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Not me. I always try to offer my prospects the plan that makes me the least at first. If they won't buy that then I try to make as much as possible off of them...
Medicare Supplement Plan?
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Not me. I always try to offer my prospects the plan that makes me the least at first. If they won't buy that then I try to make as much as possible off of them...
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jenniferreynold
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thanks everyone for your suggestions...
supersupps
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I;ve got a FL client with a D, no excess charges. someone posted that excess charges are a reality in FL? where and when are they are a factor? I think most all hospitals and skilled nursing who accept medicare cannot excess bill.. if they accept, they cannot excess bill? correct?
G
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I had the same question when I was selling supps once. I had my contracts with Frank and this is what he advised...
"I have been selling Med Supps for over sixteen years and I neither sell Plan F nor recommend it. I have clients throughout the US. Excess charges are not an issue regardless of where one is. I only sell either Plan D or Plan G if the company doesn't offer a Plan D.
ALL hospitals Accept Assignment so that is NEVER an issue.
The "cap" on Excess charges really isn't a true 15%. Medicare reduces the amount they would normally approve by 5% then the doctor can add the 15%. If one does the math, the doctor only receives an extra 9.25%. That is why virtually all doctors Accept Assignment.
Plus, if the doctor Accepts Assignment the checks from Medicare and the Insurance company go directly to the doctor. If the doctor does not accept assignment then the checks from Medicare and the Insurance company go to your client. Now the doctor has to worry about late pays and no pays.
It is not financially advantageous for the doctors not to Accept Assignment."
- 2,452
Just so you know new era does pay commission on the part B deductible premium.
No, AARP does not offer a Plan G in Florida. My belief is that it's far too profitable to them to offer just Plan F.
If Plan F's annual premium is greater than $147 more than Plan G, then you save money by going to Plan g
Most often, and we only write 200-300 cases per year, so what do I know, but must often we see a difference of $250 to $300 a year for that $147 deductible.
The client will save $100 to $300 per year by going to Plan G and paying that $147 deductible themselves.
The other factor is the rate increase.
Year after year we've seen Plan F rate increases far higher than Plan G rate increases.
Why?
A couple of factors. First, Plan F must be offered as guaranteed issue for those folks leaving an employer plan, etc. Plan G in most states is not guaranteed issue and must be obtained only after asking the health questions. (Not talking about T-65's here as we don't market to them.)
So, you have a moderately healthier risk pool of folks on Plan G than you do on Plan F. This impacts rate increases.
The other, more contributory, factor is that Plan F is an all-you-can-eat buffet and there is no barrier to as many doctor appointments as they want. Congressional budget folks are calling this "first dollar" coverage in that there is coverage from the supplement for that very first dollar of need.
This means utilization is through the roof, compared to Plan G or N, where a deductible is factored in to their decision to go for minor visits.
This is why we continually see situations like last year in SC where Mutual of Omaha had an 18.5% rate increase for Plan F, yet a 12.5% rate increase for Plan G.
Another example, GPM Life in CT, 12% on F, 0% on G.
GPM Life in OH, 15% on F, 8% on G.
One thing a senior must consider is not only today's premium, but the worst case scenario in case they have a heart attack, stroke, cancer, etc. and they're stuck. I liken it to a game of musical chairs. You can continue to chase the best rate every year UNTIL something like that happens to you. Then, you must stay with your current plan. It's guaranteed renewable, but you're stuck there.
Would you rather be "stuck" on a plan with a small rate increase or a larger rate increase each year?
On a screen share with my potential clients, I show them a graph of a trend line showing those historical figures above. Just show them out 5 years or 10 years and what would happen if they were stuck on Plan F vs. Plan G. It's quite convincing.
The agent, by the way, does not get compensated on the $147. They don't even get paid on up to $200 with some companies - when writing Plan F. So, if you think you'll write a higher premium to get a higher commission, that's not necessarily the case. That deductible is a pass-through to Medicare and is not compensation-worthy.
So, while we should always respond to their need and many seniors just don't want to fool with it, there are some who are seeking the best value today and tomorrow. For them, you're best suited to give them the information so they can make an informed decision.
F is great plan. 100% coverage and absolutely no out of pocket costs.
HOWEVER, a newer plan called Plan N is all 100% coverage. The only difference is if you go to the doctor's office you could pay
$0-$20 copay, $50 for emergency but its waived if you are admitted. This plan compared to the F plan will save you an average of $250 - 350 a year.
HOWEVER, a newer plan called Plan N is all 100% coverage. The only difference is if you go to the doctor's office you could pay
$0-$20 copay, $50 for emergency but its waived if you are admitted. This plan compared to the F plan will save you an average of $250 - 350 a year.
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Given that it doesn't pay the Part B deductible of $147, it better save more than $250 or it's likely not worth the few dollars difference after factoring in a few office visits.
In CA, I tend to save people $400-600 with Plan N. It's probably 90% of my sales. In TX and other states, Plan D or G may be a better value.
Rick
- 4,707
I sell plan F only because I just can't wrap my head around all the different Modernized plans.
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