Personal question: switch medicare supplement?

Professional Actuarial Topics Health/Disability
1

An agent suggests my wife should switch her guaranteed renewable Medicare insurance. Agent observes:

  1. All medicare supplement plans of a certain type (hers are G) must provide exactly the same coverage. The only difference is price.
  2. Her existing plan is guaranteed renewable.
  3. Her current insurer sells Plan G to new policyholders for less than she is paying.
  4. A different insurer sells Plan G, also guaranteed renewable, to new policyholders for about 30% less than she is paying.
    The agent says no downside at all to switching to a Plan G with that new insurer. There is underwriting, but it appears to be minor, and if she doesn’t qualify she can just keep the existing policy.

Anything else we should be considering, besides monthly premium? It occurs to me now that perhaps we should pay more attention to the possibility that this particular new insurer might reject her, a decision which could influence other possible new insurers she might then want to consider. Her health is good.

2
  1. true
  2. true
  3. this sounds odd, unless you are viewing a carrier with multiple charters,or her plan predates 2020.
  4. probably true

a. assuming both policies attained age or community rated

b. would look at rate increase history, though 30% is a lot

c. be sure he is truly looking apples to apples, some carriers (AllState) offer so many discounts the low rate could be deceiving if she doesn’t qualify. Be careful of a rate bait and switch.

d. most states publish MedSup rates on DOI webpage. AARP and BCBS tend to have more stable rates, so if only 25% less than current, may be a better long term option

e. If cost is an issue, look at Plan N, it tends to have a better price point, with minimal change in benefits, copays on Dr ($20) and ER ($50) visits

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3

Are you in an attained age or entry age or community rated state?

It’s been ages since I took GH Spec

Anyways go for the lowest priced option. Med Supp plans are standardized and any additional supplemental benefits (gym membership or shoes) are very minimal compared to rich Part C plans - you shouldn’t have much to worry about

4

He wants the commission.
Period.

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5

of course, but that doesn’t mean switching isn’t a better option.

6

Isn’t it also the case that the coverage would be the same, but the price being different because there’s a different copay/coinsurance provision?

One thing I don’t see mentioned about changing carriers is the need to provide the new info to the relevant medical/pharmacy offices. Not sure just how much of a headache that might be.

7

Isn’t it also the case that the coverage would be the same, but the price being different because there’s a different copay/coinsurance provision?

no, MedSup policies are standardized, all plans with the same letter are the same.
However, some do have innovative benefits or add-ons (gym memberships…) that might not be replicated

One thing I don’t see mentioned about changing carriers is the need to provide the new info to the relevant medical/pharmacy offices. Not sure just how much of a headache that might be.

The PD (drug, Part D) is separate from the MedSup, so changing one doesn’t necessitate changing the other

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8

one additional point, a number of states mandate GI switching between carriers.

If you are in one of them, the agent is gouging for commissions as many companies don’t offer full commissions on GI sales

California , Connecticut, Idaho , Kentucky , Maine , Maryland , Massachusetts ,Minnesota , Missouri , Nevada , New York , Oklahoma , Oregon , Rhode Island , and Washington

If they your carrier has a different affiliate selling lower rates he can switch you with the same parent company only, in Illinois (8/25), and Louisiana

9

But wouldn’t there still be the “headache” of providing the updated information to whomever is going to bill for the cost of the benefit?

10

I have no idea of those logistics

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