We have received many calls as to the impact of today’s announcement by Transamerica of an increase on plan F new business effective January 1, 2016. Here are a few highlights, rate comparisons and clarifications on the announcement.
This announcement only impacts NEW business, not in force policies! In-Force business would be a separate announcement and has not been announced or approved yet.
Attached are the tools you need to stay competitive in Missouri for when the 19% rate increase for new business with Transamerica Medicare supplement hits on 1/1/2016 for plans A, F, & N. The great news is that plan G is taking a 9% rate decrease!
- Commission comparison for MO anniversary, GI business, replacements, and agent level new business
- Who has a household discount, how much it is, and how a client can qualify
- Area Plan F rate comparisons for MO
- The Transamerica announcement
If you change your client from plan F to a plan G with Transamerica then they consider it an internal transfer, and they pay the new policy based upon what year it is from the old policy. For example, if someone has a plan F in year three, they would pay the same comp rate for the new policy as it would be in year three.
Please note: Applications submitted and *placed prior to 11/9/15 with any future effective date will receive thecurrent rates for the first year and then will receive the rate change at the end of the twelve month guarantee period.
*Placed = In home office, with money (or approve bank draft), approved underwriting and policy issued