Mutual of Omaha has announced underwriting changes to their Plan N Medicare Supplements. This will affect all Mutual of Omaha companies including United World and United of Omaha. Exceptions will include New York, where health questions may not be asked (per state regulations) and in open enrollment or other guarantee issue situations where health questions normally do not apply.
New Applications
The underwriting changes will also bring about new applications. Where the new applications are already approved, the new underwriting guidelines will be effective with applications signed on or after February 16th 2011. The states are where the new applications have already been approved are:
United World: AL, MD, MN, MT, ND, NJ, NM, PA, UT & WY
United of Omaha: AR, AZ, GA, IA, ID, IL, IN, KY, LA, MI, MO, MS, NC, NH, OH, OK, OR, SC, TN, TX, VA, WV & WI
Commission Changes
This change will also affect commissions on Plans M and N. Mutual of Omaha will have new commission schedules available shortly, but you can expect commissions on all plans to be uniform.
Here is a link to the announcement from Mutual of Omaha and more detailed information.
Even with these changes, Mutual of Omaha will continue be a leader in the Medicare Supplement marketplace. That being said, this will open up many new doors to other Medicare Supplement companies that want to offer guarantee issue or limited underwriting plans.
Now the question is where do you put your clients who have health issues? Do you wait until the Medicare Advantage AEP and put them in a plan then? Or perhaps look for other Medicare Supplement companies with more lenient underwriting?
One thing is for sure, it is important for agents to keep up with as many carriers as possible with the ever-changing Medicare market. The slightest difference in underwriting can mean a declined or approved application for your client.
If you have any questions regarding Mutual’s changes, please feel free to contact us or reply below.
