Rates for “Modern Plans” Coming Out Next Month In Most States
This is a big year for traditional Medicare Supplement sales and it is going to get confusing next month as the NEW Medicare plans are introduced. “Modern” plans are available for a 6/1/2010 and current plans will no longer be for sale after 6/1/2010.
Current plans will be be changed, they will not terminate, but you won’t be able to SELL current plans. You must sell the new, modern plans which may look almost identical to you.
How does this effect you now? Tell your clients now that change is coming! They will find that their rates increase faster than the new blocks of business. In general, old blocks die and new blocks flourish. By “die” I mean that the rates spiral upward, since no new policies are being sold. This process takes years, but it will happen.
Therefore the best practice is to try to move your clients into a new, modern block of business. Companies are fighting to have the lowest rates on the market moreso than ever before.
Before you sell your next Medicare Supplement, think about the future. Prepare your client for the change…and wait. There is nothing else to do now than plan ahead.
Thanks,
Sylvia
SS are out in force every Tuesday at a Walmart near you!
I think I represent all insurance agents when I say that this concept of secret shopping is humiliating. The statistics on agent errors and malfeasance bear out that the overwhelming majority of agents abide by the rules. So why punish us all with this type of behavior. It has the smell of the USSR spying on its own citizens.
The most common questions you ask us: will the SS identify herself. NO. If I ask her is she is a SS does she have to admit it? NO. How to do I know if I met her criteria? If your behavior merits a complaint to the FMO, we will contact you immediately for retraining. Do I have to waste time with someone who obviously isn’t a potential client when I have others to wait on? SS won’t put you in that position. They are trained to approach your booth only when you are alone so they don’t disrupt another client conversation, but you must treat them with the same kindness you would any prospect.
Bear with us, they system is far from perfect and these SS are usually easy to identify: 50-ish woman who says “I really like my current plan but what do you offer.” They were out this week trying to see if agents would disparage their competition. Agents called me and said, my standard response to a client who loves her current plan is, “Great, I recommend you keep it!”
Let’s face it. Only a SS would say “I love my current plan. Period.” Everyone would follow with a “but…it is too expensive, it doesn’t cover my drugs, my doctors are not accepting it, etc. ” Agents would then try to find a plan that would better serve all the clien’ts needs.
Never say: “Humana?! They are a terrible company, Ican tell you horror stories!” While I use Humana merely for example here, you understand my point. There are many companies you may have had a sour experience with in the past –DO NOT MENTION IT!
When push comes to shove and clients insist on your opionion about XYZ company, I merely say, “I choose to represent the best companies in the market and I feel I do. There are good reasons why I don’t represent XYZ but I’m not allowed to discuss those reasons with clients. “
This gets my point across as well as saying point blank, “That company is terrible!”
We we elated initially when CMS allowed agents to start selling PFFS plan exits on October 1st.
Then we were told, wait, don’t talk to clients until ____ (fill in the blank as each company interpreted it differently).
Now we find that all the applications that were sent in prior to AEP, just sat there. CMS didn’t process them, you were not able to get ahead of the AEP backlog.
As you probably already noticed, commissions are based on applications receiving CMS approval –so you haven’t been paid. Pyramid was the only company to pay without CMS approval (it is their choice and they risk chargebacks later). Pyramid has paid quickly! All the other companies, except Anthem, will start processing commissions next week.
If you are set up for direct deposit you get paid a week faster!
Anthem’s PPO is very popular this year, keep in mind that they pay one month after the effective date.
Thank you,
Sylvia
