Spud
Expert
- 93
Hi, I am seeing more insurance companies offer Medigap plans close their book of business when their premiums no longer remain competitive and then open a new book under a new subsidiary name and start the process over.
This practice may look good from a company's financial point of view, but the plan member that cant get thru underwriting (to switch plans/companies) may not share that same enthusiasm.
Some states have implemented the 'birthday rule' to give Medigap plan members the right to change plans without going thru underwriting either in the 30-day window before/after their birth month.
Are you aware of a study that is in the public domain that has researched the financial impact (lower monthly premiums in the long run) because of the birthday rule?
If you sell medigap plans and some of your customers have been caught up in the 'closed book of business situation', do you make them aware their vendor closed their book of business and point out their exposure to higher rates AND then their options to change plans to either another company's Medigap plan(s) or move to a MA/MAPD plan?
Thanks in advance for sharing your thoughts.
This practice may look good from a company's financial point of view, but the plan member that cant get thru underwriting (to switch plans/companies) may not share that same enthusiasm.
Some states have implemented the 'birthday rule' to give Medigap plan members the right to change plans without going thru underwriting either in the 30-day window before/after their birth month.
Are you aware of a study that is in the public domain that has researched the financial impact (lower monthly premiums in the long run) because of the birthday rule?
If you sell medigap plans and some of your customers have been caught up in the 'closed book of business situation', do you make them aware their vendor closed their book of business and point out their exposure to higher rates AND then their options to change plans to either another company's Medigap plan(s) or move to a MA/MAPD plan?
Thanks in advance for sharing your thoughts.