Internal Med Sup Plan Changes

yabadabadoo1026

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I do very little sup so don't know. This one carrier says for a client with an F to downgrade to a lesser plan to save $ requires a new application to be underwritten. That makes no sense to me since their exposure would be less. Is such the rule with all carriers????????-----I could maybe understand increasing to a better plan but why would downgrading be an issue requiring underwriting again???????----is it merely just another opportunity----sense of it notwithstanding---to refuse someone???
 
I do very little sup so don't know. This one carrier says for a client with an F to downgrade to a lesser plan to save $ requires a new application to be underwritten. That makes no sense to me since their exposure would be less. Is such the rule with all carriers????????-----I could maybe understand increasing to a better plan but why would downgrading be an issue requiring underwriting again???????----is it merely just another opportunity----sense of it notwithstanding---to refuse someone???

Somebody once told me that the each plan within a company (F,G,&N, for example) has its own pool of people insured, and each plan has it's own increases based on the claims and such from that pool. Sometimes, when you look at historical rate increases, the F goes up more than the G, and this is a factor. Again, this was the explanation given to me.

However, like the other poster stated, UHC does things different and allows changes from one plan to another without underwriting.
 
It makes sense if the company is getting (for example) $200 for a relatively healthy person on Plan F, why would they want that same person to pay $160 for Plan G? It's $40/mo they no longer get for $147 of expenses.

The only company that will allow both an upgrade or downgrade is UHC. It's their internal rule which is of course subject to change.

The good news is you get the opportunity to re-write them with another company and do a better job than the old agent who is most likely has limited skills like SAI.

Rick
 
I do very little sup so don't know. This one carrier says for a client with an F to downgrade to a lesser plan to save $ requires a new application to be underwritten. That makes no sense to me since their exposure would be less. Is such the rule with all carriers????????-----I could maybe understand increasing to a better plan but why would downgrading be an issue requiring underwriting again???????----is it merely just another opportunity----sense of it notwithstanding---to refuse someone???

Insurance companies always want the opportunity to "reassess" their risk. They don't care if the coverage level is less. As others have said UHC is the only one that allows people to move within their lettered plans & that's a company policy. I think the only reason they can do that is because of their size, their benefit of healthy people just signing up with them due to exposure through AARP and the fact that they own about 35% of the Medicare supplement market. Just my opinion . . .
 
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