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- #11
crs6633
Expert
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Hi, dont forget that each state department of insurance has to approve medigap rate adjustment requests for their own state. The DOI should be reviewing the financials of that company and results they have achieved within their particular state as well as nationally. If you live in a relatively small state, the insurance examiners may request and combine similar sized states in their financial analysis...their goal is to determine if the requested rate increase is 'reasonable'. In my state, these people are doing a good job (IMO) and will deny then negotiate with the insurance company on the requested rate increase if it isnt reasonable.
If you have not already done so, you might check to see if your state's doi provides access to the serff filing database. If so, this is an easy place to check on rate increase requests that are coming up.
One of the 8 measurements i use on medigap insurance companies to see if they can make on my recommend list is to look at the company's last 3 years medical loss ratio. If this ratio is 2 or more points higher than the national average, they dont get on the list. Also if a company has been in the medigap business 3 years/less, they dont either. Why? The fed's did a study of companies that has sequential double digit rate increases...the winners were companies that came to market with low ball rates and had been in the medigap business 3years/less.
I dont care for the past MOO model for doing business either and dont recommend their products. I see GPM (MOO takes care of their back office operations) has introduced their 2nd newly spawned company for selling their Medigap plans in my state (GPM's original entry is no longer competitive in my state)...i wont recommend them either.[/QUOTE
Spud, a thousand thank you's to this response. This is exactly what I've been searching to answer for some time now. Appreciate you taking the time!
