Boomer Benefits opinions?

[harllee]

There may be a way if you can find a good agent willing to work with you. The strategy is spelled out in some detail in this thread:

Medigap underwriting loophole?

Note: be sure to see MBSC's post #10. He is a subject matter expert when it comes to Medigap insurance.

Thanks, I may have to contact MBSC (wonder if he/she writes in NC). Funny that Boomer Benefits did not mention this strategy to DH.

 

[REWahoo]

Last year at age 69 I moved from Mutual of Omaha Plan G To AARP UHC plan G. My rate with MofO was $160, my rate with AARP was less than $100. If I had stayed with MofO this year my rate would have been around $200, my AARP rate is still under $100. Paying $100 per month instead of $200 per month was definitely worth it to me to switch from MofO to AARP.

Rates vary not only by company but by location, age and other factors. DW's MoO rate for plan N is $106/mo - and she's 74.

 

[Midpack]

REWahoo, thanks. DH's part D supplement that he took out at age 65 is with "Mutual of Omaha". A search of the North Carolina Dept of Insurance website shows that "Mutual of Omaha" no long sells Medicare supplements in NC--now the company is called "Omaha Insurance Company." So it appears that Mutual Of Omaha closed the book in NC and I assume that is why the premiums have increased so much. Due to DH's medical condition he cannot pass underwriting and I guess is stuck with his existing policy (that is what Boomer Benefits told him.)

Not sure that's universally true. My MoO Plan G premium went to MoO in 2019, but it went to United World Life Insurance Co thereafter - there was almost no increase, I posted our exact premiums earlier. Younger DW is in her first year with MoO Plan G and her premiums are paid to MoO. We've been NC residents the whole time. Maybe they switch clients after a year, but that's just a wild guess.

 

[zinger1457]

I had a discussion with a BB rep earlier this week, it was limited to available G plans based on my needs. He presented the cost and ratings of 4 available plans, cost ranged from $127-$135 so not much difference. He was pushing the benefits of MofO because of the higher rating (A+) compared to the other companies. Will probably go with AARP UHC, still have a few weeks to decide.

 

[imnontrad]

Every insurance brokerage will only represent some insurance companies. Sometimes that is just because of state regulations.
I like Boomer Benefits for 3 reasons:
1) There are many Certified Financial Planners who refer their clients to them
2) They ONLY sell Medicare policies so they have a lot of knowledge about the rules/regulations.
3) Although BB gets a commission from the insurance company for selling policies, the agents are NOT paid on commission and do not even know what the commission is from that company. By doing this, the agent's recommendation is not skewed by what it means for them income wise.

BTW, the Medicare Part B rate is supposed to be LOWER next year. This is because they overestimated how much would be used for a drug helping Alzheimers patients.

 

[anethum]

Every insurance brokerage will only represent some insurance companies. Sometimes that is just because of state regulations.
I like Boomer Benefits for 3 reasons:
1) There are many Certified Financial Planners who refer their clients to them
2) They ONLY sell Medicare policies so they have a lot of knowledge about the rules/regulations.
3) Although BB gets a commission from the insurance company for selling policies, the agents are NOT paid on commission and do not even know what the commission is from that company. By doing this, the agent's recommendation is not skewed by what it means for them income wise.

BTW, the Medicare Part B rate is supposed to be LOWER next year. This is because they overestimated how much would be used for a drug helping Alzheimers patients.

(Emphasis mine)

See my post #44 above. Apparently many Medicare supplemental insurers pay the agents significant cash bonuses for signing people up on their policies. That's separate from the commission paid to the agent's employer. I now believe that's why my 1st BB agent was steering me to Mutual of Omaha and not AARP UHC. At the time, their rates were nearly identical in my state. IIRC, MofO was about $1 or $2 more per month, factoring in both insurers' various discounts that I was aware of. The BB agent led me to believe that MofO's rate increases were smaller than UHC's. In the 3 years since I started Medicare, the opposite has been true in my state. Fortunately, I was able to pass underwriting and switch to UHC after I got a 10% rate increase on the 1st anniversary of my Medigap G policy. MofO has since had two more 10% increases in my state. I would now be paying about $40/month more with MofO than what I'm presently paying with UHC.

 

[harllee]

Based on my own experience, if I currently had a Mutual of Omaha supplement and I could pass underwriting I would change to AARP/UHC as soon as possible. If I had stayed with Mutual Omaha I would be paying $100 per month more for the same G policy.

 

[rrs26ja]

I use to work for IBM so I have to use Via Benefits. After a lot of research and calls to my Investment Teams medicare advisor, I chose Plan N. There are some good Youtube videos out there that compare the plans.

 

[Scuba]

So this is a naive question but I thought that the ACA eliminated medical underwriting requirements for healthcare policies. Is this only for people under age 65? So people over 65 who aren’t in perfect health are subject to large annual increases and/or can’t access supplemental policies at a reasonable cost?

 

[Deuce]

When I signed up I had the choice of plan F that was closing that year or plan G or N. I chose plan G because I pay the first $233 per year and then nothing for any doctors visits there after. I have had a shoulder repair and one knee replacement and only got billed for $233 at the beginning of the year. I am very happy. I chose to go with Anthem Blue Cross Blue Shield.

 

[harllee]

So this is a naive question but I thought that the ACA eliminated medical underwriting requirements for healthcare policies. Is this only for people under age 65? So people over 65 who aren’t in perfect health are subject to large annual increases and/or can’t access supplemental policies at a reasonable cost?

You have 6 months after you turn 65 to sign up for Medicare and a Supplement. During that period there is no medical underwriting. If you miss this window then you are subject to medical underwriting. In most states to change supplements after the 6 month month window you have to go through underwriting, a few states have laws that let you change without underwriting. There are different rules for Medicare Advantage Plans and the Part D prescription plans. It is all way too complicated.

 

[Tessie]

I think N over G is a reasonable option, depending on the difference in price. We took G but I’ve not seen any indication of Medicare overcharge, even in expensive South Florida.

Not sure how to measure customer service, as MediGap insurers aren’t in a position to approve or deny a service - that call is already made by Medicare.

One area that has come up in earlier threads is a MediGap insurer closes a policy group to new entrants and then starts pushing the price up, and because the policyholders are stuck, there’s no way out. That led me to opt for one of the large national insurers, who I suspect are less likely to do something like that, and avoid the smaller providers of life insurance and also MediGap.

I am a newbie here and will be going on Medicare in a few months. I’m not really understanding about an insurer closing a policy group. Can you explain that further and how would an insured person know that their insurer closed the policy group? TIA

 

[REWahoo]

I am a newbie here and will be going on Medicare in a few months. I’m not really understanding about an insurer closing a policy group. Can you explain that further and how would an insured person know that their insurer closed the policy group? TIA

I think this post by Telly does a good job of explaining it.

 

[Scuba]

You have 6 months after you turn 65 to sign up for Medicare and a Supplement. During that period there is no medical underwriting. If you miss this window then you are subject to medical underwriting. In most states to change supplements after the 6 month month window you have to go through underwriting, a few states have laws that let you change without underwriting. There are different rules for Medicare Advantage Plans and the Part D prescription plans. It is all way too complicated.

Thank you, Harllee. We have lots of education to do. DH turns 65 in March 2024. We have so far held off on exploring details because so much could change before then.

 

[harllee]

I think this post by Telly does a good job of explaining it.

Wahoo, thanks for the link to the post by Telly which goes into detail about Mutual of Omaha closing the books so they can substantially increase supplement premiums. That is exactly what happened to me and DH. I just cannot believe Boomer Benefits is still recommending Mutual of Omaha to people. What a disservice to their customers.

 

[sengsational]

I am a newbie here and will be going on Medicare in a few months. I’m not really understanding about an insurer closing a policy group. Can you explain that further and how would an insured person know that their insurer closed the policy group? TIA

The most important thing to understand, IMO, is the pricing model. And to do that, you need to know details about the pool you're jumping into. Is it a pool of people who are exclusively age X? So in 10 years, the pool will be exclusively people age X+10. As claims increase, the new price uses total claims divided by the number of people in the pool to set the price. At X+10, the claims mount, price increases and healthy people leave for a cheaper policy, reducing the denominator causing an even higher price. No new customers of age X+10 see that pool as a good idea, the insurance company essentially is "out of business" for that age group, so creates a "new company".

Contrast that to a pool with all ages greater or equal to 65. Younger, healthier people join, don't have many claims, so end up footing the bill for the older folks in the pool. This "community pricing" is great if you can keep up the influx of the young members. In order to incent new members, UHC discounts the price for young members. There's a defined "ramp" until it reaches the ultimate price, which everyone pays. This pricing model is more "insurancy" because you pay when you don't need it, and get benefits when you do. This model does not generate a pool where the healthiest people are incented to leave.

As mentioned, you can't know with certainly if you will come out ahead with the low initial price of an attained age pricing model plan, or if you'll be stuck in a closed book sick duck pool where you're too sick to leave, but making fewer claims than average, and so supplementing the others.

 

[nwsteve]

For readers in WA here is a pretty comprehensive summary of how Medigap works in WA State-https://www.insurance.wa.gov/sites/default/files/documents/what-you-need-to-know-medigap-plans_4.pdf
Lots of good general Medigap info. We also benefit from a "community rating" structure.

 

[harllee]

I am a newbie here and will be going on Medicare in a few months. I’m not really understanding about an insurer closing a policy group. Can you explain that further and how would an insured person know that their insurer closed the policy group? TIA

You will probably be safe getting a supplement from one of the Blue Cross companies or AARP/UHC. According to my research those companies have never closed a policy group.

 

[Dash man]

We just got our notice of increase from AARP/UHC for our Plan N. A whopping $4.84 combined for the two of us. We both turn 66 next month.

 

[teej1985]

You will probably be safe getting a supplement from one of the Blue Cross companies or AARP/UHC. According to my research those companies have never closed a policy group.

Neither have USAA or State Farm - they both just have their one group

 

[zinger1457]

We just got our notice of increase from AARP/UHC for our Plan N. A whopping $4.84 combined for the two of us. We both turn 66 next month.

I'm turning 65 soon and have been looking at the AARP/UHC G and N plans. The additional co-pays aren't an issue but I guess the scary part with the N plan is being hit with the 15% excess charge. Is it not as bad as it sounds? Seems like that could be a sizable bill for certain procedures if any doctor/hospital decided to add it.

 

[REWahoo]

I'm turning 65 soon and have been looking at the AARP/UHC G and N plans. I guess the scary part with the N plan is being hit with the 15% excess charge. Is it not as bad as it sounds? Seems like that could be a sizable bill for certain procedures if any doctor/hospital decided to add it.

I'm of the opinion insurance companies try to use the threat of being hit with the 15% excess charge to scare folks into paying a higher premium for a plan that covers the charge. The extra $20 or so you pay them per month is probably very profitable when you look at the stats on actual excess charge payments.

In reality Medicare Part B excess charges are relatively rare, happening less than 5% of the time (maybe 1-2%?). They are easily avoided by making sure up front the heath care provider accepts Medicare assignment, something everyone on Medicare should be doing anyway. DW and I have been on Medicare for 10+ years and have never encountered an excess charge.

Even if you do get hit with an excess charge, remember the additional 15% you may be charged is not based on the often outlandish rack rate before insurance, it is limited to 15% of the approved Medicare amount, which is always a far more reasonable charge.

 

[CRLLS]

I have not run into any excess charges in 5 years on Medicare. That doesn't mean that they don't exist. I don't ask a dr if they, a procedure or test is covered by Medicare. I always ask if they "accept Medicare Assignment". That means that they will not come after you for any excess since they have agreed to accept Medicare negotiated rates as full payment.

 

[ShokWaveRider]

All good for us. Got us our AARP Part G.

 

[Dash man]

I'm turning 65 soon and have been looking at the AARP/UHC G and N plans. The additional co-pays aren't an issue but I guess the scary part with the N plan is being hit with the 15% excess charge. Is it not as bad as it sounds? Seems like that could be a sizable bill for certain procedures if any doctor/hospital decided to add it.

There are seven states that do not allow excess charges, so the only Plan N additional charge are the up to $20 copays.

Connecticut
Massachusetts
Minnesota
New York
Ohio
Pennsylvania
Rhode Island
Vermont

I see you’re in Arizona, and I understand as others have said, the excess charges are rare and typically don’t add up to much. You can always ask all of your healthcare providers is they accept Medicare assignment to be safe.