United of Omaha Medigap

[ValeRosso]

What is your experience with United of Omaha and their medigap plans? Do they raise rates more than the average? Are they a solid company to go with for medigap? Anything I should know?

I’m wondering this because 100% of my medigap clients are either Aetna, Humana, UHC, and a family member wants a medigap plan and UoO is coming in $20 cheaper per month, next being UHC. I’m biased towards my usual medigap companies, and I don’t want to blindly put her with a company that I have no medigap experience with, and I’d hate myself if I put her in a cheaper plan today and next year she’s already paying more than another carrier.

Thoughts?

 

[goillini52]

What is your experience with United of Omaha and their medigap plans? Do they raise rates more than the average? Are they a solid company to go with for medigap? Anything I should know?

I’m wondering this because 100% of my medigap clients are either Aetna, Humana, UHC, and a family member wants a medigap plan and UoO is coming in $20 cheaper per month, next being UHC. I’m biased towards my usual medigap companies, and I don’t want to blindly put her with a company that I have no medigap experience with, and I’d hate myself if I put her in a cheaper plan today and next year she’s already paying more than another carrier.

Thoughts?

MOFO is famous for starting cheap and quickly raising the rates. Don't hate yourself next year.

 

[somarco]

MOFO is famous for starting cheap and quickly raising the rates. Don't hate yourself next year.

Aetna plays the same game. They have 5 or 6 carriers in the rotation now. Omaha has about the same.

Humana now has Achieve and Value plans . . . no idea what those are about since they are not competitive here . . . the few cases I have are "mature" . . . they were a PITA to work with (carrier, not the client). Humana also offers an "early enrollment discount" . . . no idea how it works . . . could be another gimmick.

You need to learn how to sell yourself, not the carrier brand name, or the one with the lowest rate. The lowest rate game will eventually burn you.

 

[sman]

What is your experience with United of Omaha and their medigap plans? Do they raise rates more than the average? Are they a solid company to go with for medigap? Anything I should know?

I’m wondering this because 100% of my medigap clients are either Aetna, Humana, UHC, and a family member wants a medigap plan and UoO is coming in $20 cheaper per month, next being UHC. I’m biased towards my usual medigap companies, and I don’t want to blindly put her with a company that I have no medigap experience with, and I’d hate myself if I put her in a cheaper plan today and next year she’s already paying more than another carrier.

Thoughts?

As others have said, the Omaha companies tend to cycle through brands every 3-4 years. They start low, have reasonable rate increases for 3-4 years and then roll out a new brand and stop offering the current brand. For those healthy enough to switch to a new carrier, it's no big deal. For those not healthy enough, they typically get stuck in a cycle of 9%-13% rate increases annually. Aetna plays this same game. And to a lesser extent, so does Humana. It appears to be the norm and not the exception anymore. In my area, UHC is about the only one to not play this game. Anthem has done it in the past, but seems to be holding steady. Although they didn't make a brand change in 2018 and the pre-July 2018 clients are now experiencing 9.9% rate increases.

If you can't convince your family member why they should pay a little more now to save down the road, then give them what they want with the understanding that you aren't responsible for when the rates start increasing drastically. Chances are very good that you will have an "I told you so" moment a few years down the road.

 

[agentjhc]

UHC doesn’t play this game. Possible due to their AARP relationship. They seem to have built in increases every year. I’ve sold it. None have complained. However neither have the folks with increases from Anthem, Aetna, CIGNA, etc.

Is UHC more affordable at 70, 75, etc?

Most of you all have more experience with this than I do. Enough to make an agents head spin.

Is Mutual worse with long term rate jumps? I know they have had a few in GA and TN and have moved companies around.

I know an agent who basically offers Blue Cross/Anthem or UHC in TN and GA. For the reasons stated in this thread. As well as large books of business in each state. Their intro rates in both states are generally competitive.

 

[somarco]

Is Mutual worse with long term rate jumps?

I entered the Medigap market in 2010. At that time Omaha was United World. Later (in no particular order) they introduced United of Omaha, Omaha Insurance Company and more recently Mutual of Omaha. That is 4 carriers in 12 years.

Do the math.

In 2010 Genworth was reasonably strong then the block was purchased by Aetna and they went away (as a Medigap issuing carrier). Since that time we have seen (can't recall the order) "big" Aetna, Continental Life, First Continental, Aetna Health & Life, Aetna Health Insurance. Including Genworth, that is 6 carriers since 2010.

BX/Anthem and UHC probably win the rate stability game. BX had moderately competitive rates with a niche in 2010 . . . no tobacco load and unisex rates . . . if you had a male smoker they were a solid pick.

Since then they have added tobacco loads and M/F rates. If your client "identifies" and something other than M or F I don't know what you would do.

UHC was not particularly competitive here for several years (at least for T65) and were late to introduce the G plan (probably 2020). Probably 95% of my clients have G and it has been that way for a long time.

Humana was also late to offer the G plan.

There are also smaller, regional carriers that have demonstrated rate stability and staying power plus a few that bailed on the market (including one with a 30 year track record).

And don't overlook AFLAC that entered and left the market in 15 months or so.

If you want to make your Medigap business a long play you need to be light on your feet and sell yourself, not the issuing carrier, and certainly not the rate.

 

[sman]

BX/Anthem and UHC probably win the rate stability game. BX had moderately competitive rates with a niche in 2010 . . . no tobacco load and unisex rates . . . if you had a male smoker they were a solid pick

As you and I have discussed, Anthem is playing their 9.9% game on business issued prior to July 2018. And now with their announcement of a corporate rebranding, leads me to believe they won't hold steady on the current block beyond another couple of years. I hope I'm wrong.

Since then they have added tobacco loads and M/F rates. If your client "identifies" and something other than M or F I don't know what you would do.

I've been wondering how long it's going to take for carriers to begin using "other" for gender on applications. And I'm really curious to see how they will determine the rates.

UHC was not particularly competitive here for several years (at least for T65) and were late to introduce the G plan (probably 2020).

Close. It was 2018.

If you want to make your Medigap business a long play you need to be light on your feet and sell yourself, not the issuing carrier, and certainly not the rate.

This ^^^^ times 1,000.

 

[ValeRosso]

Thanks for your replies. In this case, I’m not trying to sell the rate, I’m simply trying to make the right decision for them and help them pay the least possible because of their financial situation.Ill stick with my regular companies just in case and hope for the best.

 

[agentjhc]

Thanks for your replies. In this case, I’m not trying to sell the rate, I’m simply trying to make the right decision for them and help them pay the least possible because of their financial situation.Ill stick with my regular companies just in case and hope for the best.

what are your regular companies?

 

[sman]

what are your regular companies?

They were listed in the original post that started this thread.