ACE rate increase almost 30%%

[DonP]

There will probably be 2 million termed mapd plans this aep . You fig 10% of those will use the Gi sep to a med sup. The sickiest of the sick to get a free pass to plan g or f and 100% of bills paid . The termed plans are another big claims headwind facing med sups we didn't see in previous yrs . Throw in the birthday rule growing and growing . It appears 10-15% increases could be the norm for several yrs min

 

[Packerland]

There will probably be 2 million termed mapd plans this aep . You fig 10% of those will use the Gi sep to a med sup. The sickiest of the sick to get a free pass to plan g or f and 100% of bills paid . The termed plans are another big claims headwind facing med sups we didn't see in previous yrs . Throw in the birthday rule growing and growing . It appears 10-15% increases could be the norm for several yrs min

I completely agree. With 2 million MAPD plans likely termed this AEP, even if just 10% use the GI SEP to move to a Med Supp, that's a massive influx of high-risk members getting into Plan G or F with no underwriting. It's a major claims headwind we haven't seen in past years.

Combine that with the growing impact of birthday rules, and it's easy to see why 10–15% premium increases could become the norm for several years. The risk pool is changing fast, and carriers will have to adjust.

 

[Truce]

I completely agree. With 2 million MAPD plans likely termed this AEP, even if just 10% use the GI SEP to move to a Med Supp, that's a massive influx of high-risk members getting into Plan G or F with no underwriting. It's a major claims headwind we haven't seen in past years.

Combine that with the growing impact of birthday rules, and it's easy to see why 10–15% premium increases could become the norm for several years. The risk pool is changing fast, and carriers will have to adjust.

And that is why they need a separate risk pool for GI Med Supp due to MAPD plan term. Call it Med Supp Plan T. Call it whatever you want. Don't pay any compensation on it. But why should they be allowed to enter the standard risk pool when they skipped out on paying years of premiums like the T65 people did? Coming to the party late, and sick, is not fair to the other guests.

 

[Millwood]

The companies want those premiums high . ACE for example locked your commision in on maybe a $80 a month now it's $160 mo still paying on $80.
Those old blocks of business $400-600mo no commissions paid or very little.
No they want those rates high. They'd rather have a block of business with those high rates and no commissions than a block of new business with everyone paying $80 a month and tons of new business.

 

[Packerland]

And that is why they need a separate risk pool for GI Med Supp due to MAPD plan term. Call it Med Supp Plan T. Call it whatever you want. Don't pay any compensation on it. But why should they be allowed to enter the standard risk pool when they skipped out on paying years of premiums like the T65 people did? Coming to the party late, and sick, is not fair to the other guests.

Isn't that essentially how the ACA works….with guaranteed issue and no pre-existing condition exclusions…but everyone shares the risk pool regardless of when they enter? That said….I fully agree with your point in principle….There's definitely an argument to be made for a separate pool or different structure for late-entry GI Med Supp enrollees….

 

[LostDollar]

Caveat, NOT an agent.

Do you see carriers reducing or dropping Medigap household discounts?

 

[Winters Ins Agcy]

Don't know what others states rate increases are like. 28% across the board in Ok plans AFGN.

Not only is there a 28% general increase in OK, but I found out that ACE is tacking on approximately an additional 12% for an increase in the zip code rate factors!

In 22 years I've never heard of that, unless it's been done and I just wasn't aware it was being done. Is that legal? I thought rate factor increases could only be imposed on new business, not on existing policyholders?

 

[Winters Ins Agcy]

Mine too. All they did was flip us over to INA.

I bookmarked the new ACE/INA website when they sent it to me. It won't be active until either the 1st or the 15th. Honestly can't remember.

But I agree. Totally stupid.

INA is pricey in OK. Not worth the headache, especially since they're only paying 10% commission. Not to mention, I've lost total confidence in that entire conglomerate called Chubb.

 

[Winters Ins Agcy]

There will probably be 2 million termed mapd plans this aep . You fig 10% of those will use the Gi sep to a med sup. The sickiest of the sick to get a free pass to plan g or f and 100% of bills paid . The termed plans are another big claims headwind facing med sups we didn't see in previous yrs . Throw in the birthday rule growing and growing . It appears 10-15% increases could be the norm for several yrs min

More like 15-25%

 

[Millwood]

Not only is there a 28% general increase in OK, but I found out that ACE is tacking on approximately an additional 12% for an increase in the zip code rate factors!

In 22 years I've never heard of that, unless it's been done and I just wasn't aware it was being done. Is that legal? I thought rate factor increases could only be imposed on new business, not on existing policyholders?

Would think they would have to refile rates even though they closed block . And yep new INA rates appeared to be higher than old Ace rates even after they raised rates according to what Somarco posted
Shit canned everything from Ace and INA.