Buy Attained Age Medigap

[somarco]

Move to issue age state.

Talking with a lady that will be moving to GA late 2017 or early 2018. Rates in her current issue age state slightly lower than GA rates for the same plan.

Attained age rate is $98, GA issue age is $105.

If she buys in attained age state then moves to GA I assume that policy will follow her and they will eventually change her rate to reflect the new cost area. But will they also change her policy from attained age to issue age?

 

[Todd King]

Move to issue age state.

Talking with a lady that will be moving to GA late 2017 or early 2018. Rates in her current issue age state slightly lower than GA rates for the same plan.

Attained age rate is $98, GA issue age is $105.

If she buys in attained age state then moves to GA I assume that policy will follow her and they will eventually change her rate to reflect the new cost area. But will they also change her policy from attained age to issue age?

I used to think that the company would change the client to the appropriate plan and price for the new state, but it turns out that companies seem to do what they want, usually to their own advantage. I think it is best to ask the particular company what they will do.

 

[somarco]

Thanks. Kind of figured as much (they will do what they want). I would think they would (in this case) bump her up to the higher premium entry age plan, but don't know.

Lady is 67, covered by a group plan. Trying to decide if she will buy a plan in SC and then move to GA or just wait until she gets here and I can be her agent.

 

[JimmyUt]

Thanks. Kind of figured as much (they will do what they want). I would think they would (in this case) bump her up to the higher premium entry age plan, but don't know.

Lady is 67, covered by a group plan. Trying to decide if she will buy a plan in SC and then move to GA or just wait until she gets here and I can be her agent.

I have clients that have moved out of Utah to a state with higher rates, and nothing changed. You never know what to expect

 

[somarco]

Thanks, Jimmy. I have a feeling there are no definitive answers here but can't blame a guy for trying.

 

[GreenSky]

I have a client that moved from CA to TX. IAC is her carrier and TX rates would be $40 lower. They won't change her to the lower rate without underwriting (she won't pass).

Why rate by zip code if the resident zip code is meaningless.

I'm still debating if it is worth my time to send a complaint to the TX DOI. I think this kind of thing should be illegal. Rates are filed by zip code. Honor them.

Rick

 

[XpressInsurance]

I had a H&W client move 2 months ago from OH to MO, they were paying Aetna HL $113 & $103 for G, they got bumped up $127 & $115, lowest rate for G would be $149 & $143 in MO. The only Aetna company American Continental rate for him $162 & $146 for her are MO rates. I had expected & advised them they might get a large increase because of the difference in MO & OH rates but the OH policy didn't increase as I thought it would.

 

[Todd King]

I have a client that moved from CA to TX. IAC is her carrier and TX rates would be $40 lower. They won't change her to the lower rate without underwriting (she won't pass).

Why rate by zip code if the resident zip code is meaningless.

I'm still debating if it is worth my time to send a complaint to the TX DOI. I think this kind of thing should be illegal. Rates are filed by zip code. Honor them.

Rick

I really don't understand how they can get away with it since they have to file the rates in each state and they have to be approved.

 

[ecotainer]

I really don't understand how they can get away with it since they have to file the rates in each state and they have to be approved.

You should also check the policy language. It might say your rates are based on the state/zip code of issue. When you buy a policy in a state, that policy will be specific to that state so you can't just say that what they file in one state will apply to others. It's not like if your policyholder moves to Massachusetts where the company doesn't write their policy lapses or goes to $0 premium. States don't require you to file zip ratings for other states.

 

[GreenSky]

You should also check the policy language. It might say your rates are based on the state/zip code of issue. When you buy a policy in a state, that policy will be specific to that state so you can't just say that what they file in one state will apply to others. It's not like if your policyholder moves to Massachusetts where the company doesn't write their policy lapses or goes to $0 premium. States don't require you to file zip ratings for other states.

You miss the point. IAC does rate by zips both in CA and TX. So my client is indeed getting screwed.

Rick