Medicare Supplement Plans Prior to 1980?

[russelltw]

If you look at the last page, bottom right of the pdf, it shows $111 for 12 months premium.

 

[somarco]

$111 for 12 months premium

Wonder how much the commission was

 

[bouckville]

Wrote my first Med Supps thru MoO in 1974. Plan resembled G plan(mostly) with part B deductible of $50/60.
Cost of plan was $12/month with agent commission of $35/$170 in today's purchase power, with BONUS of
$25/$133 in current purchase power.

Many seniors went with only Medicare A/B only "I'll just take my chances." The (insurance) unpaid Part B balance tended to be hard to collect from seniors. Yes, those that could often purchased multiple supps for piece of mind. That and purchasing 20 or 40% Part B indemnity plans (did not coordinate), this being into the 1980s and 90s.

Notable then (1970-1980s) was meeting widows who lost her husband's railroad pension when he passed.
No recourse for widow to continue receiving "husband's" RR pension. Don't recall Medicaid being helpful to seniors I met in this timeframe. Seniors seem less worse off these days. Fewer economically disadvantaged and pathetic "lower middle class" cases. This in a rust belt/small town area in dairy farm upstate NY( 5 hours north of NYC) near Syracuse.

That's my best recollection of 40+ years ago, hope that informs. "Good DAYTIME business" our sales manager said, versus meeting prospects after 5pm to sell disability income/life plans. Doctors drove newer Buicks and most prescriptions aere $2-9 (no LIS). Not an easy era to sell insurance in my opinion.

 

[dandan]

United American in 1982 the premium was $495.00 per year and a $10 app fee, commissions were 50% and renewals were 15% lifetime renewals.

 

[Chazm]

United American in 1982 the premium was $495.00 per year and a $10 app fee, commissions were 50% and renewals were 15% lifetime renewals.

Seems like it's better now.

 

[dandan]

It was pretty easy back then to make $1500 - $2000 a week in new commissions, knocking on doors.

 

[rousemark]

Seems like it's better now.

Allowing for inflation, that would be $1307 Annual Premium for a commission of $663 (counting the policy fee).. That is three times what is paid today on first year. Actually my commission rate was 60% first year so iy was even better. Plus, on business issued prior to 1984, we received commission on premium increases. Another difference is the majority of the business we wrote was on an annual premium basis and we submitted nets. You deposited the check made out to the company into your account, sent the company a check for their share when you mailed the app and kept the rest.

 

[rousemark]

Wrote my first Med Supps thru MoO in 1974. Plan resembled G plan(mostly) with part B deductible of $50/60.
Cost of plan was $12/month with agent commission of $35/$170 in today's purchase power, with BONUS of
$25/$133 in current purchase power.

Many seniors went with only Medicare A/B only "I'll just take my chances." The (insurance) unpaid Part B balance tended to be hard to collect from seniors. Yes, those that could often purchased multiple supps for piece of mind. That and purchasing 20 or 40% Part B indemnity plans (did not coordinate), this being into the 1980s and 90s.

Notable then (1970-1980s) was meeting widows who lost her husband's railroad pension when he passed.
No recourse for widow to continue receiving "husband's" RR pension. Don't recall Medicaid being helpful to seniors I met in this timeframe. Seniors seem less worse off these days. Fewer economically disadvantaged and pathetic "lower middle class" cases. This in a rust belt/small town area in dairy farm upstate NY( 5 hours north of NYC) near Syracuse.

That's my best recollection of 40+ years ago, hope that informs. "Good DAYTIME business" our sales manager said, versus meeting prospects after 5pm to sell disability income/life plans. Doctors drove newer Buicks and most prescriptions aere $2-9 (no LIS). Not an easy era to sell insurance in my opinion.

We wrote our first supp about the same time.. Mine was with United American who was THE player for the independent agent in those days. Seniors do much better today but I found those days to be a good time to sell insurance.. And, it was good daytime business in those days. Seniors stayed home more in those days than they do today.

 

[JimmyCrappedCorn]

But what were the premiums though? Also, cost of care was so much less than it is today....

In the mid to late 80's the annual premium for the top of the line United American medicare supplement here in Nebraska was $863. How do I still remember that? Easy, the combination for my 3 reel briefcase was set at $863. At 60% commission if you sold one of them in a week you made $500 which would pay the bills. If you sold 2 a week you made a thousand and were having a great week. If you sold 3 or 4 a week then it was Heaven.