Does the Company Really Matter in Med Sups?

[goillini52]

I don't sell med sups but i'm starting to get many people asking me about them so its time to start learning it. All these co's like new era and oxford selling against giants like Aetna united health care and the Blues. Do all the co's pay claims the same? Do these small no name co's slow pay at times and say charges are outside what medicare approves? Are people wary to switch to no name outfits?In Fe the co's meaningless as the claim is down the road usually but with med sups claims will appear quickly.

Petey, as I've told you before...Medicare determines what the Med Supp will pay. The company has nothing to say about it.

I've found that some of the smallest companies are sometimes the easiest to deal with, the quickest to pay and have stable rates. They're trying to build a name and reputation.

 

[bill3173]

Apparently to some clients it does matter, which I found out the other day. I had a lady ask me for the AM best rating of all of the med supp carriers that
we discussed. She then explained to me the chasm of difference between A and A+ ratings.

It was slightly annoying, but I had to bite my lip to keep from laughing, we weren't buying $1M annuities or life insurance. Btw, I've never had such a thorough discussion, of this stuff, with a client in the last 11 years. As it turns out, she had some kind of half ass job with a financial ratings firm in the 1940s and wanted show off.

 

[xrac]

Apparently to some clients it does matter, which I found out the other day. I had a lady ask me for the AM best rating of all of the med supp carriers that
we discussed. She then explained to me the chasm of difference between A and A+ ratings.

It was slightly annoying, but I had to bite my lip to keep from laughing, we weren't buying $1M annuities or life insurance. Btw, I've never had such a thorough discussion, of this stuff, with a client in the last 11 years. As it turns out, she had some kind of half ass job with a financial ratings firm in the 1940s and wanted show off.

The worst people to deal with are those who think they know something.

 

[Ron Van D]

The worst people to deal with are those who think they know something.

Those who think they know it all are quite annoying to those of us who do.
-Greensky

 

[Elle03]

Does the Company Really Matter in Med Sups? Where can I find the information on companies' history of rate increases? I've been unable to find it. I've been in Medicare insurance for some time and am now working independently. I really appreciate this forum!

 

[Devin01]

In theory It doesn't matter because a med supp is a med supp, they r just paying the gaps in Medicare. And each client is different that you sit down with. Some people will only buy
AARP, so we sell them that. I try and write 4 to 5 companies and guide people towards them.

If you use a quoting engine you can see prices and published rates in the future. There is no way to 100 percent know which companies in the future will be taking rate increases as each carrier bases rates on claims experiences. there are exceptions to this some carriers start low and increase faster then others.

The best to learn this is to talk to someone who has been doing this for a while. My personal experience is New Era has been great with holding rates low while MutuAl of Omhaha and AARP have gone up a bit faster then others.. if you only have 5 or 10 clients in your book it really doesn't matter, but when you have thousands and clients and several hundred with each carrier it becomes more important.

 

[GoPokes]

Does the Company Really Matter in Med Sups? Where can I find the information on companies' history of rate increases? I've been unable to find it. I've been in Medicare insurance for some time and am now working independently. I really appreciate this forum!

A company is only as good as the people who represent it. Find a good agent, and you'll find the right company.

 

[somarco]

If you use a quoting engine you can see prices and published rates in the future.

What a deal . How far in the future can you see with this quote engine?

Where can I find the information on companies' history of rate increases?

The only way to find this information is to maintain carrier rate sheets for the state(s) where you operate. Some carriers keep rate increase bulletins and even rate sheets that go back a few years, but you have to know where to find them.

Consumers will never find them.

 

[kgmom219]

Here's my response to clients:

"You have 2 choices, assuming you don't want a B rated company. You use the cheapest A rated company or you go with Blue or UHC. Right now, XXX is the cheapest in Dallas. And they will continue to be the cheapest for 2 or 3 years. Then they will close the current pool and create a NEW company, called XYZ with low, great rates. All the people on XXX will migrate to XYZ, IF they are healthy and can get through underwriting. If you can't get through underwriting, then you are stuck in a closed pool and the pool is going to get older and sicker and the rates will start to increase significantly.

This isn't an issue with XXX, its how the industry works, with the exception of BCBS and UHC. UHC is not competitive here, because they own the MAPD market in Dallas and since they make more money on MAPD, their Supplements are not priced competitively. It would be a different answer in Florida. That leaves us with Blue, which is $300ish more per year. Which is not an insignificant number, but you also don't want to be the person calling me at age 72, who is in a closed pool, can't move and is paying $200 more than Blue every month.

I'm fine with you going on XXX, but understand that you are rolling the dice and are not allowed to yell at me in 3 years. The rates on XXX are going to go up 10% annually. Blue goes up about $5 annually and then there is a significant hike of $20-ish at age 67.5, 70, 72.5 and so on. There is no catch up if I can move you. The cheapest company will always be less. But as soon as your are uninsurable, its not pretty. Personally, I don't care which company you choose, as long as you understand the options."

I typed that from memory, because I say it so damn often.

The variation is when I already know they are uninsurable. I tell them upfront: whatever you pick today is going to be it for the rest of your life. Choose well.

I typically get 1 of 2 questions after that: what's the commission for you (rarely) or what are your parents on. (frequently)

Answer: $23ish PMPM for all companies. There's a specific amount, but that's about what it is. BCBS pays less percentage, but the dollars equal out because the premium is higher.

Answer 2: BCBS. I don't play around with my parents.

OP...big BUT for this. This is true for TX. It may not be true in the state you are in. BCBSTX is still "non-profit" (with $2 billion in the bank, but technically still non-profit). The rating rules for them is different than Anthem (which is for profit). You need to figure out the rating rules filed with the state you are in.

 

[LostDollar]

Consumers will never find them.

That was my experience after a lot of hunting and thoroughly irritating at least a half a forum's worth of insurance agents. The only thing I could come up with was rate history on the KS ins commissioner's site which A) doesn't help with closed companies or tell you which carriers are prone to close and reopen companies and B) I was told that the rate increases for first year premiums don't necessarily match to ongoing rate increases for existing customers.