AARP GA Plan

[grod]

Discussed New Era and Manhattan with s couple today. They called back and ask if the rates went up every year. I provided them the historical data and indicates yes they do. They emailed me and said they were going with AARP because it only goes up 2.8% per year. If I am looking at their rate sheet correctly, it goes from $176 at age 65 to $191 for ages 66-69. Is that accurate? Automatically goes to the next level and throw 2.8% on top of that?

At age 65, their rate is 30% discounted from the standard rate. They lose 3% of that discount per year until age 75 when they'll be paying the full rate. So, each year they are guaranteed to see a 3% increase in their premium. Not due to a rate increase, but due to a loss of the discount. However, they don't call this a rate increase. Add to that adjustment any rate increase for the year and you have the true new rate. I don't sell in GA, so not sure if it applies the same to all states.

 

[somarco]

Thanks Grod. I have heard that before (about the discount) but since I rarely run into them, and I am not appointed with them, it's out of sight, out of mind.

They just aren't in the hunt here and their politics are 180 degrees from most of my clients.

 

[kstein]

At age 65, their rate is 30% discounted from the standard rate. They lose 3% of that discount per year until age 75 when they'll be paying the full rate. So, each year they are guaranteed to see a 3% increase in their premium. Not due to a rate increase, but due to a loss of the discount. However, they don't call this a rate increase. Add to that adjustment any rate increase for the year and you have the true new rate. I don't sell in GA, so not sure if it applies the same to all states.

See this makes no sense to me. It shows the same thing in MO but when I go back and pull a rate on a 69 year old that I wrote 4 years ago, they are paying the same rate as a new turning 65 year old for plan F. $180 in zip 63366 non smoker.

 

[grod]

See this makes no sense to me. It shows the same thing in MO but when I go back and pull a rate on a 69 year old that I wrote 4 years ago, they are paying the same rate as a new turning 65 year old for plan F. $180 in zip 63366 non smoker.

Here is what the website shows for a 69 yr old in that zip code.

Standard Rate
$197.25

Level 2 Rate
$295.87

Level 2 rates are for those 68 or older who have one or more of the medical conditions on the application.

 

[yogooglethis]

Above I provided the rate history for AARP in GA. Similar to New Era which has been very stable over the last 5+ years and tends to be in the lower end of rates. I did figure out that the rate would be his starting point of what he entered at age 65. Then annual increases of the amounts noted above. I normally quote AARP along with others but didn't in this case for whatever reason.

As for FL, isn't AARP usually the lowest or one of lowest at most ages?

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Interesting CGS shows $166 for Plan F with UHC and the enrollment kit shows $176 ($174 if EFT).

yes usually however BCBC may be lower for F especially for those who are at the youngest ages of aarp age bands ie. 66 yr old, 70 year old because I believe BCBS does not use age bands just slightly higher premium for every entry age.AARP basically beets BCBS on plan N across the board in Fl

 

[kstein]

Here is what the website shows for a 69 yr old in that zip code.

Standard Rate
$197.25

Level 2 Rate
$295.87

Level 2 rates are for those 68 or older who have one or more of the medical conditions on the application.

Yes but the 65 (now 69) year old is paying what a 65 yr old is paying as of today even though he is 69. Also assuming no rate ups you would think that the reduction of discounts would make the 69 year old pay more than the 65 year old.

 

[agentjhc]

At age 65, their rate is 30% discounted from the standard rate. They lose 3% of that discount per year until age 75 when they'll be paying the full rate. So, each year they are guaranteed to see a 3% increase in their premium. Not due to a rate increase, but due to a loss of the discount. However, they don't call this a rate increase. Add to that adjustment any rate increase for the year and you have the true new rate. I don't sell in GA, so not sure if it applies the same to all states.

I know TN does it that way. GA doesn't. If you enroll at 65 it's $176. If you enroll 66-69 it's $191. TN is community rated. In GA it is Issue Age.

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I spoke with a gentleman (I think 70) (in GA) who said he and his wife had a plan F and combined were paying $330. That's the same or a little lower than a current T65 in Ga.