Texas Farm Bureau Insurance sponsored Medicare Supplement ...· Texas Farm Bureau Insurance sponsored

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  • Texas Farm Bureau Insurancesponsored

    Medicare Supplement InsuranceNotes for Agents

    Updated May 1, 2018

    Getting startedAgents Logon to STAR (star.gilsbar.com)

    Every month more than 1,000 Texas Farm Bureau members turn 65 and a Medicare Supplement policy sponsored by Texas Farm Bureau might be exactly what they need!

    Medicare was never designed to pay all health care costs. Medicare is valuable, but, individuals could be responsible for thousands of

    dollars a year out of pocket with deductibles and coinsurance amounts. Whats more, out-of-pocket costs are expected to rise in the coming years to

    accommodate a growing number of seniors who need medical care. Thats why a Medicare Supplement policy sponsored by the Texas Farm Bureau

    Insurance and underwritten by Transamerica Life Insurance Company is so important.

    Agents Logon to STAR (star.gilsbar.com)And then click on the link for

    Transamerica Medicare Supplement Application

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only2 April 9, 2018

  • STAR Logon Information(star.gilsbar.com)

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only3 April 9, 2018

    Rating OptionsTFB Business Issue Age Rated

    Medicare supplement plans are standard for all insurance companies, but companies can choose to price (or rate) their policies in three different ways.

    1. Issue age rated The premium is based on your age when you first buy (issued) the policy. Premiums wont change as your get older.

    2. Attained age rated The premium is based on your current age, so the premium increases as you get older.

    3. Community rated Generally the same premium is charged, regardless of age.

    All three pricing platform can have rate increases due to inflation and other factors (such as the overall experience of everyone in the group or changes in Medicare) and these increases are for all policy holders.

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only4 April 9, 2018

  • OLD TFB Attained-Age Rates(no rate increase in 2018, rates since April 2017)

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only5 April 9, 2018

    Age banded (5 years) Age determined by

    ATTAINED AGE on premium due date

    Highest age band is 80+ (many other companies have annual age increases through age 98)

    Mode of payment Monthly (EFT) Quarterly Semi-annual Annual

    TFB had previously sponsored an Attained-Age policy with 5-year age bands. Attained Age Plan A Plan F Plan N

    Under 65 $361.43 ** **

    65-69 $126.08 $179.47 $133.28

    70-74 $145.29 $208.74 $154.90

    75-79 $157.30 $230.38 $170.51

    80+ $165.71 $246.93 $183.72

    * Paid Endorsement TX

    ** Plans available only to those age 65 and over.

    To calculate rates other than Monthly, multiply the monthly rate by: 3.08 for Quarterly, 6.05 for Semi-Annual, 11.63 for Annual

    Medicare Supplement Plans Monthly Rates

    Current 2018 Rates (no rate increase in 2018, rates since April 2017) ISSUE-AGE Policies

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only6 April 9, 2018

    Rates by ISSUED Age Rate determined by the age of the

    member when the policy is issued.

    The rate by age when the policy is ISSUED is the rate the member will have for the duration of the policy.

    Rates do not increase each year just because you do. You lock-in the rate for your age when your coverage is issued. However, if needed, Transamerica (just like all other carriers) can ask the Texas Department of Insurance for a rate increase. The issued-age rate will only increase for state approved changes that apply to everyone.

    All new policies have a minimum 12 month rate guarantee.

    Mode of payment Monthly (EFT), Quarterly, Semi-annual, or Annual

    ISSUED AGE PLAN A PLAN F PLAN G PLAN NUnder 65 $355.31 ** ** **

    65 $123.35 $177.33 $161.33 $131.6266 $126.20 $181.43 $165.43 $134.6667 $129.05 $185.53 $169.53 $137.7068 $131.90 $189.63 $173.63 $140.7469 $134.75 $193.73 $177.73 $143.7970 $137.61 $197.83 $181.83 $146.8371 $140.46 $201.93 $185.93 $149.8772 $143.31 $206.03 $190.03 $152.9273 $146.16 $210.13 $194.13 $155.9674 $149.01 $214.23 $198.23 $159.0075 $152.58 $219.35 $203.35 $162.8176 $155.43 $223.45 $207.45 $165.8577 $159.00 $228.58 $212.58 $169.6578 $162.56 $233.70 $217.70 $173.4679 $166.13 $238.83 $222.83 $177.2680 $169.69 $243.95 $227.95 $181.0781 $172.54 $248.05 $232.05 $184.1182 $175.39 $252.15 $236.15 $187.1583 $178.25 $256.25 $240.25 $190.2084 $180.39 $259.33 $243.33 $192.48

    85+ $180.39 $259.33 $243.33 $192.48

    Rates are the same regardless of gender or tobacco use.Rates Effective April 1, 2018

    Underwritten by Transamerica Life Insurance Company, Cedar Rapids, IA

  • The Value of Issue Age

    Issue age rates = stability and savings

    Issue age rates are based on your age when you first buy (issued) the Medicare supplement insurance coverage. For example, if you purchase a policy at age 65, it costs less than if you were buying it at age 75. Once you own the policy, the premium will not increase just because you get older.

    It will always be based on your age at the time of purchase with rate adjustments only for state approved rate changes.

    With an attained age policy, your rates will increase as you get older andyou may also have state approved rate changes.

    Issue age pricing can help produce lifetime value by providing rate stability and savings. While issue age rates may be a little more in the beginning, they can be a lot less in the long run. The earlier you enroll the lower the initial rate and the greatest potential for savings over the lifetime of the policy.

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only7 April 9, 2018

    MEDICARE Medicare General Information

    www.medicare.gov 1-800-MEDICARE (1-800-633-4227) Medicare & You Handbook (www.medicare.gov/Pubs/pdf/10050-Medicare-and-You.pdf) Social Security office handles enrollment for Medicare Medicare Basics

    (http://www.medicare.gov/what-medicare-covers/index.html)

    Part A - Hospital - No additional premium(www.medicare.gov/what-medicare-covers/part-a/what-part-a-covers.html)

    Part B - Physician - Additional Premium(www.medicare.gov/what-medicare-covers/part-b/what-medicare-part-b-covers.html)(www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html)

    Part C - Medicare Advantage (like an HMO)(http://www.medicare.gov/sign-up-change-plans/medicare-health-plans/medicare-advantage-plans/how-medicare-advantage-plans-work.html)

    Part D - Drugs - Additional Premium(http://www.medicare.gov/part-d/index.html)

    No premium for Part A if member has worked in Medicare covered employment for 40 quarters, age 65, US citizen and permanent resident of US.

    Many school and hospital systems do not participate in Medicare/SS, so those employees may have to pay premium for Part A.

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only8 April 9, 2018

  • MEDICARE continued

    Medicare Part A Inpatient hospital coverage

    Deductible imposed for each confinement Member co-payment days 61-90 Member pays full payment after day 90

    Medicare Part B Physician and outpatient coverage Deductible per year (2018 is $183) www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html

    Cannot have a Medicare Supplement unless enrolled in both Part A and Part B of Medicare

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only9 April 9, 2018

    How do Medicare eligible members sign up for Medicare Part A, Medicare Part B, and Medicare Part D?

    Your eligible member must call Medicare or visit a Social Security office to sign up for each of the Medicare benefits

    Medicare Part A (Inpatient hospital coverage) For most eligible people, Part A is no additional cost and they should sign up as soon as they

    are eligible at age 65

    Medicare Part B (Physician and outpatient coverage) For most eligible people, Part B is additional cost and deducted from their monthly Social

    Security check. Because many people work past age 65 and have an employer sponsored medical plan, they

    dont need Part B until they stop working. But, when they stop working, and need Part B, they will need to call or visit the Social Security office again.

    Medicare Part D (Prescription Drug Coverage) Part D is additional cost and deducted from their monthly Social Security check. Here are two recommendations for agents with regard to Part D:

    1. When people sign up for Medicare Part B, they should sign up for Medicare Part D at this same time. Medicare is very helpful with Part D and will assist your member in selecting the best available Part D plan that specifically meets their individual prescription drug needs.

    2. Members can ask their pharmacist what they recommend.

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only10 April 9, 2018

  • Medicare Supplement

    Choosing a Medigap Policy (www.medicare.gov/Pubs/pdf/02110-Medicare-Medigap.guide.pdf)

    Med Supp Open Enrollment Period Begins the date you are enrolled in Medicare Part B and age 65

    or older Lasts for 6 months Can purchase any plan offered regardless of health Cannot be denied coverage

    If working beyond age 65 and have health coverage through employer, generally do not want to enroll in Medicare part B until retired because open enrollment period will begin.

    Texas Farm Bureau Proprietary and Confidential for Internal Use Only11 April 9, 2018

    ELIGIBILITY and UNDERWRITING

    Eligibility Must be TFB member Age 65+ Enrolled Medicare Part A and B Not entitled