When selling a Medicare Supplement, you earn the same commission level for at least seven years. If you have a steady stream of Medicare Supplement clients – you can create a steady stream of income in commissions alone. If you target new clients every year, your commissions could compound exponentially.
Full Answer
Why get into the Medicare supplement market?
In sum, there are three great reasons to get into the Medicare Supplement market: There's a built-in need for a secondary insurance with Medicare Before we get into this, you need to be aware that there are two main routes a senior can take when it comes to their health insurance:
Are you primed for Medicare supplement sales?
If you already have a book of business, you're primed for Medicare Supplement sales. People already want and need supplemental insurance, and they're going to go somewhere to get it – they might as well get it from you.
Do you have a book of business selling Medicare supplement?
If you already have a book of business, you're primed for Medicare Supplement sales. People already want and need supplemental insurance, and they're going to go somewhere to get it – they might as well get it from you. For a quick overview of what we'll cover today, view this slideshow:
Is selling Medicare supplements a good career choice?
Over 10 thousand baby boomers turn 65 every day, making selling Medicare supplements and Medicare Advantage plans a lucrative career. If you do it right, Medicare sales can be the rewarding challenge you’re looking for. You get to make a difference in the world by helping people get quality healthcare. We can’t think of a better cause.
How do you make money selling Medicare supplements?
Generally, insurance agents often earn two types of commissions when selling Medicare plans: A dollar amount per application (Medicare Advantage and prescription drug plans) or a percentage of the premium sold (Medicare Supplements).
What are 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 make a lot of money selling Medicare?
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.
What is the commission for Medicare Supplements?
Medicare Supplement Commissions The average Medicare Supplement commission rate is 22% with a 12-month advance. The average yearly premium for Medicare Supplement plans is $1,600, which has a renewal rate of $29.33/month. Agents can earn renewal commissions for at least six years.
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 selling Medicare insurance a good career?
Medicare agents have significant earning potential and a promising future of stable career growth – but it's not just about the money. Medicare agents also get to help others while taking control of their own careers. For the right person, Medicare sales can be a very rewarding and lucrative career.
How hard is it to sell Medicare?
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.
Do Medicare agents get residuals?
Medicare can be that residual income. You can build a 6 figure income by steadily selling Medicare for as little as 3-4 years. Having this residual income can give you the flexibility to stretch your capabilities and start learning how to cross-sell other products and round out your book of business.
Is Medicare easier to sell than life insurance?
But those without such coverage usually delivers lower benefits. Because the product is simple, your selling process becomes quicker, unlike traditional life insurance policies that may need more than an hour's worth of explanation.
How do insurance agents get paid?
When a policy is sold to you, an insurance agent earns a commission. Also, there are promised rewards that are paid over the commissions for the sales targets achieved by them. The new rule by Irdai could work in the interest of policyholders.
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.
Why do people get into the Medicare supplement market?
In sum, there are three great reasons to get into the Medicare Supplement market: There are lots of prospects. Medicare is standardized. There's a built-in need for a secondary insurance with Medicare. Back to top.
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 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.
Is Medicare the primary insurance?
Medicare is always going to be the primary insurance. As a general rule of thumb, Medicare is roughly 80% coverage, and the supplement is roughly 20% coverage. Every insurance company has to provide the exact same benefits for each plan.
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.
Why do you want to have your client insured during the open enrollment period?
You’ll want your client insured during the open enrollment period because this is the only time they don’t have to worry about pre-existing conditions. Underwriting is much simpler. It’s only if your client misses this open enrollment period that they will have to pass health questions. 12.
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.
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.
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 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.
When is the best time to sell Medicare Advantage plans?
While it’s true the Annual Enrollment Period is the prime time to sell Medicare Advantage plans, selling Medicare Supplements provides you and your clients a very important alternative during the fall.
Is Medicare Advantage the best fit for all Medicare-eligibles?
Medicare Advantage plans aren’t the best fit for all Medicare-eligibles. They have set service areas and may not be offered where your client lives. Additionally, the private health insurers who offer Medicare Advantage products often contract with certain providers to be in their network. Your client may have a doctor he’s been going to for years who isn’t in the network of the most competitive Medicare Advantage plans available in his county.
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 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.
How to remain independent with Medicare?
To remain independent, you will likely need to obtain your insurance company contracts through a Medicare Insurance FMO. An FMO will work to obtain the best contracts for you to sell clients. Their support in finding you the best product to offer frees your time to meet clients and close sales.
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.
How many people will be on Medicare in 2060?
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. What this means when it comes to Medicare insurance sales is that one in every seven people, the equivalent of 15.2% of the population, meets Medicare age qualifications.
What is the difference between captive and independent agents?
If you plan to hang out a shingle and run your own business, independent is the way to go. A captive agent works for a company or agency. They must sell only the products that the company offers, limiting your options.
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.
What happens if you go out and try to change Medicare?
If you go out and try to change Medicare or reduce benefits, you will have millions of seniors go to the voting register and vote the bonds out, Republican or Democrat.
Can attrition rate agents keep up with the same ratio?
And if you look at the attrition rate agents failing out of the business, quitting out of the business and versus the ones that are coming in on top of the number of prospects coming in, it cannot keep up at the same ratio.
Is a zero premium a final expense?
And it’s not like selling a plan that has a premium attached to it. It’s a zero premium technically, but it’s not like a final expense plan that is going to cost something out of pocket directly from a monthly premium basis.
Do you have to quit selling final expense?
And you don’t have to quit selling Final Expense. It’s ironically the exact same market that you’re already working. You don’t even have to change your marketing to Medicare Advantage leads. We do, but there are plenty of successful Medicare agents that go in on final expense leads.
What to do if Medicare doesn't work?
If this doesn’t work, it’s likely your client will have to wait until the next General Enrollment Period to sign up for Part B.
Can you check if a client is eligible for Medicaid?
You could help your client set up and prepare for an appointment with a Medicaid caseworker. Additionally, you could check if she’s eligible for a State Pharmaceutical Assistance Program or any drug manufacturer rebates. There are also a few simpler ways to save on drug costs that your client might not be aware of.
Is Medicare sales unique?
All Medicare sales opportunities are unique — some just a little more so than others. We want to help you be better able to handle whatever life — or that client with several major medical conditions and a long list of prescriptions — throws at you.
How many Medicare Supplement Plans are there?
There are six Medicare Supplement plan options: F, N, G, L, K, High F. In most states, the plan option offer standard benefits, meaning that benefits can not vary from one plan to the next. For instance, if a company offers a plan F, then they must offer the same benefits as the other carriers also offering plan F. Ultimately, the only difference between carriers offering Medicare Supplements is the monthly premium, as well as added benefits like Silver Sneakers.
Is Medicare Supplement the same for all clients?
Underwriting for Medicare Supplements is not the same for all clients; it depends on their situation and their residing state. For instance, those turning 65 or those with a qualifying event have guaranteed issue. In some states, all plans are guaranteed issue whereas other states only offer guaranteed issue during certain periods.