Medicare Supplement Underwriting
I quoted a prospective client a Medicare supplement rate that was significantly less than the plan he was currently on. When I explained that he would have to go through Medicare supplement underwriting and answer some health questions because he was no longer in his Open Enrollment, he wasn’t happy.
Why was he upset? Because he remembered how time-consuming and intrusive it was to apply for life insurance. A nurse came to his home, weighed and measured him, took blood and urine, and asked a bunch of questions. Then, they got reports from the various doctors and a letter about a certain health issue.
The client claimed there was no amount of money that could induce him to go through all again. That’s understandable. However, when I said I could probably do the Medicare supplement underwriting in sixty seconds or less, his tone changed.
How can Medicare supplement underwriting be so simple, though? Let me explain.
Medicare Supplement Underwriting
How is Medicare underwriting defined in Omaha? In short, it’s a simple process used by insurance companies to learn more about you and your health. There’s no need for medical exams or doctor’s visits – all you’re doing is answering a basic set of health questions.
What are the Health Questions for Medicare or Medigap Supplement Underwriting?
The questions can be grouped broadly into four categories:
- Knock-out questions
- Height and weight
- Current health issues
- Smoking status
If you answer “yes” to certain knock-out questions, then you can’t get Medigap or a Medicare Supplement – here’s how it works.
Medigap Underwriting Questions: What Are Knock Out Questions?
They are questions relating to serious medical conditions. If you have this serious medical condition, you are ineligible for a Medicare supplement or “knocked out” of consideration.
To clarify, you can’t be denied Medicare, but a private insurance company can deny coverage for a supplement outside of your Open Enrollment Period.
What are some examples of knock out questions? They vary, but they include:
- Are you currently confined to a wheelchair, nursing facility, or hospital bed?
- Do you currently receive assistance bathing, transferring, toileting, eating, dressing or need the assistance of a walker?
- In the last two years, have you received treatment for cancer, leukemia, heart attack, congestive heart failure, multiple sclerosis, chronic kidney disease, diabetes with hypertension, stroke, etc.?
Why Does Medicare Ask Questions About Height and Weight?
The second category of questions has to do with height and weight. This is always a difficult question. If I asked my wife her weight, it would be very quiet and cold in the Grimmond household for a while. However,height and weight is an important determiner of future health, so it has an impact on price.
What Are Current Medical Issues?
Current issues cover existing medical conditions and related future treatment. For example, you may have a diagnosis for a future treatment, like a knee replacement or cataract surgery.
For Medicare supplement underwriting purposes, you’ll probably need to address these medical issues before you can change supplements or the insurer simply won’t cover that procedure for the first six months.
You may have had respiratory issues in the past that do not exclude you now, but if you are currently being treated for the issue, they could prevent you from getting the supplement for a time.
Why Am I Asked About Smoking Status?
There is plenty of medical evidence about the health risks associated with smoking, which also includes chewing.
I met with a gentleman who described himself as a non-smoker, but when I pointed out he had a circle print on his back jeans pocket, he fessed up that he dipped occasionally. In medical underwriting, even occasional dipping means you’re still considered a tobacco user.
Smoker/Non-smoker is the one health question that can be asked during Open Enrollment.
Medicare Supplement Underwriting is Easy
Why does this matter to you? Because your answers determine whether the insurance company accepts or denies you. It determines your health category and consequently your monthly premium. Underwriting is not a difficult or a daunting task with a skilled insurance agent such as myself. It just takes a few minutes of your time, and you may be able to save yourself some money and maybe improve your coverage as well.
Medicare Supplement Underwriting Omaha Insurance Solutions
The key thing to understand is that not all insurance companies have the same underwriting guidelines. Some may be laxer or more restrictive than others. They may be lenient on one condition or more severe on another. That is when an experienced agent can help you with getting the best outcome for your underwriting. He can guide you to the company that will be most favorable to your condition for the best possible price.
Call OmahaInsuranceSolutions.com 402-614-3389 for help with your Medicare Supplement underwriting in Nebraska