Question for the experts about med supps

[naddy512]

I am new and to my understanding when i sign someone up for a med supp plan, the customer needs to cancel their old policy themselves.
But my main question is i post the effective date of the new policy delayed at least 4 weeks so do i also post their check 4 weeks as well
please leave me some input on how to handle this so i know what im talking about with the customers

Example
I sign someone up on 7/8/07
i put effective date for 8/8/07
the check they write date should be 7/8/07

if this is totally wrong lease tell me how to you do it

 

[Frank Stastny]

I am new and to my understanding when i sign someone up for a med supp plan, the customer needs to cancel their old policy themselves.
But my main question is i post the effective date of the new policy delayed at least 4 weeks so do i also post their check 4 weeks as well
please leave me some input on how to handle this so i know what im talking about with the customers

Example
I sign someone up on 7/8/07
i put effective date for 8/8/07
the check they write date should be 7/8/07

if this is totally wrong lease tell me how to you do it

The check should be dated the day they sign the app. The effective date depends on the issue date of their existing policy. If their existing policy has an 8/1/whatever year issue date, then the new policy should go into effect as of 8/1/2007. If they have an effective date of 8/1 and you make the new policy effective 8/8 then they will perceive that they will be without insurance for 7 days.

Actually they have a 30 day grace period but if something happens to them on the 5th they will not be covered unless they pay their former company one months premium. If they do that they will have double coverage from the 5th to the end of the month.

 

[senior-advisor-indiana]

Most policies that you run into will have an effective date of the 1st of the month because that is when they start medicare. You will run into some that are on different days though.

When I write an app I never collect anything but a voided check. Unless they are paying Annualy or Quarterly. If you collect a voided check you won't have to worry about sending the check in if you fax it.

 

[midwestbroker]

Really depends on the carrier. I know that Mutual of Omaha will give you any effective date you want. However, they will only draft funds on the 1st or the 15th.

I normally tell people to have a 1st of the month effective date to make things easier. They might have double coverage for a few days, but that is better then no coverage for a few days.

 

[senior-advisor-indiana]

Why would you make them pay for extra coverage? Just because it is easier for you? Thats crazy. Isn't it immoral to give them duplicate coverage? Is that even legal?

 

[Guest]

Technically it is illegal in NC to have duplicate coverage. Not sure how well it is enforced, or if it is even possible, or practical. I suppose the principle is to protect the consumer from paying double for double coverage on an ongoing basis.

But then, neither are the speed limit laws obeyed or enforced; or at least only a very SMALL percentage of both.

 

[Frank Stastny]

Technically it is illegal in NC to have duplicate coverage. Not sure how well it is enforced, or if it is even possible, or practical. I suppose the principle is to protect the consumer from paying double for double coverage on an ongoing basis.

But then, neither are the speed limit laws obeyed or enforced; or at least only a very SMALL percentage of both.

It is in Missouri also, in fact, I believe that it is everywhere. However, I'm sure that there aren't any "effective day police" checking with people. I'm sure someone would have to call the DOI and complain before it would become an issue. I have some clients who I believe would actually do that though.

I can't think of any reason to make the effective date of the new policy different than the effective date of their existing policy. The date the insurance company requests payment really has nothing to do with the effective date.

 

[midwestbroker]

I have only done that once, per the client request. I had a guy coming off a group plan and he was not sure when his coverage would end, on the 15th or the following month. After not getting an answer from his HR department, we went with the 15th just in case.

Ended up that he lost coverage the following month, so he had "double" coverage for 15 days. However, the client was well aware of what we were doing, and requested the 15th effective date.

That scenario I would recommend that they take the earliest date. If they know the end date of the policy, then I would sign them up for coverage effective the following day.

Sorry if I was unclear with that.

 

[senior-advisor-indiana]

Gotcha. Its not like they are paying any extra money anyway. I signed someone up for the 1st one time. Then they told me their coverage lasted till the 15th. We changed the effective date to the 15th and the bank draft stayed the same. They just had a different date.