United of Omaha to Raise Rates 40%?

Crabcake Johnny

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Anyone who believes that ObamaCrap doesn't apply in some ways to Med Supps is mistaken. Give a socialist an inch and they'll want a foot.

In this case, an arm and a leg.

Rick
 
Interesting, I recently received a rate increase notice for several states to take effect in October and the largest was in Arizona and it was 15% for Plan F.

Not seeing 40%. I guess we'll get to wait until next year for that. For what it's worth, it wouldn't surprise me if they had a large increase on Plan N seeing that it's guarantee issue in many states.

Once the politicians start getting their hands in the pot to "help", rates should increase much more dramatically. I don't know why these idiots can't see the cause and effect of their actions.

"Reid, Baucus and Kerry were responding to reports that United of Omaha Insurance Company, a unit of Mutual of Omaha, Omaha, Neb., will increase Medigap premiums by about 40% in 2011.

Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, Washington, defended Medigap issuers, saying 2011 rate increases are driven “by the soaring cost of underlying medical care.”


Dems Call for Action on Medigap - Regulatory,Legislative and Tax Issues - Life and Health Insurance News
 
"Reid, Baucus and Kerry were responding to reports that United of Omaha Insurance Company, a unit of Mutual of Omaha, Omaha, Neb., will increase Medigap premiums by about 40% in 2011.

I find it quite interesting that they don't identify the source of the "reports" they are "responding to".
 
So what's your take? What effects do you foresee or expect?

My best guess is that ultimately Medicare will have a max on the out of pocket. Certainly this will happen if and when we have a single payer for medical coverage.

If there is a limit of $4K on Medicare OOP, there will be no need for someone to pay $2K or more for a supplement.

I don't have a crystal ball but fair is fair. Why should those under 65 have a OOP limit, but not older people?

Frank will be here shortly to post that I'm wrong and there is no evidence, etc. But this is my belief.

The other issue is with so many MA clients losing plans, the ones that will gravitate to med supps on a GI basis will be sicker than the "average." This will put pressure on rates also.

Just my 3 cents.

Rick
 
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