Bankers Fidelity Med Supp Cheapest Thing on the Block

[AllGold]

They have been advertising in Michigan a lot lately. And last I checked, their prices were killer here.

I was just about to post a question about where to get a contract. I was starting to think they might be captive only but I apparently not.

So, other than ksigmtsu, where can I get a contract?

 

[ksigmtsu]

What's your definition of "close"?

I could just send you a rate sheet?
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Actually, I was mistaken, in GA they're all issue age policies. I was thinking of a different state. However, I went ahead and sent the rate sheet.

 

[junkman]

If I saw correctly, their AM Best rating is B++. That a concern for anyone?

Opinions/thoughts solicited.

Jim

No. Ratings are not good predictors of integrity, good claims adjudication or carrier future longevity.

I would like to know how they set up their pools. I always say that Claims per Member + Administration = Premium. Low premium means they aren't paying something or plan on making adjustments after they get market share.

 

[somarco]

Low premium means they aren't paying something or plan on making adjustments after they get market share.

Or perhaps they do a better job than most at managing risk.

 

[taterpeeler]

No. Ratings are not good predictors of integrity, good claims adjudication or carrier future longevity.

I would like to know how they set up their pools. I always say that Claims per Member + Administration = Premium. Low premium means they aren't paying something or plan on making adjustments after they get market share.

Really? Really? They are not paying something? Do you sell Medicare supps?

B rated carriers only matter to those selling them... Me..my plan is 5bucks cheaper a month and has an A rating... The plan your looking at is B... I win, you loose

 

[ksigmtsu]

No. Ratings are not good predictors of integrity, good claims adjudication or carrier future longevity.

I would like to know how they set up their pools. I always say that Claims per Member + Administration = Premium. Low premium means they aren't paying something or plan on making adjustments after they get market share.

It can also mean they're not paying as much in administration and advertising, and not paying as much in compensation on the carriers side.

Does not have to mean there is shady activity in any way.

 

[junkman]

It can also mean they're not paying as much in administration and advertising, and not paying as much in compensation on the carriers side.

Does not have to mean there is shady activity in any way.

It means what I said. They are not paying something. There were only a 2 expenses in my equation. Claims & Admin. They have to pay claims or would have trouble. They could underwrite along the lines of Farm Bureau in the individual market but have take all of the mandated GI/OE applicants but only those that meet the criteria. They could also be setting up new pools every time 1 gets dirty. They could strip commissions as does Blue Cross TN.

I don't know their practices. I haven't done business with them & haven't followed the senior market for long. I just noted that they have low rates and asked why. I avoid shady carriers. So....why are they low? Anyone look into premium structure?

 

[jacobtn]

Did they just start a new pool every year or so? What's the deal?

can you email me their rates or outline of coverage for tn?

 

[somarco]

It means what I said. They are not paying something.

That's a broad statement that rarely is reflective of the real justification for more attractive rates.

If the claims submitted are contractual obligations and they are not paying them, that is one thing. But if the wording of their policies is such that allows them great latitude in denying or approving claims, that is another.

All Medigap plans with the same letter are identical so contractual differences are virtually non-existent. In most instances where a carrier is obligated contractually to pay a claim and is not, that usually occurs when the block turns sour.

I am not defending or attacking BL, just stating facts as they relate to managing a block of health insurance business.

It seems you are making assumptions about the Medigap business that could apply in the major med business. The Medigap block is unique in many ways including the standardization of benefits and a mix of GI policyholders.

Mutual of Omaha and subsidiaries have a proven practice of lowballing rates, jacking them up, freezing the block, and substituting a sister carrier to start the cycle over again.

Unless BL owns a sister company there really isn't any way for them to freeze a Medigap block and introduce a new, lower priced alternative.

 

[rousemark]

Unless BL owns a sister company there really isn't any way for them to freeze a Medigap block and introduce a new, lower priced alternative.

I have seen companies do it time and time again. They issue policy form #9210 for a couple of years with low entry premiums. They then quit accepting new business on that form and start to issue policy form #9220. It is true that both are standardized plans but as 9210 ages, the claims ratio goes up and they can justify the rate increase based on claims ratio for that policy form. 9220 is still accepting younger, healthier clients and therefore has no need for as great an increase .. However as the pool on form 9220 ages, they stop accepting new business and come out with form #9230 and the whole process starts all over. It is a game companies play with all forms of health insurance and Med Sup is not immune.

I was contracted with Atlantic American years ago and always found them to be a good company. They went through some financial strains at one time due in part, I believe, to an MGA that controlled a large block of business that he rolled when he started his own company.