Medigap High Deductible Plan F

[somarco]

There are many agents who sell these and very few who understand them.

In my brief time on the Medicare side, what I see is just plain scary.

When I talk to a senior that has talked to several agents. They (senior) are more confused than ever.

 

[healther]

Traveling with an MA vs. a Supp... a key question would be whether or not you would need to see your primary care physician or a specialist while traveling. If they plan on keeping their current docs in their current areas then the Supp isn't going to travel any better than your typical MA.

 

[GreenSky]

Traveling with an MA vs. a Supp... a key question would be whether or not you would need to see your primary care physician or a specialist while traveling. If they plan on keeping their current docs in their current areas then the Supp isn't going to travel any better than your typical MA.

I disagree. If you occasionally travel, that's one thing. But if you really have no "home," then a supplement makes much more sense.

Set up an address in a state with cheap plans and buy Plan N or even High F. Get a drug plan with a formulary you can live with. WalMart plan may be okay, but check the formularies.

With an MA plan - even if there is a "blue card" - limits your ability to see physicians.

Rick

 

[Todd King]

Traveling with an MA vs. a Supp... a key question would be whether or not you would need to see your primary care physician or a specialist while traveling. If they plan on keeping their current docs in their current areas then the Supp isn't going to travel any better than your typical MA.

If they need to see their PCP instead of just any PCP that accepts Medicare assignment, then they would have to be near their PCP and therefore wouldn't be traveling now would they?

 

[brooks]

First time I ran into a client wanting a one of these rascals.

Healthy 90 y/o. Planned on writing a "G" for around $2300.

So, I stop by his LUXURY apartment. Excel spreadsheets all OVER the place! (ex-engineer). I NEVER have luck with spreadsheet types.

Anyway. We go over everything. Seems comfortable with a "G". Money not an issue.

He then asks "What about those "F (Hi) deductible plans?" I explain them to him. He wants a price. $700 from one carrier, $1200 from another.

Of course ... the $700 interests him. His "spreadsheet" tells him a $1,600 difference in annual premium will go a long way towards covering the $2K deductible. He then proceeds to project the $1,600 out over 5, 6, 7 years. Says he will save $10K over 5 years if he is doesn't have health issues.

Geez. From $2300 to $700 in one swoop.

I can't agree more with Rick. Can't make a living @ $700 a pop. Next time? I'm telling them I do not have a carrier offering the "F (Hi)."

 

[Mink]

For agents it is a commission issue. If they both paid the same commish, The High F would be #1 plan sold.

 

[SportsNut]

First time I ran into a client wanting a one of these rascals.

Healthy 90 y/o.

So, I stop by his LUXURY apartment. Excel spreadsheets all OVER the place! (ex-engineer).

. $700 from one carrier, $1200 from another.

. Says he will save $10K over 5 years if he is doesn't have health issues.

A few things struck me in this post...

Nice, healthy @ 90 yo.
The spreadsheet and the analyzed savings over 5 yrs is probably why he is living in the LUXURY apt.
$ 700 prem to a 90 yo. wow.
Sounds like he made a good buying decision. I would work him for some referrals; not all of his friends will be so fortunate and enjoy the savings of a Hi-Ded Plan F.

 

[moonlightandmargaritas]

Healthy 90 y/o. Planned on writing a "G" for around $2300.

Planned? Based on what?

I NEVER have luck with spreadsheet types.

So why bother? That desperate for prospects?

His "spreadsheet" tells him a $1,600 difference in annual premium will go a long way towards covering the $2K deductible.

Sounds like the guy is pretty savvy. You're at a loss with smart people?

Next time? I'm telling them I do not have a carrier offering the "F (Hi)."

That's some awfully weak sauce. Don't think they'll find someone who has one? With this kind of attitude, do us all a favor and get out of the business. Your kind gives us all a bad name.

 

[Norwayguy]

First time I ran into a client wanting a one of these rascals.

Healthy 90 y/o. Planned on writing a "G" for around $2300.

So, I stop by his LUXURY apartment. Excel spreadsheets all OVER the place! (ex-engineer). I NEVER have luck with spreadsheet types.

Anyway. We go over everything. Seems comfortable with a "G". Money not an issue.

He then asks "What about those "F (Hi) deductible plans?" I explain them to him. He wants a price. $700 from one carrier, $1200 from another.

Of course ... the $700 interests him. His "spreadsheet" tells him a $1,600 difference in annual premium will go a long way towards covering the $2K deductible. He then proceeds to project the $1,600 out over 5, 6, 7 years. Says he will save $10K over 5 years if he is doesn't have health issues.

Geez. From $2300 to $700 in one swoop.

I can't agree more with Rick. Can't make a living @ $700 a pop. Next time? I'm telling them I do not have a carrier offering the "F (Hi)."

Think about it the savings in year 1 leaves only a $400 exposure to the client sounds like its time to take Yes for an answer and write the app.

By the way next guy in the same situation when you tell him you don't offer it you go from $2300 to $0 what's the commission on that over 5 years maybe Mr spreadsheet can help you out.

Really what is your commission plus renewals over 5 years for this client?

 

[jvancleve]

High Ded F has never made sense to me! It just doesn't seem to make economic sense.

Just read these various posts from last year on the Hi Ded F. I am still surprised how many agents think it combines the deductible with Medicare, which simply is not true. The deductible is only applied to the Medicare Supplement portion; Medicare pays the same regardless of which Medicare Supplement a person has. I believe the high deductible plan F makes economic sense for healthy seniors and agents alike.

If the President came on TV and said, "We are making a change to Medicare; all benefits and coinsurance will remain the same, but we are putting in an annual enrollee out of pocket cap of $2,070 for both Part A and Part B", most individuals would probably not buy any other supplemental insurance. Well, this is exactly what happens with the High Ded F.

A 65 year old male healthy non-smoker may pay approx $1700/yr for a Plan F vs. $600/yr for a Hi Ded F, saving $1,100 per year in premium. Assume he has Part B claims and pays his $140 Part B deductible, reducing his annual savings to $960 ($1100 - $140). His more probable ongoing claims will be under Part B - he has to have another $4800 in annual Part B claims ($960/.20 co-insurance) before he offsets his premium savings. That is much higher than the average annual Part B claim per enrollee.

The Hi Ded F is a plan to consider; many seniors are used to carrying Hi deductible plans on their car insurance and the risk/reward trade offs fit what they want to achieve. Also, the Hi Ded F looks like many group plans that Medicare eligibles are on, but usually costs much less - so the Hi F can be an attractive alternative.

Much talk about commissions - for those that really know how to sell - in virtually every case an agent should be selling a Short term care policy with the Hi F. The total premium is normally still less than the standard F, and covers the client for the bigger $ exposure item, nursing/professional care following an illness or injury. Total agent commission will be 40-50% higher than just selling the standard F.

Thoughts?