other than the one in bed with an association for retired people, that (so far) have not played the Medigap shuffle.

I have not gone completely to the dark side. Not appointed with brand X. They don't need brokers and I would rather not try and compete with a carrier that doesn't care if they ever write a piece of business with a broker.

I also let the client know we will be shopping rates at least every couple years. I think MoO and others are not closing books as fast as they used to and rates seem to be more stable. I write all three and they seem to stay competitive now until early 70's (client's age) for the book I have.

GA is issue age but I think NC and SC are attained age. Seems like the issue age rates are harder to justify a move until they have had the plan 5 - 7 years.

That theory goes away once a carrier retires a block in the state. I have had 3 carriers that I relied on to stick around. Two had a stable history for 20+ years. The 3rd was sketchy but I didn't pick them up until they had been here for 3 years. Figured I was safe.

I was wrong.

Two of the 3 carriers have since put everyone on a common renewal date. If your plan anniversary was May and the now common renewal date is July you get 2 rate increases in the same calendar year.

That's not a lot of fun especially if the increases are 10% x 2 or, like one carrier, 15%+ followed by 10%.

 

[Newby]

I’ve never had anyone reject them from anything they have “read online.” I have had people very offended by them due to their experience with rate increases on Med sups.

Back about 10 years ago MOO had really good rates on current Med sups but anyone you would run across that had been with them four or five years was paying very high premiums and they were pizzed off from the double digit increases every year. I’m sure that is what you are hearing.

In my state (Indiana) the DOI even sent a warning letter out the everyone with the famous MOO Plan N advising them to get away from the plan if they had any chance to. The DO I was going to allow the plan rates to have drastic increases due to the errors MOO made when they priced it.

For that reason you just have to test the waters a little bit. But that’s really true with any well-known brands.

In a few states that I market in they have been the price leader with their United World Life Med Supp Product.

I've have put a few hundred policies on the books with them in the last couple years, as their rates, especially with the 12% household discount, have been really good on the T65s.

I'm trying to come to a decision as to whether I will continue writing them as I've seen some posts here on the forum and also have passing feed back from clients who rejected MOO after "reading online" about big rate increases.

Would appreciate hearing from some of the long-time producers here who have kept an eye on or wrote MOO as to how their rate stability has been over the long term as compared to the other carriers.Thanks![/QUOT

 

[Russ]

I write MOO med-supps in the Florida panhandle. Especially females turning 65. Rates are very good.

 

[StephanieCJ]

They aren’t competitive at all where I am unless you are under 65 disability. Even still, most of those clients prefer the MA because of the premium difference. I occasionally get someone who walks in and says they want MoO. I let them know there are other carriers that offer the same plans at a lower cost, but if they want MoO then that is what I sign them up for. At least they can’t come back and say I didn’t tell them.

 

[somarco]

Except for United American and "AARP", most every carrier has been competitive at one time in Georgia.

If they stayed that way life would be easy.

But they don't.

Carriers that have been in the business 20+ years are not as competitive as they once were. But it seems like every carrier that entered the market in the last 3 years have super competitive rates for about a week until someone new comes along.

It is a race to the bottom to see who can throw out the lowest rate.

That is a race agents and clients will never win as long as renewals are underwritten.