Med Supplement Retention Rate

[jacobtn]

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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8 months? You can't give an opinion yet...

 

[Brian F 11]

8 months? You can't give an opinion yet...

10th year in the business.

8 mos independent.

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My sack finally dropped about 8 months ago.

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[somarco]

10th year in the business.
8 mos independent.

What took so long?

 

[Bevo]

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%+.

These numbers are most accurate to everyone I've talked with over the last 8 years doing this as well. It's not a huge factor, especially if you have a strong retention marketing plan.

1) Keep as many new clients coming through the front door as humanly possible and put in place strong client retention marketing (send out cards, phone calls if you can afford to make them or have someone make them).

2) See If you can rewrite the client during the first 6 years to lower rates if they qualify. Consider AARP at some point near the end of the 6 years if the rates work out in their benefit. If not then, sometime later in the future they likely will, resetting the clock.

3) Spend over 80% of your time on step #1.

 

[kgmom219]

What took so long?

Keep reading his post

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2) See If you can rewrite the client during the first 6 years to lower rates if they qualify. Consider AARP at some point near the end of the 6 years if the rates work out in their benefit. If not then, sometime later in the future they likely will, resetting the clock.

I understand the rewrite idea, but why AARP, specifically?

 

[kstein]

If only AARP paid good commissions... AARP stops raising premiums after age 80 (age increase only) so eventually they are a good deal for older clients. Combined with liberal underwriting makes them very attractive. In Missouri, they are the only carrier with proven long term rate stability too... no other carrier comes close. Now back to the commission....

 

[TDFnCali]

These numbers are most accurate to everyone I've talked with over the last 8 years doing this as well. It's not a huge factor, especially if you have a strong retention marketing plan.

1) Keep as many new clients coming through the front door as humanly possible and put in place strong client retention marketing (send out cards, phone calls if you can afford to make them or have someone make them).

2) See If you can rewrite the client during the first 6 years to lower rates if they qualify. Consider AARP at some point near the end of the 6 years if the rates work out in their benefit. If not then, sometime later in the future they likely will, resetting the clock.

3) Spend over 80% of your time on step #1.

My question was more specifically how many clients do u lose (in commish) cause u CANNOT re-write them due to health?

The other 2 factors- Death (u cant help that) & them switching plans with another agent (u can keep pretty low) probably factor in to u losing (educated guess) 10%/yr. But how many are u losing to the question above?

 

[Bevo]

Keep reading his post

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I understand the rewrite idea, but why AARP, specifically?

Sorry I left out part of my point.....

Begin to seriously consider AARP near the end of their 6 years if they cannot qualify with anyone else. Compare AARP's rate at level 2 then to their current rate (which after 6 years should bu getting up there) to see if it's a good switch. Still keep tabs after 6 years until you can make that switch if it's worth it.

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My question was more specifically how many clients do u lose (in commish) cause u CANNOT re-write them due to health?

The other 2 factors- Death (u cant help that) & them switching plans with another agent (u can keep pretty low) probably factor in to u losing (educated guess) 10%/yr. But how many are u losing to the question above?

Right. My point was (sorry didn't make it clear enough) that with the above formula I put, not nearly enough lost to even keep track of or even care. Sorry maybe im not the best person to answer this.

 

[JimmyUt]

With AARP and our local BC/BS who does a GI move from like plan to like plan, I don't lose many unless they die or get lied to. Even the ones that do get lied to usually call me. I have over 90% retention on MA as well if not better.

 

[TDFnCali]

Sorry I left out part of my point.....

Begin to seriously consider AARP near the end of their 6 years if they cannot qualify with anyone else. Compare AARP's rate at level 2 then to their current rate (which after 6 years should bu getting up there) to see if it's a good switch. Still keep tabs after 6 years until you can make that switch if it's worth it.

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Right. My point was (sorry didn't make it clear enough) that with the above formula I put, not nearly enough lost to even keep track of or even care. Sorry maybe im not the best person to answer this.

No, thats good...not enough to worry about or make a difference, cool!

AARP has tighter guideline now beg July 1st, u cant just put all your unhealthy ppl with them anymore. They still arent as strict as others, but not a loose as they used to be now.