Supp Enrollment before A&B eff date; pricing hold

[goillini52]

True but once the premium is paid usually well in advance I have not seen changes

Maybe UHC is different I could see that

But I don't think another company would change premium after issued and paid

Most companies have online apps, Even the ones I do paper are usually generated by the same method, Would generally, show any premium adjustment based on an effective date by the time App is either printed or set for esigg

Maybe I didn't word my comment right....I agree with you.

 

[somarco]

Speaking of holding rates . . .

Anthem (BSBSGA) says in their literature and policy that rates can be raised at anytime given 60 days notice. About a year ago they modified that stance administratively, not contractually, to say initial rates would hold for 12 months.

Do any carriers hold rates contractually? I have never seen it anywhere.

Supposedly GA doesn't allow more than one increase in a 12 month period but there have been numerous times where carriers have raised rates 2x or even 3x in the same year.

 

[vic120]

Speaking of holding rates . . .

Anthem (BSBSGA) says in their literature and policy that rates can be raised at anytime given 60 days notice. About a year ago they modified that stance administratively, not contractually, to say initial rates would hold for 12 months.

Do any carriers hold rates contractually? I have never seen it anywhere.

Supposedly GA doesn't allow more than one increase in a 12 month period but there have been numerous times where carriers have raised rates 2x or even 3x in the same year.

UHC has a decreasing discount in their Supp's in addition to the increase

 

[somarco]

UHC has a decreasing discount in their Supp's in addition to the increase

Not the same as what I posted.

UHC often does have two increases in a calendar year. One is for trend, the other is the discount recapture.

Talked to a guy a few weeks ago that was upset at the trickery used by UHC to lure people in. He referred to it as a "loan" you had to pay back.

Interesting way of looking at it.

Loan or discount, the future increase compounds. Your decreasing discount (say it is 3% per year) is applied to your CURRENT rate, not the original rate.

If original rate was $100 the next adjustment takes you to $103. The next one is 1.03 x $103 which results in a new rate of $106.09. Followed by $109.27 then $112.55.

This ignores trend increases.

Say trend is 4%.

You start off at $100 then $104 then $107.12 in year 2. Year 3 is $114;75, year 4 is $122.92 and so forth.

 

[MsMedicareHI]

I write 99% United healthcare for Med Supp‘s and there was never a rate lock guarantee for six months or a year. Supposedly, they now have a one year lock rate but I can’t find it in writing.
In the past, I’ve always told clients that they can get a rate increase at any time including before it’s effective and I’ve seen it

I just saw a blurb about the one year rate lock for UHC AARP MedSup. This is from the enrollment kit.

 

[goillini52]

Do any carriers hold rates contractually? I have never seen it anywhere.

A few years ago, I think almost all had an initial rate guarantee. I can't remember who, but I recall one that was only 6 months.

I just glanced at 3 UW Guides and Lumico didn't mention it. LBL and Thrivent say it's "their practice not to raise rates in the 1st 12 months".

 

[somarco]

LBL and Thrivent say it's "their practice not to raise rates in the 1st 12 months".

Which isn't contractual.

That's the same as including Silver Sneakers at no additional charge.

 

[goillini52]

Which isn't contractual.

That's the same as including Silver Sneakers at no additional charge.

Yep, LBL says it in the UW Guide...but not in my policy.

Here's an updated list.

Rate Guarantee 12 months: Aetna/Capitol Life/Union Security, Companion Life, Equitable National, Everest, LBL, Thrivent, Sentinel Security/ACL, Shenandoah.

 

[somarco]

Rate Guarantee 12 months: Aetna/Capitol Life/Union Security, Companion Life, Equitable National, Everest, LBL, Thrivent, Sentinel Security/ACL, Shenandoah.

And the guarantee is stated in consumer literature + the policy, correct?

 

[goillini52]

And the guarantee is stated in consumer literature + the policy, correct?

No, it's not a "guarantee".....it's a"maybe".