United of Omaha Raising Med Supp Rates

insurance0707

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Michigan
Well that didn't take long. United of Omaha has only been in Michigan about one year and I just got a notice that the rates are going up. I don't know about the other states but it looks like about a 15% rate increase.

I called the home office and they said due to claims was the main reason
 
I called the home office and they said due to claims was the main reason

You really didn't expect them to tell you "because they can" did you? :D

Look upon it as the really good news that it is. Print a list of everyone you have talked to who told you they had MOO when you initially contacted them and now call them back with an offer to save them money.

I look forward to companies having premium increases. I get the majority of my clients by contacting my prospects when the company they are with has a premium increase. Premium increases make money for me. Hope they never stop.

The prospect who made disparaging remarks about my heritage the first time I called may be willing to send a cab for me now.
 
Good Advise Frank. I was just suprised that they were having it, they've only been in Mi since May
It is pretty standard to have an increase once per year with most companies. They are already 10-15 percent below the market on pricing. They are taking a 9% in SC and TX. Most of the states are going to be 9%. It sure is better than the 50% or so that Provident American dropped on customers over the last two years. United will still blow away most companies in the states we work in. Over the long haul you can not go wrong with United of Omaha.
 
The sad thing with Mutual Of Omaha - they come in with the cheapest rates, then they increase at a rapid rate. They develop a new company with low rates, people roll the business. The problem is the poor client that gets caught with bad health problems and can't change companies.

I have a 79 yr old client with renal disease who cannot qualify to make a change his Mutual of Omaha is now $335.00 per month!
 
The sad thing with Mutual Of Omaha - they come in with the cheapest rates, then they increase at a rapid rate. They develop a new company with low rates, people roll the business.

Hmmm. I got a call last Thursday from Jordon Scott at Senior Market Sales telling me about a brand new block of biz that MoO has opened. It's a "J" plan which is cheaper than an "F" in Northern CA. I ran the quotes and for a T65 he was right. I didn't run them for an older age as I don't currently have a prospect in an older bracket. As I remember they are doing gender-based rating too.

Perhaps this is an example of what "dandan" posted above?

I don't write much senior biz... and when I do it's always GI (T65 or exiting group/COBRA) and most often "F" with Blue Shield of CA and most often for "Part-D" as well since their rates for both are about the same as other players and I happen to like that company better than others... one reason is because I never have a problem with them... service, claims, etc.
 
I don't write much senior biz... and when I do it's always GI (T65 or exiting group/COBRA) and most often "F" with Blue Shield of CA and most often for "Part-D" as well since their rates for both are about the same as other players and I happen to like that company better than others... one reason is because I never have a problem with them... service, claims, etc.

Yep, they have rolled out a highly competitive Plan J lower than F where I am. I have not figured it out yet. On one hand, I am also cautious of their lowballing to get market share and then raise rates. On the other hand, I am in a state which does not have the United World/Mutual of Omaha product and my understanding is that those rates are often competitve so I am wondering if the Plan J strategy by MOO is to ofter something more competitve for those who do not have the United World brand. Under my state's law, a person who already has a supp and has had no break in coverage for greater than 90 days can just switch to any carrier as they wish so I am not as concerned about client getting drawn in and then being trapped.

Don't know.
 
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Yep, they have rolled out a highly competitive Plan J lower than F where I am. I have not figured it out yet. On one hand, I am also cautious of their lowballing to get market share and then raise rates. On the other hand, I am in a state which does not have the United World/Mutual of Omaha product and my understanding is that those rates are often competitve so I am wondering if the Plan J strategy by MOO is to ofter something more competitve for those who do not have the United World brand. Under my state's law, a person who already has a supp and has had no break in coverage for greater than 90 days can just switch to any carrier as they wish so I am not as concerned about client getting drawn in and then being trapped.

Don't know.

It would be nice if all states had that option for seniors, being able to switch anytime with no health questions.
 
Yep, they have rolled out a highly competitive Plan J lower than F where I am. I have not figured it out yet. On one hand, I am also cautious of their lowballing to get market share and then raise rates. On the other hand, I am in a state which does not have the United World/Mutual of Omaha product and my understanding is that those rates are often competitve so I am wondering if the Plan J strategy by MOO is to ofter something more competitve for those who do not have the United World brand. Under my state's law, a person who already has a supp and has had no break in coverage for greater than 90 days can just switch to any carrier as they wish so I am not as concerned about client getting drawn in and then being trapped.

Don't know.

Just so you (and others) understand why they can offer the Plan J for less than the Plan F, it's all in the claims. They (and most other companies) have most of their claims in Plan F. Very few have claims against the Plan J, therefore they can offer it cheaper. It's like starting a brand new block of business. You can always start out cheap, until the claims start coming in then they adjust rates accordingly.
 
Just so you (and others) understand why they can offer the Plan J for less than the Plan F, it's all in the claims. They (and most other companies) have most of their claims in Plan F. Very few have claims against the Plan J, therefore they can offer it cheaper. It's like starting a brand new block of business. You can always start out cheap, until the claims start coming in then they adjust rates accordingly.

Why would a carrier not assume though that the claims against J would at least be the same as F? What is there about being in J that would drive the claims lower than F? I can see where in many instances J is overpriced because there are not many claims against bell and whistle add-ons but that is a different issue. I understand the point that it is as though it is a new plan but the DOI is responsible for reviewing the wisdom of the proposed rates versus probable loss ratios and I do not see how the loss from J could be less than from F. That leaves the possibility that the MOO is simply trying to take a smaller margin and make up for it in volume, or the that the DOI is incompetent. Both possibilities.
 
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