Anyone have tips on how to overcome AARP when it comes to a med supp prospect?
I understand the fact that AARP doesn't have agents to help assist a policyholder, etc and that all they can do is call in and navigate the automation and call center type service, but is there anything else?
Anyone have tips on how to overcome AARP when it comes to a med supp prospect?
I understand the fact that AARP doesn't have agents to help assist a policyholder, etc and that all they can do is call in and navigate the automation and call center type service, but is there anything else?
They are way overpriced (often to the tune of $70-100 per month depending on the plan and age) here and probably everywhere else. One reason is that they will accept people into that supp with health conditions that no one else will touch.
If your price is cheaper and you would be their agent.....what more do you need? Most people are with AARP because thats the only company they have heard of. At least that has been my experiences.
If your price is cheaper and you would be their agent.....what more do you need? Most people are with AARP because thats the only company they have heard of. At least that has been my experiences.
It is mine as well. IMO their plan is only for people with $$ who cannot qualify for someone elses. Now I have run across people who have had theirs for years who are now in their later 70's and 80's and aren't paying too much considering. But those who buy now usually are paying more at 65 than those folks.
If you are encountering resistance, it is probably b/c they haven't heard of your company and/or they do not realize that Medicare Supplements are standardized and that Company X's plan F is the same as AARP/United's.
Around here, people in their 90's are paying about the same as a 70 yr old. I think they gave huge discounts back then. I ran into a 66 yr old 2 weeks ago with AARP and I could not get him to switch for $30 a month. Just remember you can't get everyone no matter how much more you have to offer.
Around here, people in their 90's are paying about the same as a 70 yr old. I think they gave huge discounts back then. I ran into a 66 yr old 2 weeks ago with AARP and I could not get him to switch for $30 a month. Just remember you can't get everyone no matter how much more you have to offer.
Some people are going to go with the big name no matter what, whether it's BC/BS or AARP. I've found if you can get to them at age 65 or when they are looking to change they are more amenable but few are going to want to switch for $8 or $10 per month or in some cases as you mention above, even if they can save more. A lot of people are very resistant to change unless their current plan is really stretching their budget, even if it makes no sense at all from our point of view. I haven't been in the supp. business long, but that's why you want to follow up later on when the rate increase hits.
Well now....AARP is an senior association....once you hit 50 years old and up...you qualify for the rest of your life! Ain't that sweet?
United Healthcare is the company, who bid and won, the contract with AARP/ It's probably a 10 year deal....or so, but eventually it will be rebid again. I remember when it was Prudential before that, and Colonial Penn before that.
So the heavy rebuttal here is ....are you ready?
The heavy rebuttal here is....YOUR INSURANCE IS NOT GUARANTEED RENEWABLE. Why? because they all are on a master contract that AARP negotiated ...and once that expires....the next co picks it up.....unless everything got disbanded ( not likely, but who knows?) They run it anyway they like .. So if they like calling in to a 800 # and talking to an indifferent stranger, and having insurance that is based on a master contract...that's their choice. you on the other had, are licensed with their local DOI, Your company had to be licensed to do business in your state, and they had to set up reserves for claims.
The heavy rebuttal here is....YOUR INSURANCE IS NOT GUARANTEED RENEWABLE. Why? because they all are on a master contract that AARP negotiated ...and once that expires....the next co picks it up.....unless everything got disbanded ( not likely, but who knows?) They run it anyway they like ..
That's not totally true that is it not guaranteed renewable. It is "group" insurance and AARP is at liberty to do anything they want. Several years ago there was talk that AARP was going to be an HMO. It never did happen.
Regardless of which company is the carrier for AARP they have to take all existing policy holders. However, the premiums could go sky high, they could become an HMO or anything else that people might consider undesirable. But the current members are guaranteed to be able to continue coverage. It just might be a company or plan that sucks. At least as I understand it.
But you are correct, there is no guarantee that they will be able to continue when the same company year after year.
I tell people that AARP is group insurance. They don't get a policy, just a pamphlet explaining the benefits. AARP insures a lot of sick people who have a lot of claims. Claims translate into large premium increases. They don't own the policy, AARP owns it and they can do whatever they want. There is no agent to give personal service if they have a problem or question. Only a toll-free number with a stranger who has a list of the 20 most frequently asked questions.
With a Med Supp they own the policy. The only way they will ever lose their policy is if they elect to stop paying the premiums. Their policy can never be cancelled, altered or changed and will follow them where ever they move. They will always pay the same premium that the company charges for people in the state they took the policy. I will always be their agent no matter where they live and I'm only a toll-free call away.
AARP is one of the reasons that I have never had great success with people turning 65. Now that more and more of them are getting on the internet it is getting worse.
The good news is that the vast majority of them take Plan F. When they reach 67 you have a good shot at getting them to change by selling them much better coverage at a lower price, Plan D. Also, Plan D usually, with a lot of companies, get a much lower increase when the company increases premiums.
Last time Continental Life had an increase Plan F went up 25% and Plan D went up 9%.
When I have an appointment with someone who has a Plan F I can almost count on walking out the door with a signed app and check regardless of the company. At least in Missouri.
Ages 67 and above is where I really "hurt AARP".
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That's not totally true that is it not guaranteed renewable. It is "group" insurance and AARP is at liberty to do anything they want. Several years ago there was talk that AARP was going to be an HMO. It never did happen.
Regardless of which company is the carrier for AARP they have to take all existing policy holders. However, the premiums could go sky high, they could become an HMO or anything else that people might consider undesirable. But the current members are guaranteed to be able to continue coverage. It just might be a company or plan that sucks. At least as I understand it.
But you are correct, there is no guarantee that they will be able to continue when the same company year after year.
I tell people that AARP is group insurance. They don't get a policy, just a pamphlet explaining the benefits. AARP insures a lot of sick people who have a lot of claims. Claims translate into large premium increases. They don't own the policy, AARP owns it and they can do whatever they want. There is no agent to give personal service if they have a problem or question. Only a toll-free number with a stranger who has a list of the 20 most frequently asked questions.
With a Med Supp they own the policy. The only way they will ever lose their policy is if they elect to stop paying the premiums. Their policy can never be cancelled, altered or changed and will follow them where ever they move. They will always pay the same premium that the company charges for people in the state they took the policy. I will always be their agent no matter where they live and I'm only a toll-free call away.
AARP is one of the reasons that I have never had great success with people turning 65. Now that more and more of them are getting on the internet it is getting worse.
The good news is that the vast majority of them take Plan F. When they reach 67 you have a good shot at getting them to change by selling them much better coverage at a lower price, Plan D. Also, Plan D usually, with a lot of companies, get a much lower increase when the company increases premiums.
Last time Continental Life had an increase Plan F went up 25% and Plan D went up 9%.
When I have an appointment with someone who has a Plan F I can almost count on walking out the door with a signed app and check regardless of the company. At least in Missouri.
Ages 67 and above is where I really "hurt AARP".
So since AARP is "group" in a way it is not really a Supp? That does seem to explain why they basically take all comers. It is GR but the plan could change?
I think when United World went up this year in LA it was 10% across the board, but they also did not introduce Plan D until after the increase. I think they only had A,B,F and G before that, and maybe C.
BC/BS seems to write a ton of turning 65's. But a lot of them are select plans. But maybe AARP writes a ton and I have never gotten in the house or saw them in 06 for Humana since AARP is who they went with for the PDP too.
[quote=Cenla Agent;25675]So since AARP is "group" in a way it is not really a Supp? [quote]
The policies they sell are Med Supp policies lettered A - J (they may not offer all of them), just like all the other companies.
The only difference is that they don't have any underwriting on policies A - F. They have to take anyone who applies, as I understand it. Very much the same as a group policy with a company has to take new employees regardless of their health.
The only difference is that they don't have any underwriting on policies A - F. They have to take anyone who applies, as I understand it. Very much the same as a group policy with a company has to take new employees regardless of their
Frank , it's been a few years since I saw AARP application, but they did ask medical questions. So i'm assuming this is still true. And it would be interesting to know for sure that they take our uninsurables....just load them up.
And as for that guarantee....it is contingent upon that group certificate. I Guarantee to Post Daily (unless extenuating circumstances prohibit, law intervenance, Acts of God, and the unforeseen)
The only difference is that they don't have any underwriting on policies A - F. They have to take anyone who applies, as I understand it. Very much the same as a group policy with a company has to take new employees regardless of their
Frank , it's been a few years since I saw AARP application, but they did ask medical questions. So i'm assuming this is still true. And it would be interesting to know for sure that they take our uninsurables....just load them up.
And as for that guarantee....it is contingent upon that group certificate. I Guarantee to Post Daily (unless extenuating circumstances prohibit, law intervenance, Acts of God, and the unforeseen)
Yawn...i need more coffee.
I am by no means an expert on group insurance, but I have seen group plans that ask health questions of enrollees, evidently to help with the group underwriting.
The only difference is that they don't have any underwriting on policies A - F. They have to take anyone who applies, as I understand it. Very much the same as a group policy with a company has to take new employees regardless of their
Frank , it's been a few years since I saw AARP application, but they did ask medical questions. So i'm assuming this is still true. And it would be interesting to know for sure that they take our uninsurables....just load them up.
And as for that guarantee....it is contingent upon that group certificate. I Guarantee to Post Daily (unless extenuating circumstances prohibit, law intervenance, Acts of God, and the unforeseen)
Yawn...i need more coffee.
It's been a while since I have seen an AARP also so I just called them. The only question they ask is if the applicant is on kidney dialysis. It doesn't matter what else is wrong with the applicant they will issue the policy.
Since AARP is selling a true Medicare Supplement policy, federal law stipulates that all Medicare Supplement policies are guaranteed renewable. I don't see how AARP can get around that even though they are group insurance.
If AARP were to cancel that group certificate, all those insured by AARP who have a Med Supp policy would be entitled to go to another company and purchase a Med Supp policy under Guaranteed Issue.
There is no way a person can lose their Med Supp coverage once it is issued unless they stop paying the premiums. They may have to change companies but they can still continue with a Med Supp policy.
I am by no means an expert on group insurance, but I have seen group plans that ask health questions of enrollees, evidently to help with the group underwriting.
I'm not either so I guess I should have qualified that statement about group insurance. Every group I have belonged to had to take everyone. I guess I have just been "lucky".
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