Plan F is dead – or is it?
As you may have heard, the Plan F Medicare Supplement is going away in 2020, at least for new enrollees. The big question is - who would want Plan F to go away? It's not insurance agents, it’s not consumers, and it's not even the insurance companies. So who is it?
I’m sorry to tell you it’s the Federal Government. Specifically, the Republicans believe that first-dollar coverage is costing Medicare too much money. There have been two independent studies done, and both studies concluded that to not be true. In other words, a Medicare beneficiary is NOT more likely to have a treatment with a Plan F Med Supp than they are with a Plan G. However, the Feds have their minds made up that there is no need for first-dollar coverage.
So, in the year 2020 the F Plan will no longer be offered to new enrollees, although those who already have it may keep it. The lawmakers in D.C. are looking everywhere they can to pinch a penny to save Medicare. I hate change, but since I’ve had several months to ponder this, I believe that we agents are sitting on a gold mine, if we're ready to stake our claim.
Opportunities, not problems
These kinds of opportunities don't come around everyday, so consider the one you have before you. Your current policyholders will not have to give up their Plan F policies, but most likely the premiums on a block that is no longer active in new sales will see significant rate hikes.
Let's take a quick trip back to look at Plan J. Once it was pulled from the market and no new sales came in, those premiums had the highest rate increases. I’m betting the same holds true for Plan F starting 2021 or earlier. My recommendation is to start selling the Plan G now, and take a serious look at your block of Plan F business. I would recommend moving that block to Plan G with an add-on of either a final expense product or a good cancer plan.
If you’ve already done the math to package Plan G with final expense you should see it's a winner. By doing this you will be giving your clients more benefits than before, and your renewals have been enhanced. It is proven that consumers purchase insurance for benefits - not to save money. If you position yourself and business correctly, you can take advantage of this change the Federal Government has placed on your policyholder, and you will end up helping your client and your business.
I have never liked the fact that the insurance companies have been taking $200 off the commissionable premium for a $147 benefit. Consider writing Plan G and a final expense on your next sale, and when replacing existing business it should be an automatic process.
Good news if your clients still want Plan F
Some clients will have already had Plan F and they are simply not willing to switch to Plan G and pay a deductible, regardless of whether or not the math works out better. For those cases, there’s a carrier with an appetite for the Plan F business, and they are competitive even against Plan G. Prosperity Life has the number one Plan F rate in multiple states. Be sure to check out the details on this company, and get contracted.
- One of the MOST competitive Plan F rates in your area!
- Full Commissions on the Part B Deductible
- A- (Excellent) AM Best Rating
- Tropical Incentive Trip for only $40k in Production!
- No Interest on Advancing & No Appointment Fees!
- 7% Household Discount (if client is living with someone over age 18)
- Product backed by decades of industry experience
Happy selling and we appreciate all your efforts!
Prosperity Life Medicare Supplement Plan FGet Appointed Now
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