Philadelphia American Life Insurance

 

Medicare Supplement Plans
Russell Noga

I write a lot of articles and create just as many videos about Medicare supplement insurance, including the companies that offer these plans.

This is because I want to give you as much information as possible about each of them.

In this article, however, I’ll be talking about one of my favorite companies that I’m proud to say i’ve represented over the last decade.

I have too many clients to mention enrolled with this carrier, and they’re one of the best in the business.

What’s funny is that they are probably the best company that you may not ever have heard of.

This company is Philadelphia American Life Insurance or New Era Medicare supplement.

Philadelphia American life insurance

 

This company is well known for its extremely low premiums, and most especially for their incredibly low rate increases every year.

Now, you may see that I did in fact mentioned two different company names. Like most insurance carriers in this industry, New Era has several different company names within the parent company.

New era Life Insurance is in fact the parent company based in Houston, TX.  Philadelphia American Life Insurance is one of those companies in their family.

Depending on which state you are eating, you might also see their other company which is named a new era Life Insurance Company of the Midwest.

Although this company has been around since 1924, new management took over in the late eighties.  The name of their CEO is Dr. Bill Chen, and one of the most highly respected actuarial experts in the industry.  In fact, he’s the primary reason why they keep their premiums and rate increase is so low.

New Era is focused on their clients in every way.

What does this mean?

Well, one thing it means is that they don’t pay their agents a lot of commission!

In fact, that’s probably the main reason you’d haven’t heard of them before.  Many agents do not want to write them because they don’t get paid as much.

However it’s not about them, it’s about you.  This is why we have been writing them for 11 years and don’t plan on stopping regardless of how much they pay us.

As I mentioned they have some of the lowest premiums of any company in the in the industry in the states they are in.

 

 

Household Discount

 

They also offer a household discount of 6% if two people the household are applying at the same time.

However, even without this discount, they beat almost everybody in terms of premiums and low rate increases wherever they are offered.

 

Medicare supplement rate increases

 

How do they maintain such low rate increases?  Well as I mentioned, the page and slower condition.  They also do not spend a lot of money on advertising, in fact, you almost never see them advertised anywhere.

But there is one other big reason why they are able to keep their rate increases so low.

Medicare Supplement Plans

 

Medicare supplement underwriting

 

Anyone just turning 65 and coming onto Medicare, or those who are any age but just enrolling in part B Medicare for the first time, are in what is called an “open enrollment period.”

This means regardless of any health conditions, you are allowed to enroll in any Medicare supplement plan offered by any insurance company with no medical questions asked.

You simply choose the plan letter you want, we help you enroll, and they roll out the red carpet for you.

 

Medicare Supplement Plans

Medicare Supplement Plans 2018

 

But if somebody already has a Medicare supplement plan and wishes to take advantage of Philadelphia American’s great low rates, they must answer the medical questions on the application and go for medical underwriting.

Medicare Supplement PlansThis is the approval process based on someone’s current health conditions.

Well, New Era has some of the strictest underwriting guidelines of any company in the industry.

Don’t get me wrong, we get people approved all the time with them.

They’re just more stringent on their guidelines than other companies such as Mutual of Omaha, and Aetna.

 

How does this affect the rate increases?

 

Medicare Supplement PlansRate increases are determined each year by the number of claims being paid out of the group you’re in, compared to the number of new premiums coming in.

New Era and Philadelphia American require a higher set of health standards to be in their group.

This typically results in lower health claims due to healthier people, and thus lower rate increases each year.

Now there’s no guarantee what the company’s rate increases will be each year, and by no means am I claiming they will always be the lowest.

What I am saying is, there is only one logical way to continue to shop for Medicare supplement insurance each year.

We use the information that we have presently, combined with our many years in the industry, as well as the variables that we know the companies have to determine what we believe is the best choice for people.

That’s the only way to do it. Everything else is pure speculation.

Based on that at least, your odds of maintaining some of the lowest rate increases are far better with a company like Philadelphia American.

We check the rates for clients each year to make sure they’re always paying the least amount possible, and of course, we even do that with our clients who are already with Philadelphia American.

However, I will say that it is extremely rare that we ever move many of them quite honestly.  Their rate increases are that low.

medicare supplement plans

 

Philadelphia American Medicare supplement plans

 

The most popular plans that Philadelphia American and New Era offer are:

  • Medicare supplement plan G
  • Medicare supplement plan N
  • Medicare supplement plan F

 

Medicare Supplement Plans

 

Medicare Supplement Plan G

 

Medicare plan G is now the most comprehensive plan offered to seniors just turning 65 or enrolling in part B Medicare.  This is because plan F was removed from the lineup on January 1st of 2020.

If you didn’t get a plan F, don’t worry you didn’t miss out.  The plan is far too expensive for too little of a benefit over plan G.

With Medicare Plan G you must pay the annual part B deductible before Medicare and plan G pick up 100% of medical bills for the rest of the year.

It’s outstanding coverage with only that one small out-of-pocket expense.

In the year 2021, this deductible is $203.

If you kept your Medicare plan F, you are likely paying $300 or $400 extra per year just to get the $198 benefit, with the plan paying the Medicare part B deductible for you.

Sounds like a lot of money for nothing in my opinion!  This is why we haven’t suggested plan F even before it went away.

If you still have a Medicare plan F, then by all means please let us check the premiums for you for Medicare supplement plan G with Philadelphia American or any other company in your state.

The savings could be substantial!

 

Medicare supplement plan N

 

Another great plan offered by Philadelphia American and New Era is Medicare plan Medicare Plan NN.  With Plan N you still pay the part B deductible each year just like you do on plan G.

However, after this deductible is met with plan N, you might have a small co-pay of up to $20.00 per doctor’s visit.

Also on plan N, if you visit the emergency room and you’re not admitted there is a $50.00 co-pay.  Plan N also does not cover part B excess charges.

Anyone who is in relatively good health and doesn’t visit the doctor often should check out Medicare plan N as a great option.

 

How to Enroll

 

After a decade in this business, I’ve seen many Medigap Insurance companies come and go.  It’s very difficult for them to maintain a competitive premium and keep a rate increase is low.

No one in the industry has done a better job than Philadelphia American, and I recommend them every chance I get for clients.

I’m highly recommending them for you too!  Give us a call today so we can shop the rates in your area to see if Philadelphia American Life Insurance Company is the best option for you.

We can start your coverage today.

Call us now!

 

Medicare Supplement Plans