Medicare Answers: High Deductible Plan F and Guarantee Issue

  • Originally published October 15, 2012 , last updated December 23, 2014
  • Medicare
Medicare Answers: High Deductible Plan F and Guarantee Issue

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This week Roger tackles two questions.

Howard asks,

I have been informed that BCBS PPO will not be available after Dec.31. I have a client who is 74 years old, in good health, a non-smoker and taking no drugs. His wife is 71, in good health and also a non-smoker. We are located in South Dakota. I have been thinking about proposing the Plan F HD as a supplement. The high deductible would not be a problem. What are your thoughts and what would be a reasonable monthly premium?


Blue Cross Blue Shield has announced that they are non-renewing several states with their PPO. Those states include Iowa, Minnesota, Montana, Nebraska, North Dakota and Wyoming. This would be an excellent opportunity if you have clients or know of a prospect who this is happening to; Medicare Supplement would be an excellent choice for them.

Howard asked about High-Deductible F and its premium. For a 71-year-old female around $30 to $40 per month would be reasonable and for the 74-year-old male, $40 to $50.

Greg asks,

What plans pay full commission for a Guarantee Issue situation? The only one I can find is AARP UnitedHealthcare®. Any others you know of that pay full commission even if the client lost their MA-PD that pulled out of the county and are now guarantee issue?


This is a very timely question. Commissions were reduced after the onslaught of the car manufactures and all other United Auto Workers plans discontinued and the retirees were offered a stipend to purchase their own coverage. This occurred about 3 to 4 years ago and naturally this was a Guarantee Issue Situation. Many of these risks were less than healthy and it caused the current rate revolution of today because when the claims started rolling in, companies had to compensate somehow. Making a Guarantee Issue situation less desirable for an agent to write was the answer. Many pay a percentage of 50% to 75% for this business others pay a flat $25.

Greg is correct that UnitedHealthcare® has not done this. American Continental and Continental Life are two others that still pay full commission on GI.

Call 1-877-888-9996 to learn more about these carriers.