Boomer Benefits opinions?

[REWahoo]

There must be something more to the story, just the opposite of our experience with a Mutual of Omaha Plan G. I started with them in May 2020, here's our premium history:

Mon Yr	Premium/mo	Increase
May 2020	$119.98
Jul 2021	$120.69	0.6%
May 2022	$130.35	8.0%

I missed this earlier.

For comparison, I'm starting my fifth year with MoO and my Plan N premium at age 75 is $123.08. That's after this year's annual increase which takes effect each July. Increases (inflation + age) have averaged 8.5%, including the most recent increase of 5.4%.

 

[Midpack]

Yes, Medicare plans can definitely increase with age and inflation (My AARP plan does increase some each year) but the large Mutual of Omaha increase at age 68 was not expected. Even Boomer Benefits could not figure it out and recommended that we immediately change to another company which I was able to do. But DH could not change due to a preexisting condition. Boomer Benefits spent a lot of time with DH trying to find another company but no company would take him. I just which we had started out with AARP UHC instead of MofO.

So Boomer Benefits got you a competitive rate, and then when it wasn’t competitive 3 years later, they got you into another plan with lower premiums. Sounds like good service to me. Your earlier post #11 seemed to suggest otherwise - and that’s what this thread topic is about.

Preexisting conditions is a well known issue with any provider as I understand it, not unique to MoO, and not something BB can change. They can only share your options and make some recommendations, ultimately it’s the customers choice. IME Boomer Benefits did great legwork for me, and many others it appears.

Watch out for Mutual of Omaha. If Boomer Benefits are recommending Mutual of Omaha they are doing a major disservice to their customers.

 

[Midpack]

That's how I understand it as well.

Community rated starts out with higher premiums but should have more moderate increases over time when compared to attained age. (You pay me now, or you pay me later.) The big question is, which will cost an insured less over their Medicare lifetime? YMMV

Yep, just like SS, depends on how long the customer lives…

 

[Murf2]

Yep, just like SS, depends on how long the customer lives…

I believe I read somewhere that at age 75 they can no longer increase premiums. Is this correct or am I confused yet again? [emoji3]

Thanks again for all the input everyone & Happy Independence Day!

Murf

 

[REWahoo]

I believe I read somewhere that at age 75 they can no longer increase premiums. Is this correct or am I confused yet again? [emoji3]

I wish that were the case, but I've never heard/seen that anywhere. I just turned 75 and would love for my annual premium increases to stop!

 

[harllee]

So Boomer Benefits got you a competitive rate, and then when it wasn’t competitive 3 years later, they got you into another plan with lower premiums. Sounds like good service to me. Your earlier post #11 seemed to suggest otherwise - and that’s what this thread topic is about.

Preexisting conditions is a well known issue with any provider as I understand it, not unique to MoO, and not something BB can change. They can only share your options and make some recommendations, ultimately it’s the customers choice. IME Boomer Benefits did great legwork for me, and many others it appears.

My point is that Boomer Benefits now knows that Mutual of Omaha are substantially increasing rates in many areas of the country I think it would be a disservice of them to suggest Mutual Of Omaha to their customers at this point.

 

[Murf2]

I wish that were the case, but I've never heard/seen that anywhere. I just turned 75 and would love for my annual premium increases to stop!

That’s what I was afraid of. [emoji16]

 

[harllee]

I believe I read somewhere that at age 75 they can no longer increase premiums. Is this correct or am I confused yet again? [emoji3]

Thanks again for all the input everyone & Happy Independence Day!

Murf

Sorry not correct. My mother is age 90 and her Medicare Supplement just went up yet again.

 

[Murf2]

Sorry not correct. My mother is age 90 and her Medicare Supplement just went up yet again.

Wishful thinking, I guess. [emoji39]

 

[Dash man]

Wishful thinking, I guess. [emoji39]

I think there is some rule about Medicare Part B premium increases can’t go up more than the social security increase. Could that be what you’re thinking?

 

[Katsmeow]

I believe I read somewhere that at age 75 they can no longer increase premiums. Is this correct or am I confused yet again? [emoji3]

Thanks again for all the input everyone & Happy Independence Day!

If you are talking about AARP UHC supplement then not exactly, but a tiny glimmer with some partial basis. When you get an AARP Medicare Supplement your premium is discounted based upon your age. Then each year the premium increases 3% each year in your birthday month as the discount is removed as you get older. I think the total discount is 36% so it takes 12 years for the discount to be removed. Once the discount is removed then your premium does not change due to age.

However, apart from the above once a year the premium can change to costs of health care services. So, every June there is a separate increase that is based upon that. This amount varies from year to year and is not driven by anything specific to you.

So in a given year, my premium goes up in my birth month due to the 3% discount reduction. Then in June there is a general increase due to increases in cost. Once my discount has been fully removed, then I will no longer have the birth month increase and will only have the June increase.

 

[badatmath]

I think I have to use whoever my employer (by then former) chooses to sign up. Else I cannot get some benefit where my medigap is partially subsidized by old employer. If they still offer it by then.

 

[braumeister]

Fidelity -- another source of advice

I just learned today that Fidelity is now offering Medicare advice.
Haven't explored it, just wanted to let people know it's available.


Fidelity Medicare Services®

 

[plsprius]

Now that Fidelity has entered this game, I'm sure others will follow.

Note that Fidelity is currently licensed in these states only:

DC
Florida
Georgia
Kentucky
North Carolina
Ohio
South Carolina
Tennessee
Virginia

 

[braumeister]

Note that Fidelity is currently licensed in these states only

Interesting. I live in one of those states, so I guess that's why I was notified.

Too late for me; I've been happily on Medicare for some time.

 

[sengsational]

I need to find out if my plan is attained age, issue age or community rate.

My point is that Boomer Benefits now knows that Mutual of Omaha are substantially increasing rates in many areas of the country I think it would be a disservice of them to suggest Mutual Of Omaha to their customers at this point.

IMO, deciding upon the pricing model is the first thing to do when making the traditional medicare decision. But my experience with Boomer Benefits didn't include even a cursory overview of the available pricing schemes available. After I pressed the BB rep, I finally got confirmation that closing the book (which generates the "sick duck pool" and huge premium increases) was a thing to consider. But he switch the conversation back to "but look how low your first year premium would be with MoO".

This reminded me of the car salesman talking about the monthly payment instead of the total price of the car.

 

[Rianne]

IMO, deciding upon the pricing model is the first thing to do when making the traditional medicare decision. But my experience with Boomer Benefits didn't include even a cursory overview of the available pricing schemes available. After I pressed the BB rep, I finally got confirmation that closing the book (which generates the "sick duck pool" and huge premium increases) was a thing to consider. But he switch the conversation back to "but look how low your first year premium would be with MoO".

This reminded me of the car salesman talking about the monthly payment instead of the total price of the car.

I signed myself and my DH up for MoO. Not through BB but another broker and not because the first-year premiums were low. There were several other factors the broker explained in detail and he welcomed other options such as AARP, United HC, and others. He said there are no guarantees of future premium increases for any insurance company. MoO followed through quickly with customer service, explaining the website, offering phone numbers for help, etc.

I don't know what will happen years down the line. I expect premium increases. It's the nature of health insurance and I am sad we're losing the ACA. We've saved more $$ on the ACA plan than I could have imagined when I joined in 2014. Sure, hindsight is 20/20. Our deductible on the Bronze plan was less than an entire year of Medicare premiums if we did not get sick at all. It's all about if you get sick and how sick you get. Our coverage on ACA was 100& after deductibles. Our average spending on health insurance per year, since 2014, was less than $3000/year. So, we're forced to take Medicare. I'd say the true benefit is not worrying about out of network costs.

 

[CRLLS]

The tendency for a particular insurer's plan to increase more than another is documented in my state. Our state's (Illinois) SHIP program lists all companies and plans offered and their premiums in 5-year increments. i.e. Premiums at age 65-70-75 etc. It is very easy to see which companies use the cheap entry prices and make it up later, when it is more difficult to change companies and plans.

 

[anethum]

I did a little digging and found the following bonus programs for Medicare Supplemental agents who sell Mutual of Omaha's Medicare supplemental plans, and for those who sell United Healthcare's Medicare supplemental plans:

Mutual of Omaha: https://www.newhorizonsmktg.com/incentives/mutual-of-omaha-med-supp-broker-bonus-program-2
"$150 cash per underwritten policy" issued to residents in 44 states if I'm reading it correctly.

UHC: https://cornerstoneseniormarketing.com/wp-content/uploads/2021/01/UHC-Bonus.pdf
Bonuses ranging from $100 - $300 for policies issued to residents of 20 states if I'm reading it correctly. (Only policies for residents of 2 states result in bonuses above $150; IN policies get agents $200, MI policies get agents $300)

When I initially signed up for Medicare in 2019, I definitely felt like my BB agent was trying to steer me to MofO. I don't know if the bonus plans in 2019 were the same as the plans in 2022. Nevertheless, my state is not one of the states listed which gives agents a UHC bonus, but MofO apparently does give agents a bonus for policies sold to residents in my state.

caveat emptor

 

[harllee]

For those of you with Mutual of Omaha supplement policies have any of you had the experience that DH and I had--at about age 69 the premiums jump up by 30% per year? How do I find out if Mutual of Omaha did the "closed book" trick on us?

 

[REWahoo]

For those of you with Mutual of Omaha supplement policies have any of you had the experience that DH and I had--at about age 69 the premiums jump up by 30% per year?

I'm 75 and have been with MoO for four years. My annual increase has not been above single digits except for two years ago when it was 13.8%. MoO "closed the book" on my insured group three years ago.

How do I find out if Mutual of Omaha did the "closed book" trick on us?

Find out the name of the subsidiary MoO is currently using to write new policies in your state. If it is different from the name of your husband's company, they closed the book on his company. (For example, my policy is with MoO subsidiary United World Life Insurance and when they closed the book on that insured group, they started - and still are - writing new policies under the name Omaha Supplemental Insurance Company.)

 

[harllee]

I'm 75 and have been with MoO for four years. My annual increase has not been above single digits except for two years ago when it was 13.8%. MoO "closed the book" on my insured group three years ago.



Find out the name of the subsidiary MoO is currently using to write new policies in your state. If it is different from the name of your husband's company, they closed the book on his company. (For example, my policy is with MoO subsidiary United World Life Insurance and when they closed the book on that insured group, they started - and still are - writing new policies under the name Omaha Supplemental Insurance Company.)

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.) I wish there was something to do about this, at some point his policy may be thousands of dollars a month. I guess we could move to a state that allows you to change policies without underwriting but that is pretty drastic.

I did some research--just about all companies that write supplement policies are guilty of closing the books from time to time with the exception of the Blue Cross companies and AARP/UHC--I could not find any examples of them closing their books.

REWahoo, are you going to try to move from Mutual of Omaha to a different company?

 

[REWahoo]

REWahoo, are you going to try to move from Mutual of Omaha to a different company?

No, not considering it at this time - but then I haven't seen anything near a 30% increase.

As I've posted a number of times, when it comes to Medicare supplemental insurance I'm not convinced we can be sure which company's rates will be less costly over the long run. As you noted, almost all of them use the closed book strategy and the one or two that don't appear to have higher initial rates.

So which will end up costing me less over my lifetime - MoO's lower initial rates and potentially higher increases, or another company with higher initial rates and potentially lower increases? I don't think any of us know the answer.

 

[REWahoo]

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.) I wish there was something to do about this, at some point his policy may be thousands of dollars a month. I guess we could move to a state that allows you to change policies without underwriting but that is pretty drastic.

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.

 

[harllee]

No, not considering it at this time - but then I haven't seen anything near a 30% increase.

As I've posted a number of times, when it comes to Medicare supplemental insurance I'm not convinced we can be sure which company's rates will be less costly over the long run. As you noted, almost all of them use the closed book strategy and the one or two that don't appear to have higher initial rates.

So which will end up costing me less over my lifetime - MoO's lower initial rates and potentially higher increases, or another company with higher initial rates and potentially lower increases? I don't think any of us know the answer.

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.