Thanks for the chart, CRLLS. In Illinois, MoO is less expensive than AARP until you reach 85 and the increase is not astronomical. It looks like the state you live in matters. My broker is calling me today to go through this in detail.
Thanks for the chart, CRLLS. In Illinois, MoO is less expensive than AARP until you reach 85 and the increase is not astronomical. It looks like the state you live in matters. My broker is calling me today to go through this in detail.
In Texas? Absolutely! They have and do! And in most states, too. But in some states (a small number), one can change Part B provider every year if you wanted to, without having to go through medical underwriting.I live in Texas and have Omaha Supplemental Company (plan G )which is one of many companies owned by MoO. I called them and learned that the book is still open on this company but that they do in fact close books and start new companies. Does anyone here know if they are allowed to do this in Texas?
In Texas? Absolutely! They have and do! And in most states, too. But in some states (a small number), one can change Part B provider every year if you wanted to, without having to go through medical underwriting.
If you can pass underwriting for another Plan B company you might be interested in, you can change. But don't let it go too long, lest you be stuck.
IIRC, MoO books stay open for ~ 5 years in TX. It's all up to them.
EDIT: I know very little about those special states that have different rules than the majority. For those states, I am NOT a source of information! There are people here who are versed in those details. I am not one of them.
I guess I don’t understand the term “closing the books” I spoke with MoO customer service and my broker. It is illegal to force someone out of their Medicare plan and have to get underwriting unless they stop paying their premiums. Many people switch Medicare insurance companies during open enrollment and go with a cheaper plan. Most if not all insurance companies raise their premiums at some point.
The SHIP chart for Illinois is as accurate as shown. I cannot speak for other states. My monthly premium is $92. My husband’s is $104. I asked my broker about closing the books. He did not know that term. If it means MoO changes anything within their company, it does not change your Medicare coverage. If premiums go up, please share what company does not increase premiums at some point. Every company offers incentives, discounts, other health incentives like gym membership etc. what is the deal with MoO?
Closing the books refers to not allowing new members to join that plan. As the group of people in the plan age, they raise the premiums to pay for the older group, which typically are less healthy as they age.
+1
And by isolating this group of aging and presumably less healthy folks, a new "book" (Company) can open up and sell Medigap policies to younger, healthier folks new to Medicare and to older as well, as long as they are healthy enough to pass underwriting. The premiums for this younger, healthier "book" of insureds can be lower, at least for a few years, until the book is closed...rinse and repeat.
MoO pioneered this "close the book" strategy, something that is now fairly common in the Medigap insurance industry, at least to some degree. MBSC will hopefully correct me if I'm wrong, but I believe this strategy is only associated with attained age rated policies.
There is no reason for the strategy to be limited to attained age policies. I guarantee that MoO also does this in states which "Issue Age" policies are required.
OK, I've been wrong on at least one other occasion.
I think it important to point out that MoO may have been the first and most aggressive with this strategy, however they are not the only insurer doing it. So if someone is concerned about this issue, simply staying away from MoO isn't necessarily going to insure you avoid the problem.
The obvious ones to me were Aetna nad MoO.
My next question is for someone who cannot pass underwriting with another company I wonder just how high one could expect premiums to go....Surely there is a law that limits that otherwise as the group ages and dies their premiums would eventually go into thousands of dollars...
My next question is for someone who cannot pass underwriting with another company I wonder just how high one could expect premiums to go....Surely there is a law that limits that otherwise as the group ages and dies their premiums would eventually go into thousands of dollars...
My DH is one of the people who is trapped in a Mutual of Omaha policy. The MofO company he is with (named Mutual of Omaha) quit writing new policies in our state and they started a new company (named Omaha Insurance Company) to write policies for younger healthier people. DH cannot pass underwriting to change to another company. He is trapped and his premiums are going up about 30% per year. I know of no limit on the amount the premium could go, we assume it could go up into the thousands. We understand that he has a couple of options. He can go with an Advantage plan and (then possibly back to a traditional plan under a loophole that we do not really understand) or we can move to a state that allows him to change policies without underwriting. Neither are good options for him. One saving grace is that I was able to get out of MofO because I passed underwriting and I was able to get a very inexpensive policy from AARP UHC so the cost of our combined policies is not too awful right now.
This from Mutual of Omaha website .."Rate increases aren’t personal. You can’t be singled out for a rate increase, no matter how many times you receive benefits. Your premium changes each year on the renewal date with or following the anniversary of the policy date until you reach age 99; and when the same premium change is made on all in-force Medicare supplemental insurance policies of the same form of classification and geographic region of the state."
Whatever that means..
I'm wondering if anyone here can give an example of a policy doubling or tripling from the original price..
My DH started with MofO at age 65 and he is now 71, his policy premium has more than doubled (actually it has gone up about 150%) in those 6 years.
Here are my numbers: I started on Medicare Plan G in NC in 2017 with MofO, my premium was about $80 per month. In 2020 I got a notice that MofO premium was going up to $190 (more than doubling). I found out that MofO has closed the book on me, discontinued selling policies from the company I was with and started a new company in NC. Fortunately I was able to pass underwriting and changed in 2020 to AARP UHC Plan G (my husband was not to able to pass underwriting and is stuck with MofO). In 2020 my AARP UHC policy was $90 per month. Now 3 years later my AARP UHC policy has gone up a little to $105 per month. If I had stayed with MofO my Plan G policy would now be over $250 per month.
I'm 67 and have had MoO for two years..Slight increase last year. The MoO subsidiary I'm with is Omaha Supplemental Company. It started in 2019. MoO told me yesterday that this subsidiary is still open but that they do close after a few years. She said they currently have 6 open companies writing Medigap policies. I will try to change to UHC but my wife may not be able to pass underwriting..Seems like this should be illegal..