Where have all the good insurance companies gone

[samantha129]

I got appointed with Mutual of Omaha and wrote a decent amount of business for MOO under their United World life company brand. I then get notice that their closing the book of business for United World and opening a brand new book called what else United of Omaha. Obviously, this is old news but I'm a newbie and just found this site.

In Ohio, you have to go through UW to make a move to another Med supp carrier. I was told by my GA that this is becoming more and more common place. In that, companies are opening and closing books of business. I wonder if ODI even has a clue that they're doing this.

The companies open a book of business for a few years with low competitive rates and load the book up and then close the door when it starts to experience higher than normal rate increases.

The bad part is, the folks on UW that now have health problems won't be able to make a move and they'll be stuck. Now, with no new blood being added year in and year out the book will experience rapid premium increases.

I read a post earlier where in California they can make a move to another Med supp carrier once a year. I think this should be true in all the States and would keep the above from happening!

If this is common place now, if you don't already sell MA plans you better get on the ball because I've already had more than a few clients leave Med Supps that I sold them and they now want MA because of the higher than normal rate increases on their Med Supp.
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[GreenSky]

I agree with the ability to move to any other carrier in principle. (Since I'm in California it's easy for me to say this). However, would that not limit the number of carriers willing to write the business?

Actually, I think that the ability to change carriers annually should be extended to IFP as well. Plans could be designated as A, B, C etc. Not standardized, but categorized as far a benefits. People should be able to go to a similarly categorized plan or a lesser plan without proof of insurability. This should help people who are insured currently to move from a closed plan to an open plan and continue to afford their coverage.
Rick

 

[DenverINS]

JustinTime guess that means you get a fatter paycheck?

 

[samantha129]

I'd love it if Ohio had an anniversary where by the insured can make a move to a like plan once a year.

The rate for United World Life / Mutual of Omaha plan C varies by zip here in Ohio, but I'll use 430-435. The rate for a 65 year old Female was $104.21 on or before 3/31/08 and that's the lowest of all the zips in Ohio. Since the book is now closed, the rate has increased to $122.07 or 18% and is effective 4/1/08. It'll be interesting to see what the rate will climbs to next year.

Interestingly enough, the rate for United of Omaha which is Mutual of Omaha's newest book of business in Ohio plan C in the same zip 430-435 for a 65 year old female on plan C is $94.94.

I'm going to contact OHSHIIP and ODI to see what they can do. Sure, I like making money but not at the expense of my clients getting the shaft!