January 2018 Update

A few updates that you should be aware of, involving the CUL (now Manhattan) dental plan, Mutual of Omaha, Aetna, and Bankers Fidelity. Shortcuts to the Updates: Aetna Expansion Update Bankers Fidelity Update CUL Dental Update Mutual of Omaha Expansion Update Remember for January that you can still get someone out of their Medicare Advantage plan until February 14th. In all reality, until the end of January they can sign up for a Med Supp to start for 2/1 effective date. If approved, they can get a stand-alone Part D plan, which will start on the first of the next month. Must factor in that they must be approved in Underwriting for the Med Supp first before signing up for the Part D. Note: Best practice is to get the Med Supp approval, then have them call Medicare directly for the Part D which will automatically cancel out the MAPD plan they are in. For more info, click here. Aetna Update 2018 Medicare Supplement bonus program Your Medicare Supplement applications could earn you EXTRA CASH during 2018! Between January 1 - December 31, 2018, submit qualifying applications of individual Medicare Supplement* and receive a bonus payout of $100 per underwritten policy and $25 per open enrollment policy issued. The following states are eligible: AL, AR, AZ, FL, GA, IA, ID, IL, IN, KS, KY, LA, MD, MI, MS, NC, NH, NJ, NV, OH, PA, SC, TN, TX, UT, VA, WI**, WY. View complete qualification details here To receive a payout, you must submit a minimum of 4 signed applications within the same month and policies must be issued within 30 days of the signature dates on the applications. Each month, January through December, is counted separately; and you may participate in any or all of those months. Medicare Supplement Launches – Starting February 5, 2018, we will begin offering the following new products: AHLIC Medicare Supplement (Florida) AHLIC Medicare Supplement with 7% household discount (Wisconsin) ACI Medicare Supplement with 7% household discount (Georgia) CLI Medicare Supplement with 7% household discount (Kansas) Hospital Indemnity Flex (Indiana, Louisiana, Missouri, Mississippi, Montana, Ohio, Oklahoma, Pennsylvania, and Tennessee) You will be able to use the E-App tool and order state-specific sales materials on February 5. Until then, both the online rate quote tool and E-App tool will show the old product and rates in these states. Application cut-off for existing products These are the last application signature and submission dates for the following products: AHLIC Medicare Supplement: Georgia, Kansas (March 16, 2018) ACI Medicare Supplement: Florida (February 7, 2018), Wisconsin (March 16, 2018) Hospital Indemnity: Louisiana, Missouri, Mississippi, Montana, Ohio, Oklahoma, Pennsylvania, and Tennessee (May 1, 2018) Competition Comparison Charts: (click to enlarge) Click Here to see the confidential rate comparison NEW Hospital Indemnity Flex Launches – (9 States) – Effective 02.01.18: MS IN TN PA OK OH MT MO LA The following product launches are pending and we should have a launch date soon: AZ – Continental Life brand Individual Medicare Supplement SC – Hospital Indemnity Flex NC – Hospital Indemnity Flex Back to Top of Updates Bankers Fidelity Updates 2019 Update: Massive Rate Increases coming as a result of their very easy past Underwriting guidelines (covered here). Beware. "Bankers Fidelity's 2018 Customer Loyalty Strategy. Our goal for this year is to engage and educate our clients' customer experience through our newly designed Policyholder Portal. The portal will offer a variety of resources to benefit the client, including benefits information, easy access to claims forms, information about our product offerings, and access to a number of brand new loyalty programs. The new portal will offer clients the ability to submit and sign commonly used forms online, further enhancing the user experience. Listed below are the new loyalty partnership programs offered in 2018 through Bankers Fidelity: Active&Fit Direct | Fitness Membership Program Savers Alert | Medical Alert Systems DentalPlans.com | Dental and Vision Savings Through various client surveys and insights, we have hand chosen these new loyalty programs and we have decided to take action to provide the value that is expected of our clients. We have worked hard at vetting the various groups that offer these programs and have negotiated the best cost possible for policyholders that would like to participate. We will continue to offer the Part D drug assessment, prescription discount card, and digital Life SAFE book that are currently available to policyholders, as well as offer the benefits provided through USA MCO. We will begin communicating the launch of the new portal, along with the new loyalty programs, this month through a variety of marketing campaigns. Our Customer Loyalty team will be available to provide education and support regarding each program. Back to Top of Updates Central United Life (Dental), now called Manhattan Life Dental Raising rates on the most popular dental plan, and for new clients, paying the 100% on "Usual and Customary" instead of the old client's policies who still are paid on actual billed charges. Developing: You and your agents will now have 2 DVH links due to the rate increase. States that have approved the rate increase will be under the Dental, Vision and Hearing 2017 link (which will be the majority of the states) and the states that either haven’t approved the increase or in Florida where they didn’t file the increase will be on the old Dental Vision and Hearing link. Here is the new brochure with new rates: DVH17-BR_0118 Sent out January 3rd by Manhattan Life: " Since we launched the Dental, Vision & Hearing product in late 2014 the product has been met with much success, both in the Senior market and the Under 65 market. As we near the four-year anniversary of the product launch we are implementing two changes to the product: A small trend (10%) rate increase, averaging out to under three percent per year since product launch; and We are reverting back to Usual & Customary claim adjudication processing rather than Actual Charges that was implemented in mid-2016. Rate Increase Information for New Business As of this writing, 28 states have approved a 10% rate increase (see attached map); 6 states are pending; North Carolina has denied a rate increase; and One state (New Mexico) will require a new filing with new premium and commission structure. This is effective (where applicable) beginning January 1, 2018. The pricing impact is minimal and our rates remain competitive. For example, an individual in the 55-64 age bracket will pay $31.92 per month with the new rate compared to $29 (with a $1,000 Policy Year Maximum plan). Rate Increase Information for Existing Business It is important to note that a policy inforce less than 12 months will not incur a rate increase until the anniversary date; For existing policyholders, the date of a rate increase depends on various state notification requirements. There are several states that require policyholders receive a 60-day notice and these include Georgia, Mississippi and Wisconsin. As such, a letters were mailed the end of December informing policyholders of the trend increase. An additional 3 states require 45-day notice and these include Louisiana, Montana, South Dakota. These letters will go out in early January. The rate increase is still pending approval in California, Utah, North Carolina and Maryland. Upon approval, the proper notification will be sent. The remaining states have a 30-day notice and these were mailed the last week of December. Usual & Customary Usual & Customary claim adjudication is common in the industry. Our move to actual charges was to streamline customer service and claims; however, to maintain the long-term integrity of the product it is prudent to revert back to U&C. It is important to note that policyholders under an Actual Charges policy will remain with that policy and new policyholders going forward will be issued policies with the appropriate U&C language. Our marketing materials and Manhattan Direct quoting and enrollment platform will be updated as state approvals come in and the website will be changed to reflect the new materials. For groups on a list bill, they too will receive a separate notification with a copy of the letter to the agent. Usual & Customary (U&C) Claims Example Why is U&C claim coverage important? Suppose a client goes to the dentist and receives a bill for $1,000 on a major service. The claim is filed, then Usual & Customary charges for that area are valued at $800. You have the option of two plans that advertise 80% coverage on majors, but are they the same? See below. . Manhattan Life DVH Pays 100% U&C 100% U&C Amount $800 80% Major Coverage $640 Original Bill $1,000 U&C Coverage -$640 Client Owes $360 The Other Guys Pays 75% U&C 75% U&C Amount $600 80% Major Coverage $480 Original Bill $1,000 U&C Coverage -$480 Client Owes $520 Have you examined the "fine print" details of your DVH plan? Take a look at how Manhattan Life stands apart! Back to Top of Updates Mutual of Omaha Updates: Mutual is releasing the new med sup rates in IA, NE, and WV early on February 23rd instead of March 17th since they received approval early. Mutual will also release 12 new dental states on Feb 23rd too. Please review below. IOWA – product is approved Moving from Omaha Insurance Company to United World Life Insurance Company Household Discount will be 12% (same as it is today) Plans A, F, G, N, HDF NEBRASKA – product is approved Moving from Omaha Insurance Company to United World Life Insurance Company Household Discount will be 12% (same as it is today) Plans A, F, G, N, HDF WEST VIRGINIA – product is approved Moving from Omaha Insurance Company to United World Life Insurance Company Household Discount will be 12% (same as it is today) Plans A, F, G, N, HDF As a reminder, the other states are still pending at their respective DOIs – we’re still targeting a March 17th release date (dependent upon state approval). Those pending states are: Colorado Illinois Indiana Kentucky Maryland In addition to these new Med sup states, they are releasing 12 more Dental states for February 23, 2018 as well. Those states are: AK, CT, DC, DE, HI, KS, ME, MT, ND, NH, RI and VT. Here are a few details (Pending): ILLINOIS Moving from Mutual of Omaha Insurance Company to United World Life Insurance Company Household Discount will be 7% (same as it is today) Plans A, F, G, N, HDF MARYLAND Moving from Omaha Insurance Company to United of Omaha Life Insurance Company Household Discount will be 12% (same as it is today) Plans A, F, G, N, HDF Two big Mutual of Omaha Markets. Also, don’t forget about the Broker Bonus Program and the 5 new states that were recently added. Back to Top of Updates

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