Looking at Aetna or AARP/UHC

[Steve s]

Comparing prices at Aetna and AARP for a G supplement for 72yr old.
I figured Aetna would have their own supplements but instead they go through other companies and the price I was quoted was from AFLEC through AETNA at $123 a lot cheaper than what i pay at Bankers Fidelity. I found a post from Dec 4 2023 that talked about Aflac leasing Aetna operational infrastructure for their Medicare supplement. Guess i was just caught off guard thinking Aetna had their own supplement.
I also used AARP/UNC website to get a quote of $149.35. I like that i can do that on line.
I read on this site that a lot of retirees have AARP/UNC and seem happy with it. I don't read about as many having Aetna as their supplement. Any experience that you would like to share about Atena would be appreciated.
I may have to give Boomer Benefit a call but was doing a little research on my own for now. Thank you

 

[sengsational]

I'd recommend that you understand if all the policies you're comparing are the same pricing methodology; the bankers one could be community pricing or issue age and the other attained age, for instance.

 

[Steve s]

Sengsational..... thanks for pointing out the pricing. Went back to IOWA SHIP and Bankers and Aetna are Attained age where I believe AARP UHC is community priced. If I understand it right let's say in 12yrs I will pay $250 until then I get a discount which for 72 is 35% and it is a smaller percentage as I age.
Not sure if one pricing is better than another but thanks for the heads up.
Another note not sure how accurate SHIP is because if I look Bankers Fidelity for age 72 it is alot lower then what I pay. Must be the new enrollment price.

 

[CWradio]

Whatever Medigap (supplement) insurance company you pick for your Medigap plan check to see how many "closed block of business." (deadpool) policies the company has.

 

[Steve s]

Thanks for the replies. But still wondering if it is the norm when I contact Aetna and they push Aflec plus the representative had other companies he could recommend. Sounded more like a broker then Atena representative and was looking for anyone who has had experience with Atena. He did state all my paperwork would say Atena but Aflec was the provider.

 

[Momcpa]

Husband and I have had Aetna for our Medicare supplemental insurance for 4 or 5 yrs (don't know exactly), but we haven't had any problem with them covering almost everything that wasn't covered by Medicare. We haven't had any major surgeries, but have visited the E.R., met with numerous doctors over pain issues, X-rays, and have blood tests every 6 weeks to check on medication usage/affect. I am okay with continuing with them. Until the time they start denying large charges, then I won't be okay. YMMV

 

[sengsational]

Two things about community pricing. First, it is more predictable. You know in advance how much the increase will be due to age. You don't know what the inflation component will be, but that will be hitting all policies relatively equally. Second, community pricing means there's no risk they will "close the book", leaving those who can't pass underwriting with extremely high premiums.

Note that I didn't say community pricing is guaranteed to be less expensive over the time horizon. I happen to think it might turn out that way for us, but having more stability is worth something to us, which is why we went with the modified community pricing model.

Oh, yes, you got it right. The base price for when you're 86 is defined now, but you get the defined discounts for the intervening years. Of course the base will increase based on medical inflation, so the discount will be applied to the inflated base.

 

[sengsational]

I am okay with continuing with them. Until the time they start denying large charges, then I won't be okay. YMMV

In theory, all gap policies of a given letter should pay exactly the same. There could be "fancy footwork", but that should be fixable. What you might find are differences in "the customer service experience". If the calls go to some foreign country and are answered by someone with a barely understandable accent that also has no authority to actually DO anything (I'm looking at you BCBS NC), then avoid. It's hard to know how the customer service experience will be without being a customer with a problem, and actually going through it. The "star ratings" are the best we have, but are probably highly "gamed" by the insurance companies.

 

[Texas Proud]

My quotes were higher for Aetna and others over UHC...


There was one that was cheaper but it was a new company that was owned by CVS... went with safety over the very small price difference..

 

[Steve s]

Texas Proud When you got your quote from Aetna was it Atena supplement or another company through Aetna. That is where I am confused with my call from Atena. When I was on Atena site I filled out my info for supplement and when I received the call they said they were from Atena but he was recommending Aflac as the supplier through Atena. He said my paperwork would state Atena but Aflac was the supplier. I asked if Atena has other providers and he gave me a couple names. At that point i was not sure I was working with Atena or a broker. Just wondering if anyone who has Atena knows what I am refering to. Thanks for the great replies.

 

[harllee]

To my knowledge AARP/UHC has never pulled the "close the book" tactic to substantially increase premiums but I am not sure about Aetna. I would suggest the OP look into that--look into whether Aetna frequently changes the name under which it is doing business so they can close the book.

 

[Midpack]

OP, I’d encourage you to seriously consider this! Aetna was suspect in the earlier thread. Unfortunately it’s a double edged sword that rewards healthy customers and traps those with greater expenses (e.g. preexisting conditions).

To my knowledge AARP/UHC has never pulled the "close the book" tactic to substantially increase premiums but I am not sure about Aetna. I would suggest the OP look into that--look into whether Aetna frequently changes the name under which it is doing business so they can close the book.

We know Mutual of Omaha does it but I still haven’t seen anything definitive but here’s the post that came closest in an earlier thread on “closing the book.”

 

[Steve s]

Something to think about. Thanks! Leaning toward giving IOWA SHIP a call and maybe Boomer Benefits. Not sure if SHIP will be able to tell me if a company is known for closing the book on a class of people.
Great forum thanks!

 

[Midpack]

Something to think about. Thanks! Leaning toward giving IOWA SHIP a call and maybe Boomer Benefits. Not sure if SHIP will be able to tell me if a company is known for closing the book on a class of people.
Great forum thanks!

I like Boomer Benefits, but they played dumb when we asked asked about companies in the habit of "closing the book." Boomer Benefits got us on Mutual of Omaha, and we have had good prices and service, but DW and I are healthier than most our age, so closing the book is a benefit to us. That said, I will probably change to another provider who's not in the habit, while we can still easily pass underwriting.

 

[audreyh1]

I like Boomer Benefits, but they played dumb when we asked asked about companies in the habit of "closing the book." Boomer Benefits got us on Mutual of Omaha, and we have had good prices and service, but DW and I are healthier than most our age, so closing the book is a benefit to us. That said, I will probably change to another provider who's not in the habit, while we can still easily pass underwriting.

Same here. They recommended Mutual of Omaha because it was the cheapest and they pretty much blew off our concerns about the Mutual of Omaha practice of closing the book. We told them we wanted the UHC/AARP plan instead and they signed us up but seemed reluctant about it reminding us that it was more expensive.

But it’s precisely because of the Mutual of Omaha practice of closing the book that they are able to offer the cheapest plans to new folks signing up for Medicare! Obviously also they compensate the brokers more generously compared to UHC/AARP.

This closing the book trick runs counter to the whole idea of health insurance where risk is supposed to be spread across a large group of people, not later singling out the sicker folks and leaving them stuck in a sick pool.

 

[Midpack]

This closing the book trick runs counter to the whole idea of health insurance where risk is supposed to be spread across a large group of people, not later singling out the sicker folks and leaving them stuck in a sick pool.

I agree. But the irony is the practice of “closing the book” allows Mutual of Omaha (and Aetna?) to offer lower premiums to customers entering into Medicare supplemental plans, and attract more customers. Double edged sword?

 

[RetMD21]

Aetna has been know to close the book. How much it matters depends on your state of course

 

[audreyh1]

I agree. But the irony is the practice of “closing the book” allows Mutual of Omaha (and Aetna?) to offer lower premiums to customers entering into Medicare supplemental plans, and attract more customers. Double edged sword?

Well exactly. That’s what I meant. And it creates a viscous cycle where prices start to rise, customers realize they are trapped, some bail for cheaper plans as long as they pass underwriting, so some healthier customers are gone and prices start to rise more.

The way it was supposed to work with Medigap plans is everyone signs up at Medicare eligibility and is guaranteed access to plans with no underwriting for the initial 6 month window. Then you were supposed to be able to keep this plan indefinitely. Ideally you would have a large pool with older maybe increasingly sicker customers yet new younger customers joining each year to help balance it out. However some companies figured out how to game the system by closing the book thus segregating their pools into older and younger customers, and then raising prices on the older plans faster and at the same time lowering prices on the new open plans to attract more new customers.

 

[Texas Proud]

Texas Proud When you got your quote from Aetna was it Atena supplement or another company through Aetna. That is where I am confused with my call from Atena. When I was on Atena site I filled out my info for supplement and when I received the call they said they were from Atena but he was recommending Aflac as the supplier through Atena. He said my paperwork would state Atena but Aflac was the supplier. I asked if Atena has other providers and he gave me a couple names. At that point i was not sure I was working with Atena or a broker. Just wondering if anyone who has Atena knows what I am refering to. Thanks for the great replies.

I do not remember and cannot find an email with the info... I do not remember Aflac at all..

 

[MBSC]

You were talking to a broker. Aetna Plan G in Iowa is $180.68 (attained-age) for 72/Male effective 5/1/24. This assumes you pass underwriting. It includes an 18% increase on the open block effective 4/1. This block opened in 2019.

https://www.newhorizonsmktg.com/announcements/medicare-supplement-rate-changes-april-2024

AFLAC recently started selling Medigaps again so their rates are artificially low to attract subscribers. They have 90 policy holders in Iowa. Allstate is also new with similar rates. All small Medigap carriers use a third party for claims processing and customer service. That, by itself, should not be a concern as the economies of scale reduce costs.

This document lists the carriers and sample rates for Iowa starting on page 21.

1) AFLAC is listed under Tier One (their underwriter). Allstate is listed under National Health. Aetna is Aetna.
2) Rates do not include household discount you may qualify for.
3) The age 75 rate is what someone 75 is paying if they enrolled last month. It's not what you will pay at 75.

https://shiip.iowa.gov/media/76/download?inline=

All the majors except UHC, BCBS, State Farm and USAA (doesn't require military affiliation) close their books. This is not an issue if you live in a state that lets you change Medigap plans without underwriting.

 

[Steve s]

This Medicare supplement stuff is sure tricky! Remember all the research I did back in 2017, turning 65 when I purchased low cost Bankers Fidelity! It was for a few years but then had a growth spurt I wish my investments could match!
Thanks for the replies!

 

[REWahoo]

...I will probably change to another provider who's not in the habit, while we can still easily pass underwriting.

My advice - do it sooner than you would like because while it is a great plan it can be derailed in a flash, without warning.

DW (76) and I (77) both had plans to make our move away from MoO while we could but that changed for her after a single dr visit and some test results. I left them last month but she can't pass underwriting and is stuck. Thankfully her Plan N rate is still very reasonable but I'm not optimistic about how long it will stay that way since the pool she is in was closed in July of 2019.

 

[Midpack]

My advice - do it sooner than you would like because while it is a great plan it can be derailed in a flash, without warning.

DW (76) and I (77) both had plans to make our move away from MoO while we could but that changed for her after a single dr visit and some test results. I left them last month but she can't pass underwriting and is stuck. Thankfully her Plan N rate is still very reasonable but I'm not optimistic about how long it will stay that way since the pool she is in was closed in July of 2019.

DW has a hip replacement in a few weeks, and I have a colonoscopy in May, so I don't want to change until those events and payments are complete. So we expect to be shopping in July. Thanks.

 

[sengsational]

DW has a hip replacement in a few weeks, and I have a colonoscopy in May, so I don't want to change until those events and payments are complete. So we expect to be shopping in July. Thanks.

Just know that you're one scan, or one blood test away from being unable to pass underwriting. Once that's in your medical record, that could be "it".

 

[CWradio]

Just know that you're one scan, or one blood test away from being unable to pass underwriting. Once that's in your medical record, that could be "it".

Where does the insurance company review your medical records? Is there a medical clearing house? Thanks