The Future of Medicare Advantage?

2112Greg

Guru
100+ Post Club
As I'm putting together my Plan B, I'm shifting more and more efforts to the senior market. And as this push begins, I'm getting feedback from seniors about MA plans and what is in store for them under the new legislation. So I am preparing myself with information and help so that I can provide good information to seniors either with those plans or who would/might consider them.

How do the changes fit in the overall scenario of supplements moving forward? What changes have you made in the information you provide prospective supplement clients?

Your input is appreciated!
 
As I'm putting together my Plan B, I'm shifting more and more efforts to the senior market. And as this push begins, I'm getting feedback from seniors about MA plans and what is in store for them under the new legislation. So I am preparing myself with information and help so that I can provide good information to seniors either with those plans or who would/might consider them.

How do the changes fit in the overall scenario of supplements moving forward? What changes have you made in the information you provide prospective supplement clients?

Your input is appreciated!

I would say that MA plans are an endangered animal. The black jesus is going to flatten or lower capitation payments in the years to come. CMS is holding capitation for 2011 to 2010 levels. We already saw several MA's disappear for the 2010 season. More will disappear for 2011. If you sell someone a MA, tell them to fasten their seat belt and prepare for a rocky ride. It's a good time to be selling Med supp's.
 
Right, actually, I've never sold a single MA plan. I've switched over lots of people (I used to work with a home health company who would constantly run across MA clients whose plans wouldn't pay them, so they had me switch them back). So I'm not someone who is in favor of MA plans...!

I'm trying to get at what the changes are, how they will effect current MA plan holders and specifics about how to use that information to move them away from those plans and into a real supp.

Sorry my post wasn't clear before... :)
 
Gregg,
How did you get working with a Home health care company. I have thought about thias for a while.
Thanks,

Right, actually, I've never sold a single MA plan. I've switched over lots of people (I used to work with a home health company who would constantly run across MA clients whose plans wouldn't pay them, so they had me switch them back). So I'm not someone who is in favor of MA plans...!

I'm trying to get at what the changes are, how they will effect current MA plan holders and specifics about how to use that information to move them away from those plans and into a real supp.

Sorry my post wasn't clear before... :)
 
I inform people who choose a MA plan that every year there are changes to these plans and at the end of this year, there may be major changes. I then tell them I will be calling them in November to go over the changes and what it means to them.
 
I would say that MA plans are an endangered animal. The black jesus is going to flatten or lower capitation payments in the years to come. CMS is holding capitation for 2011 to 2010 levels. We already saw several MA's disappear for the 2010 season. More will disappear for 2011. If you sell someone a MA, tell them to fasten their seat belt and prepare for a rocky ride. It's a good time to be selling Med supp's.

Indeed, what you say is true. AND, is it not also true/correct that as Medicare cuts back on its payments to providers--all of them--that medicare supplement coverage is affected every bit as much?

In other words, if a med supp policy is required, by the contract terms, to pay for unpaid Medicare-covered charges, the insurance company will not do so to the point of its own bankruptcy. That is, if their portion of the charge is contractually increased, they will simply raise premiums (their source of income) to compensate for the increased amounts they must cover.

If the above is correct, then there is no "safe haven", including medicare supplement policies.

Or, does my thinking need some help?

Jim Boyd
 
In other words, if a med supp policy is required, by the contract terms, to pay for unpaid Medicare-covered charges, the insurance company will not do so to the point of its own bankruptcy. That is, if their portion of the charge is contractually increased, they will simply raise premiums (their source of income) to compensate for the increased amounts they must cover.

Please explain "unpaid Medicare-covered charges" ???
 
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