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<ul><li><p>Texas Farm Bureau Insurancesponsored</p><p>Medicare Supplement InsuranceNotes for Agents</p><p>Updated May 1, 2018</p><p>Getting startedAgents Logon to STAR (star.gilsbar.com)</p><p> 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!</p><p> Medicare was never designed to pay all health care costs. Medicare is valuable, but, individuals could be responsible for thousands of </p><p>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 </p><p>accommodate a growing number of seniors who need medical care. Thats why a Medicare Supplement policy sponsored by the Texas Farm Bureau </p><p>Insurance and underwritten by Transamerica Life Insurance Company is so important.</p><p>Agents Logon to STAR (star.gilsbar.com)And then click on the link for </p><p>Transamerica Medicare Supplement Application</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only2 April 9, 2018</p></li><li><p>STAR Logon Information(star.gilsbar.com)</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only3 April 9, 2018</p><p>Rating OptionsTFB Business Issue Age Rated</p><p>Medicare supplement plans are standard for all insurance companies, but companies can choose to price (or rate) their policies in three different ways.</p><p>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.</p><p>2. Attained age rated The premium is based on your current age, so the premium increases as you get older.</p><p>3. Community rated Generally the same premium is charged, regardless of age. </p><p>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. </p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only4 April 9, 2018</p></li><li><p>OLD TFB Attained-Age Rates(no rate increase in 2018, rates since April 2017)</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only5 April 9, 2018</p><p>Age banded (5 years) Age determined by </p><p>ATTAINED AGE on premium due date</p><p> Highest age band is 80+ (many other companies have annual age increases through age 98)</p><p>Mode of payment Monthly (EFT) Quarterly Semi-annual Annual</p><p>TFB had previously sponsored an Attained-Age policy with 5-year age bands. Attained Age Plan A Plan F Plan N</p><p>Under 65 $361.43 ** **</p><p>65-69 $126.08 $179.47 $133.28</p><p>70-74 $145.29 $208.74 $154.90</p><p>75-79 $157.30 $230.38 $170.51</p><p>80+ $165.71 $246.93 $183.72</p><p>* Paid Endorsement TX</p><p>** Plans available only to those age 65 and over.</p><p>To calculate rates other than Monthly, multiply the monthly rate by: 3.08 for Quarterly, 6.05 for Semi-Annual, 11.63 for Annual</p><p>Medicare Supplement Plans Monthly Rates</p><p>Current 2018 Rates (no rate increase in 2018, rates since April 2017) ISSUE-AGE Policies</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only6 April 9, 2018</p><p>Rates by ISSUED Age Rate determined by the age of the </p><p>member when the policy is issued.</p><p> The rate by age when the policy is ISSUED is the rate the member will have for the duration of the policy.</p><p> 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.</p><p> All new policies have a minimum 12 month rate guarantee.</p><p>Mode of payment Monthly (EFT), Quarterly, Semi-annual, or Annual</p><p>ISSUED AGE PLAN A PLAN F PLAN G PLAN NUnder 65 $355.31 ** ** **</p><p>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</p><p>85+ $180.39 $259.33 $243.33 $192.48</p><p>Rates are the same regardless of gender or tobacco use.Rates Effective April 1, 2018</p><p>Underwritten by Transamerica Life Insurance Company, Cedar Rapids, IA</p></li><li><p>The Value of Issue Age</p><p>Issue age rates = stability and savings</p><p>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. </p><p>It will always be based on your age at the time of purchase with rate adjustments only for state approved rate changes.</p><p>With an attained age policy, your rates will increase as you get older andyou may also have state approved rate changes.</p><p>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.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only7 April 9, 2018</p><p>MEDICARE Medicare General Information</p><p> www.medicare.gov 1-800-MEDICARE (1-800-633-4227) Medicare &amp; You Handbook (www.medicare.gov/Pubs/pdf/10050-Medicare-and-You.pdf) Social Security office handles enrollment for Medicare Medicare Basics</p><p>(http://www.medicare.gov/what-medicare-covers/index.html)</p><p> Part A - Hospital - No additional premium(www.medicare.gov/what-medicare-covers/part-a/what-part-a-covers.html)</p><p> 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)</p><p> 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)</p><p> Part D - Drugs - Additional Premium(http://www.medicare.gov/part-d/index.html)</p><p> 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. </p><p> Many school and hospital systems do not participate in Medicare/SS, so those employees may have to pay premium for Part A.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only8 April 9, 2018</p></li><li><p>MEDICARE continued</p><p> Medicare Part A Inpatient hospital coverage</p><p> Deductible imposed for each confinement Member co-payment days 61-90 Member pays full payment after day 90</p><p> 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</p><p> Cannot have a Medicare Supplement unless enrolled in both Part A and Part B of Medicare</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only9 April 9, 2018</p><p>How do Medicare eligible members sign up for Medicare Part A, Medicare Part B, and Medicare Part D?</p><p> Your eligible member must call Medicare or visit a Social Security office to sign up for each of the Medicare benefits</p><p> 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 </p><p>are eligible at age 65</p><p> Medicare Part B (Physician and outpatient coverage) For most eligible people, Part B is additional cost and deducted from their monthly Social </p><p>Security check. Because many people work past age 65 and have an employer sponsored medical plan, they </p><p>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.</p><p> 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:</p><p>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.</p><p>2. Members can ask their pharmacist what they recommend.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only10 April 9, 2018</p></li><li><p>Medicare Supplement</p><p> Choosing a Medigap Policy (www.medicare.gov/Pubs/pdf/02110-Medicare-Medigap.guide.pdf)</p><p> Med Supp Open Enrollment Period Begins the date you are enrolled in Medicare Part B and age 65 </p><p>or older Lasts for 6 months Can purchase any plan offered regardless of health Cannot be denied coverage</p><p> 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.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only11 April 9, 2018</p><p>ELIGIBILITY and UNDERWRITING</p><p>Eligibility Must be TFB member Age 65+ Enrolled Medicare Part A and B Not entitled to Medicaid</p><p> All Medicare Supplement policies have the same benefits and only differ in premium, quality of the insurance company, and the quality of service.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only12 April 9, 2018Texas Farm Bureau Proprietary and Confidential for Internal Use Only 12</p><p>Underwriting Guaranteed Issue (No underwriting)</p><p> If Medicare Part B effective date is within 6 month window of enrolling in Medicare Part B.</p><p> Change plans during 6 month window</p><p> Lost employer coverage and 65+</p><p> Underwriting required If not within 6 month window Upgrade med supp plan and not </p><p>within 6 month window</p></li><li><p>Reminders regarding Open Enrollment</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only13 April 9, 2018Texas Farm Bureau Proprietary and Confidential for Internal Use Only 13</p><p>OpenEnrollmentforStandardMedicareSupplementforpeoplewithOriginalMedicarePartAandOriginalMedicarePartB</p><p>RegardingAnnualOpenEnrollmentforMedicarePartCand/orMedicarePartD</p><p>*MedicareSupplement(akaMedigap)OpenEnrollmentPeriodBeginsthedateyouareenrolledinMedicarePartBandage65orolderLastsfor6monthsCanpurchaseanyplanofferedregardlessofhealthCannotbedeniedcoverage*Ifworkingbeyondage65andhavehealthcoveragethroughemployer,generallydonotwanttoenrollinMedicarepartBuntilretiredbecauseopenenrollmentperiodwillbegin.</p><p>DoesthisAnnualOpenEnrollmentapplytoastandardMedicareSupplementPlan?*No.TheOpenEnrollmentperiodforastandardMedicareSupplementpolicyisthe6monthwindowaroundage65andsigningupforMedicarePartB.PeoplecanmoveatanytimeduringtheyearfromonestandardMedSuppcompanytoanotherwithunderwriting.(notrestrictedtoOctober15Dec7).*Medicare PartCMedicareAdvantagePlansBetweenOctober15December7anyonecanjoin,switch,ordropaMedicareAdvantagePlan.Thisopenenrollmentperiodhaschangedtogivemoretimetochooseandjoinaplan.YourcoveragewillbeginonJanuary1,aslongastheplangetsyourrequestbyDecember7.*Medicare PartDMedicareDrugCoveragePlansBetweenOctober15December7,anyonecanjoin,switch,ordropaMedicaredrugplan.ThechangewilltakeeffectonJanuary1aslongastheplangetsyourrequestbyDecember7.</p><p>BASIC BENEFITS</p><p> All Med Supp plans cover Basic Benefits Hospitalization</p><p> Covers Part A coinsurance plus coverage for additional 365 days after Medicare benefits end</p><p> Medical Expenses Covers Part B coinsurance</p><p> Blood Covers first 3 pints of blood annually</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only14 April 9, 2018</p></li><li><p>GENERAL INFO 30 day free look Only 1 Med Supp can be in force at a time Replacement</p><p> Must be less expensive or more benefits offered Application required</p><p> Conversion privilege If policyholder cancels policy, covered persons can convert to an </p><p>individual policy. Must apply within 31 days after insurance under previous policy </p><p>ends Benefits provided by individual policy will be same as those </p><p>provided by previous policy. Insured can choose any physician who accepts assignment</p><p> No Networks and no referrals needed</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only15 April 9, 2018</p><p>PRE-EXISTING CONDITION LIMITATION</p><p> No Pre-x if member enrolls during open enrollment period.</p><p> If policy replaces creditable coverage such as an in force Med Supp or primary hospital and medical insurance that has been in force within the past 63 days, then the pre-ex condition limitation will be waived (no pre-x) to the extent it was satisfied under the prior creditable coverage.</p><p> If not during open enrollment or replacing other coverage, no benefits paid for first 6 months following effective date of coverage. After that, no pre-x.</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only16 April 9, 2018</p></li><li><p>KEY POINTS SELLING MED SUPP Freedom of choosing your own doctors and hospitals No networks and no referrals needed.</p><p> No waiting periods for pre-existing conditions Hassle-free claims processing Excellent service from a company with an A+ (Superior) </p><p>A.M. Best rating for financial stability. Financial stability of Transamerica no difference in policies offered </p><p>among companies Apply today for the peace of mind you want, at affordable Texas Farm </p><p>Bureau member rates. Do you already have other insurance on member? Most </p><p>people prefer keeping insurance all in one place. Local, personal service provided Send pre-approach letters to your clients who will be </p><p>turning 65. Value of an Issue-Age policy</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only17 April 9, 2018</p><p>Medigap 2018 PlansIf a check mark appears in a column of this chart, the Medigap policy covers 100% of the described benefit. If a row lists a percentage, the policy covers that percentage of the described benefit. If a row is blank, the policy doesnt cover that benefit. Note: The Medigap policy covers coinsurance only after you have paid the deductible (unless the Medigap policy also covers the deductible).</p><p>Texas Farm Bureau Proprietary and Confidential for Internal Use Only18 April 9, 2018</p><p>* Plan F also offers a high-deductible plan. If you choose this option, this means you must pay for Medicare-covered costs up to the deductible amount of $2,180 in 2018 before your Medigap plan pays anything. </p><p>** Plans K &amp; L After you meet your out-of-pocket yearly limit and your yearly Part B deductible ($183 in 2018), the Medigap plan pays 100% of covered services for the rest of the calendar year.</p><p>*** Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits and up to a $50 copayment for emergency room visits that dont result in an inpatient admission.</p><p>$5,120 $2,560</p></li><li><p>PLAN A</p><p> Basic Benefits Only policy offered to members u...</p></li></ul>


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