Med Supplement Retention Rate

[TDFnCali]

I just thought of this out of the blue & was curious. Im in 1 of only 3 states where a client can move their supp plan once/yr regardless of health. So for u pros who do all or mostly supp biz in those other 47 states...how many ppl do you lose off the books after 6yrs when the renewals stop on avg?

Obviously u lose some to switching plans (with someone else), but based on how hard it is to get ppl to switch, Im sure this # is at most 5% after 6yrs. And u lose some to death, I dunno maybe 10-15%...but do any of u keep track of how many u lost strictly to renewals falling off after 6yrs & u couldnt switch them?

 

[vic120]

In 4 1/2 years I can't really tell you exact drop off other then is is very small, I will also say I don't notice a dif in CA or MO, CA was one of my first 6 states and when I first started I pulled mostly NY, FL & CA leads as they were cheaper. I do know off the top of my head my first 6 or so CA AARP supps with 2012 effective are still on the books.

I have had more drop off in FL then CA

 

[TDFnCali]

In 4 1/2 years I can't really tell you exact drop off other then is is very small, I will also say I don't notice a dif in CA or MO, CA was one of my first 6 states and when I first started I pulled mostly NY, FL & CA leads as they were cheaper. I do know off the top of my head my first 6 or so CA AARP supps with 2012 effective are still on the books.

I have had more drop off in FL then CA

So in 18 more mos tho, u are gonna lose some right? Obviously not all your clients are healthy enough to switch & renewals stop after 6yrs, correct?

 

[vic120]

So in 18 more mos tho, u are gonna lose some right? Obviously not all your clients are healthy enough to switch & renewals stop after 6yrs, correct?

Correct I have had 2 I can tell you of the top of head passed quickly one of which the daughter called me about the death 3 days before policy began. I had one mutual 3 year client pass a month ago. Yes not everyone will be healthy enough to switch either

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It is a small number that drop off though, My biggest losses are in NY & FL and even there its not of concern it is such a small number

 

[Glen Shelton]

I just thought of this out of the blue & was curious. Im in 1 of only 3 states where a client can move their supp plan once/yr regardless of health. So for u pros who do all or mostly supp biz in those other 47 states...how many ppl do you lose off the books after 6yrs when the renewals stop on avg? Obviously u lose some to switching plans (with someone else), but based on how hard it is to get ppl to switch, Im sure this # is at most 5% after 6yrs. And u lose some to death, I dunno maybe 10-15%...but do any of u keep track of how many u lost strictly to renewals falling off after 6yrs & u couldnt switch them?

I have talked to A LOT of Medicare agents about this.

I have never heard any of them quote a number less than 90% and the majority have quoted 95%+.

Really Med Adv. (for the guys who ONLY do Supps) and death are really going to be the biggest factors.

 

[midwestbroker]

AHIP did a Medigap satisfaction survey back in 2012.

They looked at a 5 year pattern and found 49% maintained the same coverage, 20% purchased a policy for the first time, 12% had changed from one Medigap to another and 10% had some other coverage and changed to a Medigap.

See page 16 of the attached report for more details.

 

[Brian F 11]

MedSupp retention is typically very high. We have 100% retention (been indep for 8 months or so) . Lol.

Seriously, in FL we primarily write UHC AARP, UA, MOO, And Gerber. All of them cite the main reason for cancelation is death, with at least 90% to 95% retention.

The company that offers the most data on their Supp product is UHC, who hasn't had a significant rate increase in several years. Rumor has it that will all change very soon. Will big increases force people to look for savings elsewhere? Something to watch.

UHC will also allow members to move up or down in coverage level without any underwriting at any time. My guess is that they will retain a lot of customers by moving them down from Plan F to A or N.

For everyone else, increasing premiums can change that retention rate. There are HDF plans, $0 premium MAPD, Part B Give back plans, that are MUCH lower in premium.

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[somarco]

All of them cite the main reason for cancelation is death

Do many of your clients call to let you know they have died?

 

[Bevo]

Rumor has it that will all change very soon. Will big increases force people to look for savings elsewhere? Something to watch.

Did the rumor define what "very soon" means..? This Summer type of very soon?

 

[Brian F 11]

Did the rumor define what "very soon" means..? This Summer type of very soon?

2017 Plans.

They visit me in my dreams to let me know I won't be receiving any more residuals from them.

Before they move on to wherever they are going, I sell their spirit a Reincarnation/2nd Chance policy with a No Eternity in Hell rider.

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