WOW New Era 6-8% Rate Increase

[Justin Bilyj]

I am very surprised to see New Era hike their plan F and G 8% and plan N 6%. I hope this isnt a pattern. How did plan N get such a hike??
This was for Ohio, anyone hear anything anywhere else?

 

[somarco]

I see nothing on their site. Was this via email or USPS? No notification (yet) for GA.

 

[Mink]

I would be ecstatic if most of my companies only got 6%

 

[Bevo]

It was by email, and Plan G was only 6%...same as they always are which is great. Plan N was 8% which did surprise me. Plan F wasn't listed at all on my letter for Ohio which is the only state I got so far.

 

[agentjhc]

Effective date ? ......................

 

[somarco]

New Era usually changes rates in Jan in GA.

 

[policy doctor]

Sooner or later little companies grow into bigger ones and so does their claim experience.

Just hope they don't increase every 6 months.

I noticed that after every increase there was a group of seniors who shifted sail towards self-insuring or mapd.

 

[Bevo]

effective date ? ......................

11/15........................

 

[Justin Bilyj]

Correction, A, C, N is 8% G is 6%. I am still surprised to see N go up, but to be fair OH is a high MA penetration state so more seniors are used to the copay model and N has higher claims experience.

C should be the plan to have in OH since theres no excess charges allowed here.

 

[somarco]

Sooner or later little companies grow into bigger ones and so does their claim experience.

Just hope they don't increase every 6 months.

I have been monitoring them for some time, viewing their operation in the same way as when I was in the reinsurance market. Granted, I don't have access to loss ratio's like when I worked with market makers, but I have enough feel for their operation to say they really know how to keep things tight.

The Medigap business is as predictable as night and day as long as you don't do something incredibly stupid like GI for everyone on plan N. Or introduce low, sucker rates, raise the rates by double digits for consecutive years, then introduce a new carrier and freeze the old block.

They could also pay full commission on GI business, charge little to nothing for tobacco use and take on people with heart conditions that every other carrier walks away from.

But they haven't.

New Era has 3 companies and could very well play the shell game if they wanted but so far they haven't.

From a financial perspective they are doing just about everything right and their mistakes have been minimal.

One of the best things they have done is avoid getting mixed up with AIM as their marketing underwriter. I have lost track of the number of carriers that have been burned by AIM. Their latest victim is Manhattan.

----------

C should be the plan to have in OH since theres no excess charges allowed here.

If only it was that simple.

In GA C is within a few dollars of F, and is 60% higher than N.