- 305
Everybody needs to make up their own mind on this, but I like it for many reasons. Also, I don't think there's a direct comparison to MOO's GI plan N.
1. I like that this expands the market. Lowest premium Medigap is a zero sum game (there's only ever one lowest). This opens new possibilities to write MORE business, not just a new carrier that happens to be lowest at a point in time.
2. I've had situations where I could underwrite one spouse and not the other, so they stay put. In this case, you could write both and they will get a spousal discount to boot.
3. MOO was relying on mix of business on the GI plan N. They were giving preferred rates, full commission, commission on disability and NO underwriting. They ended up with a lot of ESRD, especially in TX where previously only plan A was available. This plan pays lower commission, has higher premium, has limited underwriting, etc. It's priced exclusively for substandard risk, since they also have a preferred rate, they know they are only getting substandard business. Almost 50% of Medicare claims come from 5% of the Medicare population, so a little underwriting can make a big difference.
4. Even if you have a GI option now, I like having a second option. Assuming the pricing is better (or you can use the spousal discount), now you have the ability to replace an existing carrier (like BC or AARP). About 50 - 60% of in force Medigap is AARP and BC, so it's nice to have an option that's not one of them.
There isn't a lot of information out there now until they start releasing states and getting more state approvals.
I'm a distributor for Cigna Senior Supplemental, so if you are interested in getting a contract, PM me.
1. I like that this expands the market. Lowest premium Medigap is a zero sum game (there's only ever one lowest). This opens new possibilities to write MORE business, not just a new carrier that happens to be lowest at a point in time.
2. I've had situations where I could underwrite one spouse and not the other, so they stay put. In this case, you could write both and they will get a spousal discount to boot.
3. MOO was relying on mix of business on the GI plan N. They were giving preferred rates, full commission, commission on disability and NO underwriting. They ended up with a lot of ESRD, especially in TX where previously only plan A was available. This plan pays lower commission, has higher premium, has limited underwriting, etc. It's priced exclusively for substandard risk, since they also have a preferred rate, they know they are only getting substandard business. Almost 50% of Medicare claims come from 5% of the Medicare population, so a little underwriting can make a big difference.
4. Even if you have a GI option now, I like having a second option. Assuming the pricing is better (or you can use the spousal discount), now you have the ability to replace an existing carrier (like BC or AARP). About 50 - 60% of in force Medigap is AARP and BC, so it's nice to have an option that's not one of them.
There isn't a lot of information out there now until they start releasing states and getting more state approvals.
I'm a distributor for Cigna Senior Supplemental, so if you are interested in getting a contract, PM me.
