United of Omaha to Raise Rates 40%?

..what I think is happening to all companies is that when the MA contracts start dropping and are being picked up by the major MED Supp carriers you will undoubetedly see an increase in claims but also to balance out an increase is revenue. Mutual along with Gerber anticipates this and will slowly adjust rates. You will not see 40% increase at one time.

That is exactly what they are doing.
 
That is exactly what they are doing.

are we talking about an inforce business increase of 40%? I am pretty sure that 15% percent increase was only on new business. Lets be honest here, if united of omaha took a 40% new buiness increase they would just toss the UOO block and start fresh with a new company like they did with UOW.
 
Full Text of Letter to Secretary Sebelius:

October 6, 2010

The Honorable Kathleen Sebelius
Secretary
U.S. Department of Health Human Services
200 Independence Ave. SW
Washington, D.C. 20201

Dear Secretary Sebelius:

We share your commitment to delivering high quality health care coverage to our nation’s Medicare beneficiaries at the best possible price. This commitment is exemplified by the announcement that beneficiaries enrolled in Medicare Advantage plans will see their premiums decrease by 45 cents a month, on average, next year.

While Medicare Advantage premiums are declining, we are hearing disturbing stories from beneficiaries across the country about excessive premium increases for Medigap supplemental insurance policies. For example, some beneficiaries enrolled in the United of Omaha Life Insurance Company will see their Medigap premiums increase by approximately 40 percent between 2010 and 2011. An increase of this magnitude raises serious concerns about premium-setting practices and rate review procedures in place for Medigap policies.

As you know, the Affordable Care Act establishes an annual review process for premium increase for health insurance coverage and provides $250 million in funding to States so they can engage in meaningful rate review. While this rate review does not apply to Medigap plans, we request that you work with Governors and State Insurance Commissioners to help them gain this authority where it does not exist today.

In addition, you can help State officials assess the accuracy of Medigap rate increases. We request that you conduct a study of Medigap trends and costs to provide a benchmark against which proposed rates can be measured.

We look forward to working with you to ensure that Medigap enrollees are protected from unnecessary rate hikes by insurance companies and that State regulators have the necessary tools to make this happen. Seniors, like all Americans, deserve to get the most health care for their premium dollars.

Thank you for your consideration of this request.:)

Sincerely,

Harry
Max
John
 
are we talking about an inforce business increase of 40%? I am pretty sure that 15% percent increase was only on new business. Lets be honest here, if united of omaha took a 40% new buiness increase they would just toss the UOO block and start fresh with a new company like they did with UOW.

I guess I wasn't clear, my bad. No, there is no 40% increase, I didn't mean to seem as though I was agreeing with that part of it.

In Florida the increase applicable on new business only is 15%. For underage (age up to 64) the increase is 200% on new business, 35% on existing business.

If any of the MOO companies, Mutual of Omaha, United of Omaha and United Word, took a 40% I think they would get killed by other companies and their percent of the market would plummet dramatically.

On existing business in FL it is only 8%. It is Mutual of Omaha that is currently in FL so yes, at any time they could move United of Omaha to Florida.
 
Yes, it's true. I am nuts.

But, I just posted their letter. I did not write it. I did not comment on it.

The letter seems pretty straight forward to me. Not very complex.
 
I don't get it, Brooks.

It was a letter written by Harry Reid, Max Baucus and John Kerry. The idiocy of it is that they have no authority to do this. It is nothing but an attempt at a power grab. Furthermore, their reference to this not being under the purview of HHS and the Affordable Care Act is because Medicare Supplements aren't primary coverage. Medicare is the primary coverage for seniors. They simply supplement Medicare (big duh, huh?). The idiots on the left want to control as much as they can.
 
if anyone wondered who's running the asylum, there should be no doubt now. That is without question the stupidest letter I have ever read.

The fact that those loons are still in a position of goverment authority is what alarms me the most, frankly.
 
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