Aetna Continental Life Vs New Aetna Med Supp

wehotex

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Houston, Tex
Aetna offers a "new" Med Supp product in Texas, which is replacing the old Continental Life. We can still write CONT LIFE until April 7. When I requested CL rate, it was only 8 cents/mo cheaper than new Aetna for my T65 female. Am I doing her any disservice by not writing her on "new Aetna"? My thinking is that it's a newly created risk pool that hasn't been "miscalculated" like Cont Life. Just a thought.
 
When AHL came to GA about 3 or 4 years ago existing CLI policyholders got a 9% across the board rate increase right before AHL was available. The difference in the "current" CLI rate and AHL was that AHL was 25% less than the same plan from CLI.
 
Aetna offers a "new" Med Supp product in Texas, which is replacing the old Continental Life. We can still write CONT LIFE until April 7. When I requested CL rate, it was only 8 cents/mo cheaper than new Aetna for my T65 female. Am I doing her any disservice by not writing her on "new Aetna"? My thinking is that it's a newly created risk pool that hasn't been "miscalculated" like Cont Life. Just a thought.

You can only write CL until April 7th then it's a closed block, never a good move to put someone in that.
 
Aetna offers a "new" Med Supp product in Texas, which is replacing the old Continental Life. We can still write CONT LIFE until April 7. When I requested CL rate, it was only 8 cents/mo cheaper than new Aetna for my T65 female. Am I doing her any disservice by not writing her on "new Aetna"? My thinking is that it's a newly created risk pool that hasn't been "miscalculated" like Cont Life. Just a thought.

One thing is almost for certain. The rates on the closed book will increase at a higher rate than the newer open book.
 
Couldn't you make the argument that the closed block of business has some experience tied into the rate and depending on the carrier many of the policies will be in the 6th year so the 25% commission lug will no longer be in the equation so rates might actually be stable longer on the closed block?
 
Couldn't you make the argument that the closed block of business has some experience tied into the rate and depending on the carrier many of the policies will be in the 6th year so the 25% commission lug will no longer be in the equation so rates might actually be stable longer on the closed block?

Closed health insurance blocks eventually go into a death spiral. Group is getting older and sicker. No new entrants that are healthy
 
Couldn't you make the argument that the closed block of business has some experience tied into the rate and depending on the carrier many of the policies will be in the 6th year so the 25% commission lug will no longer be in the equation so rates might actually be stable longer on the closed block?

You could make the argument, but history shows otherwise.
 
You could make the argument, but history shows otherwise.

So does that mean that sales agents should move all of the business (that can be moved) out of this closed block into an open block? Would the new Aetna allow its Aetna Continental Life business to voluntarily migrate into the new Aetna block? Without extra costs or underwriting issues? This is the first time that I've dealt with this. Not sure how to proceed.

ACL has always been so good with competitive rates, quick processing and payment and a top notch Agent Services Dept. I've really liked them so far.
 
So does that mean that sales agents should move all of the business (that can be moved) out of this closed block into an open block? Would the new Aetna allow its Aetna Continental Life business to voluntarily migrate into the new Aetna block? Without extra costs or underwriting issues? This is the first time that I've dealt with this. Not sure how to proceed.

ACL has always been so good with competitive rates, quick processing and payment and a top notch Agent Services Dept. I've really liked them so far.


If you can save them money move them before another agent does...it's the nature of the business.

No, they'll have to be underwritten to move them to Aetna.
 
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