how much can you make selling medicare supplements

Luke Hockaday, Director of Medicare Supplement

Sales, explains: "If you're selling supplements, you don’t make very much – maybe, on average, $250/year per policy. But you make that same amount for six years (depending on your state), so it takes a lot of sales. The longer you're in it, the more they stack on top of each other," he says.

Full Answer

How to sell Medicare supplements?

Learning how to sell Medicare Supplements all starts with finding a sales system to replicate. There is no reason to try to reinvent the wheel! Determine if you want to do this all on your own or with a team.

Is it worth it to sell Medicare?

Selling Medicare is a rewarding opportunity where you get to help seniors understand their healthcare options, and make a generous commission while you’re at it. Continue reading for our step-by-step guide on selling Medicare. How much money can you make selling Medicare? How much can you make Selling Medicare?

Can you make a six-figure salary from Medicare supplement sales?

With the right training, tips, and effort, it’s reasonable to say that you could be making a six-figure annual salary from Medicare Supplement sales alone after just a few years! Our guide covers the sales tools that can help you work efficiently (free access links included!), expand your client base, and turn a bigger profit.

How do agents get paid for selling Medicare plans?

Agents selling Medicare Advantage and Part D plans get a flat dollar amount of money per application. This comes to them in the form of initial commissions and renewal commissions. Carriers pay out initial commissions when an agent makes a new sale or when the beneficiary enrolls in a new, “unlike” plan (different type).

Can you make good money selling Medicare?

Earning income potential is dependent on sales commissions, talent and location. On average, medicare sales agent jobs pay around ​$65,000​ annually, but top agents can earn six-figure incomes in just three years, suggests Redbird Network.

What is the commission for Medicare Supplements?

A recent report indicates that first-year commissions for enrollments in Medigap are approximately 20 percent of annual premiums, but they can vary based on the state or plan type. The commission for subsequent years (i.e., the renewal commission) is set at 10 percent of the premium.

Is selling Medicare hard?

No, it's not hard to sell Medicare Supplements. When you're first starting, it should be easy, because everyone on Medicare needs one. It's just an insurance product. You're not a member – you're a policyholder, and that means a lot to people.

Is it worth it to sell Medicare?

When you consider that approximately 10,000 people will turn 65 every day for the next 13 years, one thing becomes clear: it's definitely worth your time to sell to the senior market. If you're a health insurance agent who's not selling Medicare products, you should consider doing so.

What is the Medicare commissions for 2022?

For 2022, the initial MA commissions increased from $370 to $394. This represents a 6.5 percent increase. Renewal commissions for Puerto Rico and the Virgin Islands increased from $185 to $197.

What is street level commission?

Street level commission is the base commission amount paid by the company you work for. This is normally expressed as "base commission" or "street level commission" on the rate sheet you receive from your insurance company or General Agent.

How do I get Medicare clients?

⍟ 14 Ways to Generate Medicare Supplement LeadsBuild & Maintain a Website. ... Social Media Presence. ... Video Marketing. ... Blogging, Writing Articles. ... Email. ... Online Events: Live webinars, podcasts. ... Direct Requests / Client Referrals. ... Lead Swapping Partnerships (Asking other professionals for referrals)More items...

Is Medicare a good business?

Is Selling Medicare Lucrative? In short, yes. The average Medicare Advantage policy pays around $287 a year in commission if the purchase replaces an existing plan. However, you can get approximately double that — $573— if you write up a new Medicare Advantage plan for someone who hasn't had one before.

Can you sell Medicare door to door?

MA/PD PLANS May not market to beneficiaries door to door, including leaving materials at a beneficiary's doorstep. May call a beneficiary they enrolled in a plan to discuss plan business, as well as discuss the availability of other plan options/types within the same parent organization.

What are the three main ways in which Medicare sales occur?

There are three different types of Medicare products sold by agents and brokers: Medicare Supplement plans (Also called Medigap plans), Medicare Advantage plans and Medicare Part D Rx plans.

Can you sell life insurance and Medicare at the same time?

Under CMS guidelines, brokers are not permitted to cross-sell nonhealth-related products during a Medicare Advantage or Part D sale. So, anything that is not a health-related product, such as life insurance policies or annuities, cannot be cross-sold during a Medicare sale.

What is one CMS marketing rule that impacts how Medicare insurance plans market to consumers?

Marketing Rules CMS also regulates marketing and plan presentations, including when you're allowed to market, and how you market. Agents must wait until October 1 to begin marketing next year's plans to potential beneficiaries and cannot enroll members until October 15.

How much can you make Selling Medicare?

Selling Medicare is part of the financial services industry, which has a track record of generating more millionaires than any other industry.

Get Licensed to Sell Medicare

In order to sell Medicare, you must become a licensed life and health insurance agent in your state (or any state that you plan on selling in).

Partner with a Medicare FMO

A Field Marketing Organization (FMO) is the link between Medicare insurance carriers and independent Medicare sales agents.

Complete AHIP & Carrier Certifications

AHIP (America’s Health Insurance Plans) is an industry-recognized certification test. If you want to sell Medicare Advantage products, then you must become AHIP certified for most carriers.

Prepare for Success

Now that you are licensed, contracted, and certified, it’s time to create your Medicare Business Plan. This includes setting your production goals, developing a lead generation and client retention strategy, and leveraging the support available through your Medicare FMO.

What does it take to earn $30,720 per year selling Medicare Supplement Insurance Plans?

Mail 2,000 direct mail cards monthly with an average 1.5% response, you have 30 exclusive Medicare Supplement leads each month.

What is Medicare Supplement insurance?

Original Medicare Part A & B + Medicare Supplement + Part D. Medicare Supplement insurance is also referred to as a Medigap policy by CMS. These names are interchangeable. Your client should expect to pay monthly premiums for Original Medicare Part B, their Supplement and their Part D drug plan.

How long does Medicare Supplement pay commission?

Here are the two most important things you need to know about Medicare Supplement commissions. Medicare Supplements pay the same commission for seven years.

What is the confusing part about Medicare Advantage?

The confusing part about Medicare Advantage is that client’s often think if they have a Medicare Advantage plan, that they no longer have Medicare.

How long does Medicare Part B last?

Your clients IEP begins 3 months before the month they turn 65, their birth month and ends 3 months after. Below are some common examples of Medicare Part B covered services: Doctor’s visits. Ambulance services.

What is Medicare Part C?

Medicare Part C is commonly known as Medicare Advantage (MA plans), and is offered in the common forms of an HMO or PPO plan from private insurance companies approved by Medicare. This means that those who choose a Medicare Advantage plan are subject to using the doctors listed in the associated HMO (requires referral) or PPO (referrals NOT required) networks.

What happens if you don't enroll in Medicare Part D?

If your client doesn’t enroll in Part D on time, a penalty will be added to their premium moving forward. Penalties are waived in instances that your client has existing credible coverage.

Why Medicare Supplement Sales?

There are a ton of prospects in the Medicare market. Ten thousand seniors turn 65 every single day – that's a lot of prospects that need Medicare Supplements.

How much does Medicare cover?

Medicare Supplements are standardized. No networks. Medicare covers about 80% , and the supplement covers about 20%. Here are the two plans I'd recommend for you, and here's how they work.

What is the Medicare Part B deductible for 2021?

When you have a Plan G, everything is covered except the Medicare Part B deductible, which is $203 in 2021. There are no other costs – it’s 100% coverage from there.

How long is Medicare open enrollment?

Your Medicare Supplement open enrollment period is a 6-month window starting on your Part B effective date.

How many seniors turn 65 every day?

There are a ton of prospects in the Medicare market. Ten thousand seniors turn 65 every single day – that's a lot of prospects that need Medicare Supplements. When we look at a person that is going onto Medicare, it's pretty confusing and overwhelming. Seniors get a ton of Medicare-related mail.

Does Medicare Supplements include prescription drug insurance?

Medicare Supplements helps with doctor and hospital costs only – it does not include prescription drug insurance. CMS puts out a publication each year called the Medicare & You Handbook. In the 2019 version, you can refer to pages 69-72 while explaining Medicare Supplements to clients and prospects.

Does Plan F pay Medicare?

Finally, Plan F is considered the “Cadillac.” It pays everything after Medicare – it’s that simple. No copays, no deductibles.

How to maximize compensation?

Maintaining strong client relationships is the key to maximizing your compensation. People are much more willing to buy from someone they know and trust. Follow up with your clients and use a CRM to document every interaction in order to make sales tracking more efficient. You can sell additional items in your follow-up appointments depending on the time of year and what type of plan your client has. One caveat is that CMS won’t let you sell a product your client hasn’t already agreed to talk about.

Can you sell Medigap plans?

Commissions for selling Medigap plans vary from carrier to carrier. It may sound confusing, but it works in your favor to partner with a great FMO that can connect you to many different carriers. You want to provide your clients with the plans that can offer the most benefit, and provide yourself with opportunities to earn more.

Can you make a lot of money on Medicare Advantage 2020?

The Centers for Medicare and Medicaid (CMS) raised the maximum Medicare agent commissions for Medicare Part D and Medicare Advantage plans for the fifth year in a row. That means you can make a lot of money on Medicare commissions during AEP 2020. While carriers are not required to pay the maximum, they usually don’t pay much less, because they want you to sell their products.

Do you get commission on Medicare Advantage?

Your Medicare Advantage clients may have to wait for the AEP to make changes to their existing plans or enroll in new policies, but you still get the commission if clients make changes during your meetings. That makes strong client relationships and following up even more important. A year is enough time to forget about someone, and you want your clients to remember you and the excellent customer service you provide.

How much does Medicare Part A cost?

Medicare Part A is earned, but it can also be bought for those who need it. In 2019, it cost up to $413 a month to buy Medicare Part A. Gaps in Medicare Part A can easily cost thousands of dollars. Included in Medicare Part A: home health services, hospice care, inpatient hospital care, nursing facility care and more.

How much is the Medicare Part B deductible?

This penalty can be waived if your client has coverage with an employer. The Medicare Part B deductible was $183 in 2017. Your client will pay that much out-of-pocket before Medicare begins to cover services. After coverage beings, the client is responsible for 20% of doctor visits and other approved Medicare services.

What is the difference between Medicare Part D and Medicare Part B?

Medicare Part D. Medicare Part D covers prescription drugs and has a monthly premium. Like Medicare Part B, there is a penalty for late enrollment unless your client has an existing health insurance plan. Your client may have several Part D plans offered.

What is Medicare Part B?

2. Medicare Part B. Medicare Part B covers some of the most essential types of medical expenses. A client begins the initial enrollment period 3 months before the month in which they turn 65 and ends 3 months after the birthday.

How to determine if Medicare is my primary coverage?

To determine if Medicare can be your client’s primary coverage, it’s important for you to ask your client about their age. Also, ask if they are working or retired. If they are still working, ask how many employees the company employs. 6.

Can a 65 year old use Medicare?

If the client is 65 and older and is still working and on a group health plan with fewer than 20 employees, they are eligible for Medicare. Also, if your client is disabled, under the age of 65 and on an employer-funded health plan with fewer than 100 employees, he/she may use Medicare as the primary coverage.

Is Medicare Part C an HMO?

Medicare Part C is probably better known as Medicare Advantage and is available as an HMO and PPO from insurance companies approved by Medicare. Some popular plans: Aena, United Health Care, Humana, Cigna and Anthem and more.

How much do you make selling supplements?

Luke Hockaday, Director of Medicare Supplement Sales, explains: "If you're selling supplements, you don’t make very much – maybe, on average, $250/year per policy. But you make that same amount for six years (depending on your state), so it takes a lot of sales. The longer you're in it, the more they stack on top of each other," he says.

How do I start a Medicare business?

There are really three paths you can take to have a lucrative Medicare business: One sale at a time. Build a field force to sell underneath you. Add Medicare to your current offering (i.e: financial advisors or P&C agencies) Each option has unlimited income potential; it's just a matter of which path you want to take.

What is the key takeaway for all insurance producers looking to have a high income?

A key takeaway for all insurance producers looking to have a high income is to develop systems that work for you. All-star producers find ways to be efficient so they can spend almost all of their time on sales.

Why don't producers have to spend money on marketing?

After a certain point, the best producers don't have to spend money on marketing at all, because they have a revolving door of referrals. They have established themselves in their area as an expert, and word-of-mouth keeps their business going in high gear.

Is selling Medicare products profitable?

So yes, selling Medicare products can be very lucrative. But ultimately, your income is up to you.

Is there a cap on Medicare sales?

The good news is that your chosen field in the insurance business is one where you can make as much as you want. There are no caps. Originally published April 15, 2014. Updated December 21, 2020 with expanded information about how lucrative Medicare sales can be.

Is CNA available to agents?

That CNA is available to any agent who wants it, and it's the core of the All-Star Program:

What to do when selling Medicare supplements?

When you sell Medicare supplements from home, you need to offer a variety of products to meet each beneficiary’s needs. This includes supplement products, prescription drug coverage, Medicare Advantage products, and ancillary products. Ensure the products you are offering benefit the client, not a push for your pocketbook.

How many Americans have Medicare Advantage?

Ambition to put forth the effort to make sales. About 1/3 of Americans obtain their Medicare through Medicare Advantage Plans. The other 2/3 of the eligible persons have original Medicare, and about 81% of those enroll in supplement coverage.

How many clients does Medicare have?

Your income is only limited by the time you put into working. On average, a Medicare insurance agent in business for five (5) years has around 400-500 clients.

What is Medicare Advantage?

One of the benefits is the sale of Medicare Advantage or a Medicare supplement that provides you with a residual income for years. This is a passive income you enjoy the benefit of from every sale. Working as an independent agent means the commissions pay directly to you.

Can you refer Medicare insurance to a client?

If you personally deliver the Medicare insurance policy to your clients, you have the opportunity to go over again the benefits of the plan they purchased. This is also the perfect time to request a referral. By building a trusting relationship, you may be able to sell them additional products later.

Do you have to show your license to sell Medicare?

When you are working as an independent agent selling Medicare plans , those plans must show the state where you hold your license.

Is Selling Medicare Lucrative?

According to the Administration for Community Living’s 2017 Profile of Older Americans, the over 65 population as of 2016 is 49.2 million. Projections are that by 2060 there will be 98 million people in that age range. The estimation is 21.1 million over age 85 in 2030.

How Much Does An Insurance Agent Make on Medicare Sales?

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