Problem with a Carrier

[ksigmtsu]

I have 3 pending applications with a medicare supplement carrier in Tennessee. The day the applications were taken I printed a rate sheet from their website, did the applications, signed, dated, mailed to the carrier (as per their requirement).

At first they tried to deny that U65 was GI right now, I confirmed with DOI that there was a 6 month open enrollment window, got documentation, called them back. Now they're saying they changed the rate from $162 per month to over $300 per month and they will not honor the rates they had posted.

The claim they're making is that the state DOI required them to put their U65 rates at 366% of the over 65 rate, and they had no choice, and that they had posted unapproved rates on their own website because if they didn't put a rate on the sheet that the DOI would make them wait another year before they could offer U65 policies.

Any suggestions about what the hell I should do here? I'm trying to get the carrier to commit to offering the rates they quoted, so I can go back to the clients and explain they can have the rate for 1 year but it will increase to the new rate or go with another carrier, but I feel like the carrier should have to honor these rates since it was them that posted and offered the rates to the client.

They can't just turn around and say they're not going to honor rates that they posed after the application is signed and turned in can they?

 

[Fisher]

Have you checked with the state DOI and see what they have to say about this?

 

[G.Gordon]

The rate they will have to honor will be the one filed with the DOI. If they had something on the website it is not gospel unless it was attached to the outline of coverage.

You don't have a leg to stand on. Serve the client.

 

[Fisher]

I'm a bit curious who the carrier is...

 

[somarco]

Does the color blue mean anything here?

 

[VolAgent]

They can't just turn around and say they're not going to honor rates that they posed after the application is signed and turned in can they?

You better believe they can. The underwriter determines the final premium based upon underwriting class and the rates filed with the DOI. Remember your L&H class, you have limited binding authority, and I don't recall any Med Supps in TN that have temporary insurance. But be glad you can't bind, you'd be making up the difference between what you collected and what is owed.

 

[ksigmtsu]

The rates were in the outline and posted as if they had been approved. After all 3 cases were turned in they initially loaded the rates from the outline, then they changed the premium on all 3 cases around the same time they seemed to realize that the cases were open enrollment gi.

I'm going to call the doi to clarify the mess. The huge foulup here is they gave a rate that caused a product to be chosen that might not have been, then raised the rate nearly double, and because of the timing the people affected cannot elect a ma plan now because aep ended.

 

[Fisher]

You better believe they can. The underwriter determines the final premium based upon underwriting class...

On a med supp?

 

[VolAgent]

On a med supp?

That is what underwriters do, they determine what premium applies based upon the company's underwriting guide and filed rates. You just don't notice it, it appears that no one submits Med Supps that might be rated.

 

[Fisher]

On a GI med supp as the OP stated?