Greats news for Tennessee Medicare supplements! Effective March 17, 2012 Mutual of Omaha will release a brand new Tennessee Medicare supplement. A 7% household discount applies to all policies.
This will open up a new “block of business” in Tennessee and allow seniors to enjoy some of the most competitive rates.
Compare Medigap Plans has been selling Mutual of Omaha Medicare supplements for many years. I want to address recent concerns regarding rate increases with Mutual of Omaha.
It is true that Mutual has had 15% plus rate increases in many states across the country this year. However, I feel confident that they have taken steps to offer a Medicare supplement policy that will sustain competitive rates over the years.
I still remember the first time I sold a Mutual of Omaha Medicare supplement. At the time, their Plan F rates were 20% under most companies. Meaning, a Plan F for someone 65 years old was 85 dollars versus $105 plus with most other companies. For the first few years, the rate increases were very reasonable.
It might seem bad to get a 15% increase but you have to remember your beginning rate. If you were already 20% under most insurance companies it stands to reason that the Mutual plans are still very competitive even with a 15% in a given year.
Remember, that virtually all Medicare supplement companies pass along a rate increase annually. People usually start getting upset when they see 15% increases. If this has happen to you before, I urge you to look at your beginning rate and see how much money you saved over the years before getting a big increase.
For example, let’s say that Mrs. Jones bought a Medicare supplement with Acme insurance for 122.00 per month but did not know that she could have bought a Mutual of Omaha Medicare supplement for 85.00. Mrs. Jones could have recognized a $444.00 dollar per year savings.
Remember, nobody really knows what the annual rate increase will be for any insurance company. At the end of the day, Mutual of Omaha is a A+ rated company that is over 100 years old and strives to do what is right for their Medicare supplement customers.