Mutual of Omaha Enters Medicare Advantage Market

[somarco]

MOO does like to rotate carriers about every 3 - 4 years. Sadly they are not the only ones.

Aetna just introduced ACI to GA. That makes it the 5th Aetna carrier since 2010. Genworth, Aetna, CLI, AHL and now ACI.

Back on topic . . .

Sounds like they will focus on large markets and offer mostly (or exclusively if they can get away with it) HMO plans. "Tight networks" (per the press release) will allow them to offer what will be perceived as rich benefit, low premium plans.

They won't overtake UHC/AARP but can certainly make a dent in things.

Also interesting to watch is what happens now that Aetna and CVS have reached an agreement.

Interesting read . . .
https://lumeris.com/blog-thinking-starting-medicare-advantage-plan-2019-starts-now/

 

[goillini52]

I could be wrong here but from what I've been told is they basically limit the number in the risk pool. We got 2000 people in this one plan, so we're shutting it down (just using that # as an example). As those 2000 get older and sicker their premiums go up because they don't allow anyone else into that risk pool.

I've never had that confirmed but it makes sense.

I've never heard that before, but I guess it makes sense that when setting up a new carrier the actuaries set a limit, but that wouldn't make sense if they were still showing enough profit.

Especially with MOFO, they start out cheap, and after a couple of years they're not competitive. Then they close that block of business as they're rolling out their newest carrier with competitive rates...then rinse and repeat. The people stuck in the closed block that can't move will end up paying 3 times as much for the same coverage as those that can qualify to switch.

It's about time for them to roll out a new carrier. I'll bet on Cornhusker Mutual for the next name. Any other guesses?

 

[somarco]

Sounds like 2,000 is an arbitrary number. Normally when carriers close a block it is because of declining sales. Their rates are out of line with other carriers so they close that block and start a new one.

Time (Assurant, Fortis) did that in the U65 major med market. Other carriers did likewise.

MOO is cropping up again in some states. Same for United World. About time for them to introduce the next carrier in Georgia. Probably some time this summer.

 

[Northeast Agent]

One of my FMOs just told me they will be first entering into the San Antonio and Cincinatti markets next year. And Part D in 49 states.

 

[TampaHound]

Sounds like 2,000 is an arbitrary number.

That's because I made it up in my example.

 

[somarco]

So you made up an arbitrary number?

Outstanding!

 

[JimmyCrappedCorn]

One of my FMOs just told me they will be first entering into the San Antonio and Cincinatti markets next year. And Part D in 49 states.

I have been told they have no plans to market Part D plans at all but lets hope you are right.

 

[goillini52]

One of my FMOs just told me they will be first entering into the San Antonio and Cincinatti markets next year. And Part D in 49 states.

What about the other 11 states?

 

[ExProgrammer]

It's about time for them to roll out a new carrier. I'll bet on Cornhusker Mutual for the next name. Any other guesses?

Maybe they'll take a gamble and call it Pari-Mutuel of Omaha.

 

[goillini52]

Maybe they'll take a gamble and call it Pari-Mutuel of Omaha.

Or maybe Cornhole Mutual.