New Medicare Supplement Contest in Texas

The best in the Texas Medicare supplement market are running out of 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 been getting the attention of Texas agents and consumers lately. 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. In the past year, ARLIC has delivered highly competitive rates, dramatically improving the Texas Medicare Supplement landscape. Before the Cigna brand, only three companies could offer the lowest premiums: Omaha Insurance, Oxford Life, and Continental Life (Aetna). Each of these carriers has 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. They were thin peaks.

Now that Cigna has been added to the mix, consumers are finding better rates, as well as more options for selecting a quality carrier.

Cigna also offers a quick and easy application process, as does Manhattan Life. Through an electronic application, agents can effortlessly present new business and save their clients money. New business is generally issued within 3 days to 2 weeks (they feature 3-5 day policy issues). Of course, this also depends on the time of year the application is submitted; open enrollment months are busier, inevitably.

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 concerned about the financial prospects of this company, this should assure you that ARLIC’s low fees and the 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 are a Medicare supplement policy holder and live in one of these areas, it may be time to call an agent and have your current policy reviewed.

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 Supplement market is Manhattan Life. A few months ago, Manhattan Life was not for sale in Texas. To be frank, I was completely unaware of this company. Then slowly I started to see his name appear in my quote engine, and now when I search for Texas ZIP codes, Manhattan Life is definitely the top 5 in most areas, even the top 2 in some. I suspect this will change (for the better) as they get older next year.

Like Cigna, Manhattan Life is a financially sound and trusted service provider, part of a larger family; Central United Life, Western United Life and Family Life are close and trusted family 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 for 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 Manhattan Life will target more specific niches if it hasn’t already. I also expect both companies to evolve in the coming years, whether this means stabilizing their rates and focusing on specific areas or perhaps in the case of Manhattan Life, taking Cigna out of the top spot; only time will tell.

Some consumers have expressed concern about buying a policy from a new carrier and then making the carrier go “bait and switch” by raising rates and leaving their customers trapped with large 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 still compete with the powerhouses that have been selling in Texas for years. It will take 5-10 years for them to earn a solid reputation amid such dominant competition.

Fortunately for consumers, the emergence 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 operators are fighting for your business more than ever.