CIGNA MedSupp Experience

[benefits365]

Pretty strong product in some areas, good comp. As they are moving slowly to get new agents contracted, they are allowing agents to write in MOST states prior to receiving a writing number by placing "PENDING" in the agent # line on an app...
Mostly agent friendly, to sum up my experiences.

 

[Daytona_Guy]

The challenges that I've had are when a client gets declined- they take an average of 45 days to return premium. Very unhappy clients.

I'm not quite sure how this can happen, as 1) They don't draft until approved and 2) They don't draft until the client's preferred draft date.

Unlike most every other company, they do not draft upon application, neither do they draft upon approval. They draft when the client indicated their preferred draft date is..even on that first draft.

So if the client wants a 7/1 effective date, but wants a 15th of the month draft date, CIGNA drafts their FIRST premium and application fee on the 15th.

This has been great for cash flow with everyone.

The only challenges with CIGNA that I've experienced is the language on their client materials. One client was SUPER upset that they received a document after their first claim was submitted that said client needed to sign a release of all of their medical records or else claims would not be paid.

The client felt like this was "blackmail" and unprofessional, since the HIPAA was part of the original application.

CIGNA'S agent support, especially Hannah in New Business, is superb. They pay commissions fast and even pay commissions before that first draft date I mentioned above.

They will even draft the first quarterly premium for you, at the date requested, which is nice.

It's not too often you run into a Med Supp client that cannot afford to pay for their next month at the time of application/approval, but for those circumstances, it is VERY nice to be able to continue with a 15th of the month draft cycle for them without interruption.

 

[medsuptage]

I don't know if it's all states or not. But can't imagine they would do it in some states and not others. But then again, the reduced commission didn't start out in all states. So who knows.

Thanks for posting about this, I wasn't aware of this until now.

I asked and they just changed this for just Georgia. They said they don't have any plans to change other states at the moment. I'm wondering if it was forced on them or if they changed it on their own.

Also, It used to be, I think, if you had to high of an open enrollment to Fully U/W ratio they would term your contract. I wonder if that has changed too for GA. I'm still waiting on an answer to this.

 

[sman]

Thanks for posting about this, I wasn't aware of this until now.

I asked and they just changed this for just Georgia. They said they don't have any plans to change other states at the moment. I'm wondering if it was forced on them or if they changed it on their own.

Also, It used to be, I think, if you had to high of an open enrollment to Fully U/W ratio they would term your contract. I wonder if that has changed too for GA. I'm still waiting on an answer to this.

There aren't any state laws that would have forced them to do it. I truly believe they were losing market share and decided to go back to full comp on T65 business so they could increase market share.

 

[medsuptage]

There aren't any state laws that would have forced them to do it. I truly believe they were losing market share and decided to go back to full comp on T65 business so they could increase market share.

you would think, but why only Georgia? Maybe a test run?

 

[insuranceconceptscindy]

I'm not quite sure how this can happen, as 1) They don't draft until approved and 2) They don't draft until the client's preferred draft date.

Unlike most every other company, they do not draft upon application, neither do they draft upon approval. They draft when the client indicated their preferred draft date is..even on that first draft.

I should have noted that these were "cash with app" cases. 90% of my clients do EFT, but some still like writing that check. . .

 

[Daytona_Guy]

I should have noted that these were "cash with app" cases. 90% of my clients do EFT, but some still like writing that check. . .

Ok.. that makes sense. I've never done that in five years since all we do are phone applications.

 

[glazarev]

So far nothing but good words. They are VERY COMPETITIVE in my state (PA), processing is fast, commission is one of the highest, and agent's support is excellent.

 

[glazarev]

Until this month, New Era only paid half the normal commission on T65 business. Other carriers have done it as well, I just can't think of who at this moment. It certainly isn't illegal.

I suspect New Era saw a dramatic drop in T65 business and that's why they finally changed their rules.

New Era continues to pay half of the normal commission for the Open Enrollment (T65) for the following states: PA, TX, TN.

 

[sman]

New Era continues to pay half of the normal commission for the Open Enrollment (T65) for the following states: PA, TX, TN.

Yes, since I'm in Georgia I was speaking specifically of my state.