Interesting article on med sup business

[DonP]

[EXTERNAL LINK] - Marginal Gains in the Medicare Supplement Market

2 things stuck out for me . First lapse rates 11% for open blocks of business and 16% for closed blocks . Lapse rates higher than I thought . But what really was eye popping is profit margins much higher on closed blocks of business . I guess big big rate increases offset the claims

 

[LostDollar]

what are senior private exchanges?

Is an automated underwriting system a good thing or a bad thing from an independent agent perspective?

 

[LostDollar]

Caveat, I am not an agent.

Given all the recent contention here, this is the thing that most struck me in the article.

Just looking at the generational demographics, the opportunity in the Med Supp space will continue.

Under heading, The Future.

 

[LostDollar]

What is the difference between a captive agent and an in-house salaried call center agent?

 

[Chazm]

What is the difference between a captive agent and an in-house salaried call center agent?

I’ve always thought it as, captive agents sell one company. “I work for Humana.”

 

[Newby]

Something that really blows in the Med Sup biz is when you have built up a big block of Med Sups in a state and then that state goes to a Birthday rule and doesn't require the carriers to pay the agents more than the one time $25 fee. Your entire renewal base goes poof fast when that happens. Everyone calling for your help and you are converting them from $250 renewals to a $25 token.
We are just about to find out in Kentucky. Theirs goes into effect January 1st.

 

[kstein]

We have it good here in Missouri. Cigna is paying around 18% on anniversary rule biz. Anthem was paying 26% w bonus.

 

[sshafran]

Something that really blows in the Med Sup biz is when you have built up a big block of Med Sups in a state and then that state goes to a Birthday rule and doesn't require the carriers to pay the agents more than the one time $25 fee. Your entire renewal base goes poof fast when that happens. Everyone calling for your help and you are converting them from $250 renewals to a $25 token.
We are just about to find out in Kentucky. Theirs goes into effect January 1st.

Ouch

 

[somarco]

Thankfully, BD rules are sparsely represented.

[EXTERNAL LINK] - What States Have the Medigap Birthday Rule?

And NY, CT, OR, VT, WA have year round enrollment.

 

[DonP]

Interesting 6 new states added the birthday rule since 2022 . Only 8 have . Will more and more states add this ? More importantly of those 8 states how many pay full comp ? I recall reading it’s treated like Gi comp in many states . What prevents customers from shopping this ? And more importantly if it pays ok to regularly comp that means you got to be shopping your client yearly are somebody will poach your business .