Your suggestions for underwritten MedSupps/Plan G

[yorkriver1]

Super helpful! One last bit, using CSG, would you compare the current carrier's increase history with that of a solid alternative along with the number of total enrolled in all states, and also total enrolled in the state of residency of the prospect. With that, we know who would win--state--Anthem, national, UHC, with state vastly larger than anyone else besides Anthem who is the only other one over 100K enrolled in VA.
So if accepted, at least a roll of the dice that the larger carrier's rates could be more stable? Even if saving $10/15 per month. Final caveat to client, none of this is guaranteed.

 

[LostDollar]

Hoping to avoid the big rate increases that some carriers who do loss leader rates have to do. My prospect's adult child is managing the money. Aetna Life and Health rates went up for 10/1/23, Plan G about to be $209/month. The prospect is T76 in October.
I have been approached by the adult child for advice about medically underwritten alternatives that might have a decent chance of rate stability.
Medical the usual cholesterol/blood pressure meds, + thyroid. Health probably will pass, Ht/Wt ok.
Choices now for lower rates:
Medico(Wellable)
AARP UHC (no UHICA in our state, Virginia) doesn't save much, but hopes for stable rates
Humana
Anthem BCBS no big savings, but age rating stops at age 75
Any suggestions wellcome.
Also ranking ease of medical underwriting process.
Thanks!

Caveat, I am NOT an agent.

After the first 12-14 months, my Medico HDF plan had annual increases as regular as clockwork.

And the following comment is just a personal opinion about a pricing factor which I am sure is not going to change:

I personally dislike the use of household discounts to manipulate price rankings in carrier price competitions.

 

[LostDollar]

Super helpful! One last bit, using CSG, would you compare the current carrier's increase history with that of a solid alternative along with the number of total enrolled in all states, and also total enrolled in the state of residency of the prospect. With that, we know who would win--state--Anthem, national, UHC, with state vastly larger than anyone else besides Anthem who is the only other one over 100K enrolled in VA.
So if accepted, at least a roll of the dice that the larger carrier's rates could be more stable? Even if saving $10/15 per month. Final caveat to client, none of this is guaranteed.

Again, Caveat, I am NOT an agent.

I have been a forum member for something over 6 years. In that time I have seen posts again, and again, and again, which express the basic comment that attempting to predict the degree of carrier rate increases is a fools' game.

I also keep in mind the basic concept of a comment which somarco has made more than once: "clients are quite selective in what they remember out of what the agent tells them at time of product purchase".

I don't know what the right way for an agent to discuss your concern with clients is, but based on what I see here, and my personal experience as a consumer, I would urge great caution in how you choose to discuss Medigap price increase with your clients and prospects.

 

[yorkriver1]

Kind of you to be concerned. Yes, I will point out that there is little ultimate control over rate increases. I do know, however, that their current company is blocking off books of business, and who knows even ones who don't now, could do so in the future.

 

[somarco]

Super helpful! One last bit, using CSG, would you compare the current carrier's increase history with that of a solid alternative along with the number of total enrolled in all states, and also total enrolled in the state of residency of the prospect. With that, we know who would win--state--Anthem, national, UHC, with state vastly larger than anyone else besides Anthem who is the only other one over 100K enrolled in VA.
So if accepted, at least a roll of the dice that the larger carrier's rates could be more stable? Even if saving $10/15 per month. Final caveat to client, none of this is guaranteed.

OK, that's more than ONE last question . . . penalty box for you!

CSG rate history information is mostly useless. Their enrollment info is a bit better but is stale, especially if the carrier is new to the state. National numbers are likewise stale (by at least a year) but more reliable, although mostly useless since that data is based on how much the PARENT wrote, not the downline carrier.

One would think a larger carrier (by lives on the books) would be more stable but that does not translate into a crystal ball for future rates.

I don't use UHC so I can't comment but I believe they may have had some structural rate changes in recent years. Anthem and at least some of their subs changed from unisex to M/F rates a few years ago and that upset the apple cart not only for the transition year but also future years.

Bankers Fidelity (a Georgia company) did the same a few years back. They are probably more of a regional carrier than national but they have had 30 years or so in the Medicare market.

Point is, changes in the way rates are calculated will mess up any extrapolation in predicting future rates.

I find I have better luck picking tomorrow's winning lottery numbers than I do predicting rate increases.

 

[LostDollar]

Bankers Fidelity (a Georgia company) did the same a few years back. They are probably more of a regional carrier than national but they have had 30 years or so in the Medicare market.

I got my come-uppance with them, guessing on rate increases.

I found a way to watch their rate changes and then watched their rate changes for HDF in multiple states for around 6 months. They had few posted rate increases for that plan type in that 6 month period. So, even knowing they were getting ready to close the book on that carrier name, I got an HDF plan just a few months before they closed that book in KS.

Guess what happened 12 months after my purchase date!

(My pseudo-agent rate change guessing skills were not very good! So far, score one for the real-agent general wisdom, zero for me. We'll see what happens on the next anniversary.)

 

[Dave G]

Hello YorkRiver:
Have been there and like the area. Sorry to be late on this question, but nobody really addressed underwriting. I've had good success in both VA and MD with Cigna on Med Supp. They have the ability to customize an offer with up to 4 rating categories. I've found them a bit aggressive in the client's favor. This means you're likely to get an offer even on tough cases. While usually not the lowest rates, they are usually competitive. They expect to roll out fast-track decisions on underwritten cases very soon.

Cigna also comes up often as a low-cost PDP plan and will begin paying agent comp on PDPs plans for 2024. Talked to our local Cigna rep today.

Also just contracted with ACE and Lumico. Lumico carries an A+ rating from AM Best, has competitive rates and in about 40 states. Lumico is owned by SwissRe. The A+ rating is solely based on Lumico, not the parent. This is SwissRe's first foray into coverage direct to consumer. Until now, they have been a re-insurer, only. Btw, SwissRe Ag stock currently yields 6.66%. If you're in the insurance biz and don't track insurance company stocks (and own some in your retirement accounts) you're missing out.

 

[goillini52]

. Btw, SwissRe Ag stock currently yields 6.66%.

Mark of the devil.

 

[Dave G]

Huh, didn't notice. Also didn't notice until settlement that my house sits on lot 666 of our development. And I've always been lucky. Hmmm...I don't remember checking off any "I consent and agree" box then.

 

[goillini52]

Huh, didn't notice. Also didn't notice until settlement that my house sits on lot 666 of our development. And I've always been lucky. Hmmm...I don't remember checking off any "I consent and agree" box then.

You need to move.