I recentlly found out that they were going to do away with plans E, H, I, & J in 2010. I have a handful of clients in these plans - not normal plans I sell just rare circumstances. Anyways, does anyone know if they will be GI to move to another plan within the same company when this happens? If not I want to try to move them asap before any health issues arise & they get stuck in a locked book of business.
I recentlly found out that they were going to do away with plans E, H, I, & J in 2010. I have a handful of clients in these plans - not normal plans I sell just rare circumstances. Anyways, does anyone know if they will be GI to move to another plan within the same company when this happens? If not I want to try to move them asap before any health issues arise & they get stuck in a locked book of business.
Do you have a source that you can cite in regard to the elimination of Plan J.
Thanks.
Winter
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The source is Pacesetter, a newsletter for Continental Life, American Continental & Genworth Financial - Aug/Sep 2008 issue. Its available on their website if you are an agent for them. It was part of the Medicare Improvement for patients and Providers Act of 2008. Says it will change in June 2010.
Interesting... If J goes away, so does most of my med supps. I'm sure they would have to offer a GI if that's true... wouldn't "they"?
I don't have any current information regarding that but it seems like a mute point to me.
If Plan J is no longer offered as one of the standardized plans I would think it would be highly unlikely that everyone who has a J will have their policy canceled.
It is more logical that those policies will remain in force as long as the client pays the premium. The premiums will just probably increase rather than have them "go away".
I don't see what the big deal is all about. Doing away with E, H, I, & J is probably a good thing anyway. While they are at it they should include C as well. Plan C is a total ripoff.
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My only concern is exactly what Frank just said. I know the plans won't "go away". But, the premiums will eventually go through the roof due to no new business going into these plans. I am going to move my clients so they don't get stuck in this sitution.
The ironic part is these clients are ones that wouldn't listen to my recomendations in the first place.
I am going to move my clients so they don't get stuck in this sitution.
Be careful. We don't have all the facts yet. It is unlikely that either CMS, state regulators, or the carriers have an interest in putting people out of plans without a fallback position. It is more likely that clients will be able to transition to any plan with their current carrier that has similar or fewer benefits or the same underwriting requirements as their current plan had. We dont know yet.
If you go out and tell folks, current and new clients, that the sky is falling with Plan J and that they would do well to sign up with one of your other plans you could end out in a world of hurt with the DOI for churning and other marketing problems. A client will talk that around down at the local senior center and there will be panic in the streets and calls for clarification from the DOI which will get you more attention than you want.
I would slow it down a little and get some facts. The medicare act of 2008 or whatever proposed adopting the NAIC model which has those changes in it. I dont know what is law and what is proposed at this point. Usually the law just gives the secretary the authority to adopt and then you have to see what is actually adopted.
If anyone could post the exact language from that Pacecetter site that would be helpful.
My only concern is exactly what Frank just said. I know the plans won't "go away". But, the premiums will eventually go through the roof due to no new business going into these plans. I am going to move my clients so they don't get stuck in this sitution.
The ironic part is these clients are ones that wouldn't listen to my recomendations in the first place.
If you have clients in any of those plans it is probably a good idea to move them out of those plans anyway.
Insurance companies have been pushing Plan J for sometime because of the price. Regardless if they eliminate it or not look for some pretty big increases in Plan J in the not too distant future.
If you have clients in any of those plans it is probably a good idea to move them out of those plans anyway.
Insurance companies have been pushing Plan J for sometime because of the price. Regardless if they eliminate it or not look for some pretty big increases in Plan J in the not too distant future.
That's what I am planning on doing. For me these are clients who would not change the plan they were in. I still saved them money by switching carriers, just not into the plans I recommended. I usually put everyone in D or G.
"Congress overrode the President's veto to pass the Medicare Improvements for Patients and Providers Act of 2008 into law on July 15, 2008. The main focus of this bill was to eliminate the plannes 10.6% decrease in payments to doctors, but the act also contained a number of changes for Medigap and Medicare Advantage (MA) Plans.
Starting in June 2010, there will be a number of changes to Medigap policies as recommended by the National Association of Insurance Commissioners (NAIC):
- All plans must include hospice care
- Plans E, H, I, and J will no longer be available.
- Two new plans (M and N) will be implemented with higher cost-sharing and lower premiums"
Pacesetter, Page 6, Aug/Sept 2008
It then goes onto talk about some of the changes to MA plans.
"Congress overrode the President's veto to pass the Medicare Improvements for Patients and Providers Act of 2008 into law on July 15, 2008. The main focus of this bill was to eliminate the plannes 10.6% decrease in payments to doctors, but the act also contained a number of changes for Medigap and Medicare Advantage (MA) Plans.
Starting in June 2010, there will be a number of changes to Medigap policies as recommended by the National Association of Insurance Commissioners (NAIC):
- All plans must include hospice care
- Plans E, H, I, and J will no longer be available.
- Two new plans (M and N) will be implemented with higher cost-sharing and lower premiums"
Pacesetter, Page 6, Aug/Sept 2008
It then goes onto talk about some of the changes to MA plans.
Med Supp Question -
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