I had an agent tell me recently that “United was more generous than Humana because they offered unlimited renewals.” Currently, Humana offers a six-year tail on MAPD and PDP enrollments, which begins with either the “initial” or “replacement sale,” as CMS defines it.
So this got me thinking…Is it really a big advantage to the agent if renewals are committed to by the carrier indefinitely? On the surface I would say yes, but then I did a little research on the longevity of MAPD and PDP membership. Large samples of membership data reveal that over 95% of members either change plans or involuntarily disenroll within a six-year time period. In other words, the chances of seeing any benefit to a plan that promises to pay renewals for life in the Medicare health plan business is window dressing. When comparing the strengths and weaknesses of a carrier, renewals after year six should not be a factor.
