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
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STAR Logon Information(star.gilsbar.com)
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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.
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OLD TFB Attained-Age Rates(no rate increase in 2018, rates since April 2017)
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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
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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.
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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
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.
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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
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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.
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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.
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ELIGIBILITY and UNDERWRITING
Eligibility Must be TFB member Age 65+ Enrolled Medicare Part A and B Not entitled