American Family Life Assurance Company of Columbus, more commonly known as Aflac, has decided to discontinue all sales of Medicare Supplement Insurance in California, and the rest of the nation, less than one year after entering this highly competitive segment of the senior market.
An internal memo from AIMC (the marketing arm for Aflac as well as other Medicare Insurance companies) was emailed today to AIMC agents appointed with Aflac which stated: "In October 2012, Aflac and AIMC agreed to begin selling Medicare Supplement policies. After careful consideration of the results to date, Aflac has decided to discontinue Aflac Medicare Supplement sales."
Laura Kane, Vice President of Corporate Communications for Aflac, quickly responded to several questions I had as an agent appointed with Aflac regarding this decision. "We will continue paying commissions and accepting applications until September 27th ... There is no change to existing policy or benefits. All claims will be administered according to policy provisions."
This is good news for both current clients and potential new clients whose applications are received within the next two business weeks. Aflac maintains a solid A+ rating with A.M.Best and certainly has both the strength and integrity to honor their written contractual agreements.
Regarding a possible new venture with another marketing company beside AIMC, Ms. Kane clarified: "Aflac does not currently have any plans to pursue medicare supplement business in the future."
If you or a loved one are currently in the market for Medicare Supplement Insurance, consider my company's website: MedicareOpenEnrollment.com. This site is Christian-owned, based in the San Diego area, and unlike much of the competition, does not require residents of California, Texas, New Mexico, Nevada, and Arizona to divulge private information (email, address, phone number) in order to run free online quotes.
Seniors age 65+ who currently have Medicare Supplement Insurance through Aflac (also known as Medigap policies) are free to replace their current policy with a new one from another company anytime they can pass through the new company's underwriting process.
Within the state of California, seniors seeking to replace their current Medigap policy, who might normally be turned down by underwriting, may take advantage of the "Birthday Rule." This law prevents an insurance company from denying coverage due to poor health for 30 days each year following a current Medigap policy holder's birthday; however, the new Medigap policy must offer either the same or fewer benefits. Upgrades are not allowed.