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