The best dogs in the Texas Medicare supplement market are competing for your money. Two competitive carriers have entered the scene and are rising to the top in most Texas zip codes. Cigna, insured by American Retirement Life Insurance Company, and Manhattan Life have recently caught the attention of Texas agents and consumers. With low premiums and fast processing, it’s no wonder these two operators are managing to attract huge amounts of new business and notoriety so quickly.
American Retirement Life Insurance Company, a subsidiary of Cigna, began selling Medicare supplements in Texas in early February 2013. Last year, ARLIC offered highly competitive rates, dramatically improving the Medicare supplement landscape in Texas. Before the Cigna brand, only three companies could offer the lowest premiums: Omaha Insurance, Oxford Life, and Continental Life (Aetna). Each of these carriers have their own zip codes that they pursue competitively. Your chances of getting more than 1 or 2 “good” rates in each zip code were low a year ago. You have Omaha, Oxford or Continental, along with one of the less competitive brands. It was thin pickins.
Now that Cigna has been added to the mix, consumers find better rates as well as more options for selecting a quality provider.
Cigna also offers a quick and easy application process, just like Manhattan Life. Through an electronic application, agents can effortlessly refer new business and save their customers money. New business is usually issued between 3 days and 2 weeks (count with 3-5 day policy issues). Of course, this also depends on what time of year you apply – open enrollment months are inevitably busier.
Due to its cheap rates, Cigna has seen a boom in demand. They are quickly hiring more staff to keep up with the demand for their product. This growth in your company within the first year of activity is extraordinary and can only mean success. If you are a consumer and concerned about the financial prospects of this company, this should assure you that ARLIC’s low rates and Cigna brand are here to stay.
Located in Austin, Texas, ARLIC’s rates are highly competitive for residents of Travis County and surrounding areas. There are also some other “hot” areas, such as zip codes in and around North Texas. If you’re a Medicare Supplement policyholder and live in one of these areas, it may be time to call an agent and have them review your current policy.
ARLIC offers plans A, F, G, and N, which are also available in 18 other states. You can check availability on the ARLIC website.
A more recent addition to the Texas Medicare Supplements marketplace is Manhattan Life. A few months ago, Manhattan Life was not selling in Texas. I was completely unaware of this company, to be honest. Then little by little I started to see his name appear in my listing engine, and now when I look up Texas zip codes, Manhattan Life is definitely top 5 in most areas, even top 2 in some. I suspect this will change (for the better) as they get older next year.
Like Cigna, Manhattan Life is a reputable and financially strong company that is part of a larger family; Central United Life, Western United Life and Family Life are close relatives and trusted brands in the industry.
Along with Texas, Manhattan Life offers Medigap plans in AZ, GA, IL, IN, MI, MS, NC, NE, PA, SC, TN, TX, and VA. Plans available to purchase include A, B, C, D, F, G, M, and N, which offer more breadth than ARLIC (although not all are offered in every state).
Both Cigna and Manhattan Life are leaders in many areas of Texas. While Cigna is still number one of the two, I suspect that Manhattan Life will target more specific niches if it hasn’t already. I also expect both companies to evolve in the coming years, whether that means stabilizing their rates and focusing on specific areas or perhaps, in the case of Manhattan Life, knocking Cigna out of the top spot; only time will tell.
Some consumers have expressed concern about buying a policy from a new company and then having the company do a “bait and switch” by raising rates and leaving their customers stuck with huge premiums. While I won’t guarantee anything, I don’t think it’s a smart technique for either company. Remember, even though their rates are low, they are still competing with the powerhouses that have been selling in Texas for years. It will take 5-10 years for them to gain a solid reputation amidst such dominant competition.
Fortunately for consumers, the appearance of these new products is only driving rates to be more competitive. If you’ve never considered having your policy reviewed, now is the perfect time to call an agent, as carriers are fighting for your business more than ever.