Average Life of a Med Supp?

[Glen Shelton]

Wondering if there is any actuarial evidence on how long Med Supps remain in force? Obviously the state that has the birthday month GI and rate increase history will affect the avg.

How many states have the birthday rule?

 

[GreenSky]

How many states have the birthday rule?

Birthdays happen in all 57 states.

The birthday rule is only in 2 states. One state has an anniversary rule.

A few are GI throughout the year.

Are you concerned with any one state in particular?

Rick

 

[sirherbie]

So if the avg person never switches plans the agent makes no commission after yr 6 in most states correct?Also what % of seniors age 70 and over can even qualify to switch med sups?

 

[goillini52]

So if the avg person never switches plans the agent makes no commission after yr 6 in most states correct?Also what % of seniors age 70 and over can even qualify to switch med sups?

After 6 years it around 20% or less of what it was, depending on the company.

Off the top of my head I'd say 70% can qualify to switch to a company with a lower premium.

 

[Todd King]

So if the avg person never switches plans the agent makes no commission after yr 6 in most states correct?Also what % of seniors age 70 and over can even qualify to switch med sups?

Some of the companies are starting to see that the agents are going to switch their clients at least when the commission runs out. They are starting to see that the will retain more business if they keep paying renewals after 6 years.

I'm not sure if this theory will spread to more and more companies but I'm hoping it does.

 

[jacobtn]

Birthdays happen in all 57 states.

The birthday rule is only in 2 states. One state has an anniversary rule.

A few are GI throughout the year.

Are you concerned with any one state in particular?

Rick

info on these states would be interesting. I believe CA is one that has the birthday month GI. Are you saying some states are always GI? bet the commissions are low there. Why is Michigan so high on comp? Because they only pay for a few yrs?

 

[somarco]

https://www.seniormarketsales.com/g...hday-rule-and-adverse-selection/#.VU6csZI4nTZ

 

[Glen Shelton]

https://www.seniormarketsales.com/go/sms/blogs/ask-roger-birthday-rule-and-adverse-selection/#.VU6csZI4nTZ

Washington is GI year around??

 

[beachbum2012]

Why is Michigan so high on comp? Because they only pay for a few yrs?

Only AARP/UHC and Bankers Fidelity pay 6 year commissions for medsupps here in Michigan. Everyone else is 3.

 

[Nikita]

info on these states would be interesting. I believe CA is one that has the birthday month GI. Are you saying some states are always GI? bet the commissions are low there. Why is Michigan so high on comp? Because they only pay for a few yrs?

Wow I had no idea that different states had different rules for GI. I thought this was all standardized on a federal level by CMS. What exactly are you guys talking about when use the term "the birthday rule?"