Medicaid Ending Question

[somarco]

Very few companies offer it, so they think they can fool you into thinking Plan L is a niche product.

They didn't fool me.

 

[somarco]

rescinded Med Supp policy,

@Todd King you may know this. Were the rules for rescinding a Medigap policy changed a few years ago? In the case of fraud, the policy can be rescinded but NOT retroactive to the effective date. Carrier is still liable for claims up to the rescission date but not afterwards.

 

[Todd King]

@Todd King you may know this. Were the rules for rescinding a Medigap policy changed a few years ago? In the case of fraud, the policy can be rescinded but NOT retroactive to the effective date. Carrier is still liable for claims up to the rescission date but not afterwards.

It can be, but in all your years did you ever see it. I have not. The only thing I've seen close to that is when a client had 2 med supps and had to get one of them rescinded.

 

[Todd King]

Todd I’ve asked about the rescinded med sup policy . To be fair I’ve also never heard of one rescinded. But out if 10’s of millions of sups written I assure you 100’s of thousands have big or small lies on them . You’ve been doing sups a long time . What happens if someone had cancer and switched sups . Are you telling me the sup company won’t rescind ? Surely that happened many times over 10’s of millions of policys

Most of the time it wouldn't even be issued to begin with.

 

[somarco]

It can be, but in all your years did you ever see it. I have not. The only thing I've seen close to that is when a client had 2 med supps and had to get one of them rescinded.

Two come to mind . . . both cases were underwritten and client lied on the application. Both rescinded, can't recall if the rescission was retro or not.

Had another rescission where I "replaced" an MA plan with Medigap, the guy didn't want PDP (and I didn't press him) but he agreed to call and cancel the MA plan. Over a year later he called the Medigap carrier to cancel because "they never paid any claims" . . . turned out he never cancelled the MA so the Medigap was cancelled and I got the chargeback.

This was maybe 8+ years ago. I wouldn't make that mistake again

 

[Todd King]

Two come to mind . . . both cases were underwritten and client lied on the application. Both rescinded, can't recall if the rescission was retro or not.

Had another rescission where I "replaced" an MA plan with Medigap, the guy didn't want PDP (and I didn't press him) but he agreed to call and cancel the MA plan. Over a year later he called the Medigap carrier to cancel because "they never paid any claims" . . . turned out he never cancelled the MA so the Medigap was cancelled and I got the chargeback.

This was maybe 8+ years ago. I wouldn't make that mistake again

I guess I just got lucky with my clients then. Either that or the companies I used to write them with did a better job of UW. I have no idea.

 

[DonP]

I guess I just got lucky with my clients then. Either that or the companies I used to write them with did a better job of UW. I have no idea.

As Somarco as said it happens out of 10’s of millions of plans . The question then becomes the client could have a hell of time getting a med sup. He might not be able to get a mapd plan as he has no sep

 

[yorkriver1]

One reason I haven't made a big push for shopping my longer term MedSupp clients to get a lower rate with another carrier. They may/may not deliberately leave out medical information on the app. I guess it could be an off open enrollment project.

 

[somarco]

One reason I haven't made a big push for shopping my longer term MedSupp clients to get a lower rate with another carrier. They may/may not deliberately leave out medical information on the app. I guess it could be an off open enrollment project.

Most of my clients are honest but they will forget things.

A few years back a lady forgot her doc said to come back in 6 month to check the progress of her cataracts. About a week before the effective date she called to advise me of the situation and I told her to call the carrier.

Because she was honest they agreed to issue the policy and could cover any claims.

They could have withdrawn the offer but they didn't. I have a very good, longstanding relationship with them and it continues to this day.

 

[yorkriver1]

Most of my clients are honest but they will forget things.

A few years back a lady forgot her doc said to come back in 6 month to check the progress of her cataracts. About a week before the effective date she called to advise me of the situation and I told her to call the carrier.

Because she was honest they agreed to issue the policy and could cover any claims.

They could have withdrawn the offer but they didn't. I have a very good, longstanding relationship with them and it continues to this day.

Good reminder! I actually had to do that on an individual health insurance plan for my family back in the day prior to ACA rules. Called the carrier shortly after approval and told them one item left out. They were similarly OK with the situation.