and you always got GI on those??
Why did I only get paid $5 commission on a new to medicare supplement?
- Thread starter jack3454
- Start date
and you always got GI on those??
Here's a different GI trouble spot: My home state of Maryland just started the "Birthday Rule." You can now apply for a new Supplement (letter plan of equal or less value) on GI basis within 30-days of your DOB. I think total of 6 states now have this. Good deal for the consumer....BAD deal for agents as case pays meager GI comp. In the long run, it may still even be a BAD deal for clients. One major carrier rep told me they expect needing 15 - 20% rate increases in next year or so to offset the higher risk business.
So if you want to do the "right thing" for the client, you have cut your comp from say 22% to 2% if still within say 6-years or so from initial issued. Yes...I know, I could suggest to the client to submit with underwriting, but that is just an awkward conversation.
I've always said, if the insurance companies could get rid of agents, they will do so. Now our state legislature is helping them with this new rule. Odd was the fact I never heard anything about it until 30-days before it started. Fortunately, I'm on the back-9 of my insurance career and still have plenty of clients in neighboring states.
So if you want to do the "right thing" for the client, you have cut your comp from say 22% to 2% if still within say 6-years or so from initial issued. Yes...I know, I could suggest to the client to submit with underwriting, but that is just an awkward conversation.
I've always said, if the insurance companies could get rid of agents, they will do so. Now our state legislature is helping them with this new rule. Odd was the fact I never heard anything about it until 30-days before it started. Fortunately, I'm on the back-9 of my insurance career and still have plenty of clients in neighboring states.
[QUOTE="
. Yes...I know, I could suggest to the client to submit with underwriting, but that is just an awkward conversation.
.[/QUOTE]
Its easy if you can pass underwriting why in the world would you even mention GI
there is no reason to even speak about it if they can do underwritten
. Yes...I know, I could suggest to the client to submit with underwriting, but that is just an awkward conversation.
.[/QUOTE]
Its easy if you can pass underwriting why in the world would you even mention GI
there is no reason to even speak about it if they can do underwritten
Funny exact same thing just happened in Oklahoma . Rule went into effect 9-1-23.
Wasn't even made publicly know until 9-7-23. First it was going to be an Anniversary Rule, then they changed it to Birthday Rule. It was done administrationally not legislativeĺy. So no one knew. Aetna, MO, UA,Blue Cross didn't even know the law had gone in effect in our state till I contacted them trying to get info. Wonder if if there is something in the water.
I'm going to try and work with a friend in the legislature(insurance agent too) and see if we can pass legislation requiring compaies to pay full commision On GI. I expect push back. In some states this is law. Otherwise clients suffer because no agent will give them the time of day.
Interesting fact the closed blocks are the most profitable not the new ones. This maybe shake things up if companies lose those blocks. Blue Cross is standing tall saying they will pay full comp on GI. They just might do it.
Wasn't even made publicly know until 9-7-23. First it was going to be an Anniversary Rule, then they changed it to Birthday Rule. It was done administrationally not legislativeĺy. So no one knew. Aetna, MO, UA,Blue Cross didn't even know the law had gone in effect in our state till I contacted them trying to get info. Wonder if if there is something in the water.
I'm going to try and work with a friend in the legislature(insurance agent too) and see if we can pass legislation requiring compaies to pay full commision On GI. I expect push back. In some states this is law. Otherwise clients suffer because no agent will give them the time of day.
Interesting fact the closed blocks are the most profitable not the new ones. This maybe shake things up if companies lose those blocks. Blue Cross is standing tall saying they will pay full comp on GI. They just might do it.
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Thanks Millwood for the follow up and details. Changing rules administratively that impact our livelihood is disturbing. This is probably what happened in my state where we've suffered from One-Party rule for decades. Every now and then an "independent" minded Republican gets elected governor. Our current gov is Wes Moore (yes, the author Wes Moore) so not likely he or our legislature gives two hoots about this issue. In OK my guess is you are more likely to get a fair hearing.
Thankfully, I write in 6 other states but MD is easily my biggest block. I get how GI business may not deserve full comp, but should pat at LEAST half the Open Enrollment rates.
I have used the birthday rule to advantage. Recently, a new prospect called aging into Medicare. Her husband 70 has a Supplement elsewhere with a DOB next June. So I ask does he want to wait until then to save money or start saving now by sharing his medical status?
The other aspect to this is Medicare Advantage. I'm a firm believer they do not serve people as reliably as Original Medicare. Yet, there is no "penalty" to the agent to write these plans so will further incentivize agents to write these instead. I may just stop trying to talk anyone out of an Advantage plan if they think that's the way to go.
Thankfully, I write in 6 other states but MD is easily my biggest block. I get how GI business may not deserve full comp, but should pat at LEAST half the Open Enrollment rates.
I have used the birthday rule to advantage. Recently, a new prospect called aging into Medicare. Her husband 70 has a Supplement elsewhere with a DOB next June. So I ask does he want to wait until then to save money or start saving now by sharing his medical status?
The other aspect to this is Medicare Advantage. I'm a firm believer they do not serve people as reliably as Original Medicare. Yet, there is no "penalty" to the agent to write these plans so will further incentivize agents to write these instead. I may just stop trying to talk anyone out of an Advantage plan if they think that's the way to go.
I wouldn’t tell CMS you are talking anyone in or out of any Medicare plans. Clearly states we are to offer them their options and let the client choose. Got asked 3 times today what they should do. I answer my job is to lay out all your options and how each plan works and the client decides.
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Actually, it's eligible for Medicare before 01/01/2020.
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Its easy if you can pass underwriting why in the world would you even mention GI
there is no reason to even speak about it if they can do underwritten[/QUOTE]
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Some companies make you go GI if the client qualifies for GI, even if they can pass UW. They'll beat you out of your commissions if they can.
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Some companies make you go GI if the client qualifies for GI, even if they can pass UW. They'll beat you out of your commissions if they can.[/QUOTE]
UHC will do that, with trial right I found out, but I never had one do that for a bday rule though I havent marketed MO or CA since 2014 but it did not happen then
and also on most apps you have to check off if you are applying for GI OE or underwriting
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Some companies make you go GI if the client qualifies for GI, even if they can pass UW. They'll beat you out of your commissions if they can.[/QUOTE]
Aren’t you literally lying on the app when it asks if you are applying under a guarantee issue and you answer no? Never knew how agents answer all those questions on the app.
