Medicare Supplements Sales Strategy
- Build rapport and establish yourself as the expert.
- Pre-qualify the client.
- Do the presentation and explain why it’s an advantage to the client.
- You close the deal/ask for the business. When you first sit down with a Medicare Supplement prospect, you’ve got to break the ice. ...
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:
How do I start selling Medicare supplements?
Just like with selling any health insurance, Medicare comes with rules and regulations. The first step to selling Medicare supplements is obtaining a license to sell Medicare in your state. The second step is to get AHIP certification.
Is there more to senior insurance sales than Medicare supplements?
There's a lot of information you need to take in when you're learning about Medicare, but once you've got it down pat, you're off to the races. The thing is, there's a lot more to senior insurance sales than Medicare Supplements. And there's a lot more to Medicare Supplement sales than this article.
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.
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 3 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.
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.
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...
How do I learn to sell Medicare?
To sell Medicare Advantage plans, you'll have to complete the America's Health Insurance Plans (AHIP) certification in addition to each carrier's compliance and product certifications. These certifications exist to help protect seniors and reward agents who do things the right way.
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.
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.
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 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.
How do I get Medicare leads for free?
5 Ways to generate Free Medicare LeadsAsk for Referrals. Referrals or word of mouth may be the oldest, best, and least expensive ways for insurance agents to generate Medicare leads and grow your business. ... Form Community Partnerships. ... Create a Digital Presence. ... Host and Network with Seniors at Events. ... Personal Contact.
Can you solicit Medicare Advantage prospects through email?
The only caveat: If you are initiating contact via email, you're required to include an opt-out opportunity. Direct unsolicited contact, such as text and direct messaging over social media, falls into the same category as unsolicited phone calls and door-to-door solicitation. This means it is not permitted.
What must a producer give an insured who purchased a Medicare supplement policy at the time of application?
What must a producer give an insured who purchased a Medicare Supplement policy at the time of application? An outline of coverage (also called a policy summary) must be provided to a prospective buyer of a Medicare Supplement Policy at the time of application or policy delivery.
Why do seniors use e-apps?
Given that many seniors use a computer or mobile device and have high-speed Internet at home, offering an E-App option will increase your chances of making more Med Supp sales. This option eliminates paper and mailing. All critical aspects of the application process, like the client’s signature and check, are done electronically.
When will the baby boomers be over 65?
The U.S. Census Bureau has declared 2030 to be a demographic turning point as all baby boomers will be over 65 years old. It also marks a decade when the aging population will outnumber children – a first in the country’s history. This rise in the number of seniors aging into Medicare creates a bubble of opportunity for the Medicare Supplements industry.
Overview of Medicare Supplements (Medigap)
Medicare is the public health insurance program created in 1965 allowing retirees to have health insurance even after leaving their employer’s group plan. Anyone aged 65 and older, people diagnosed with ALS or ESRD, and people who’ve received SSDI benefits for at least 25 months are eligible to enroll in Medicare coverage.
Is Selling Medicare Lucrative?
Selling Medicare supplements is a great opportunity to serve the underserved senior population and to make money. The Medigap market is two-thirds bigger than the Medicare Advantage market, and the plans are best-suited for people who travel and are financially stable.
The Best Way to Sell Medicare Supplements
Just like with selling any health insurance, Medicare comes with rules and regulations. The first step to selling Medicare supplements is obtaining a license to sell Medicare in your state. The second step is to get AHIP certification. While you don’t need AHIP certification to sell Medigap plans, it’s a great idea to obtain certification.
Medicare Basics
In order to effectively sell Medicare supplements, you should understand how the plans tie into Medicare as a whole. Here’s a general breakdown of Medicare:
Medicare Supplements Leads for Agents
Use more than one approach to reach potential leads. Email and social media are effective ways to reach your audience if you use the right tactics. Direct mail is still a great way to raise awareness even with the senior population using smartphones now more than ever before.
Start Making Money Selling Medicare Supplements
At Senior Market Advisors, our mission is to serve the underserved. The baby boomer market is all-too-often overlooked, and we want to help seniors live their best lives. When you partner with Senior Market Advisors, not only do you get to make a difference, you get an experienced marketing team, a sales support team and a free CRM to track sales.
Start Earning 6-Figures
Connect with a dedicated specialist in your market to learn how you can become a TRUE Senior Market Advisor.
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.
What age does Medicare cover?
Here’s our abbreviated recap of the current state of the Medicare program. This government-run health insurance program is available primarily to Americans aged 65 and older, as well as certain other folks with specific disabilities or diseases.
What is Medicare Part A?
If a client chooses this route, they will sign up for Medicare Part A. It’s provided free of charge to seniors who paid Medicare taxes during their working years. Part A covers inpatient care and some nursing facility expenses.
Do Medicare leads have a cellphone?
Most of your Medicare leads had a cellphone before today’s high schoolers were even born. Some may have been texting since they were under 50. Twitter, Facebook, and iPhones came out more than ten years ago. This is one way that today’s Medicare customers are different from past customers.
Can seniors apply for Medicare Supplement?
Seniors will still be able to apply for Medicare supplement coverage after this six-month window, however, it could mean they will pay a higher premium for coverage, or if they have serious medical issues, they could be turned down for coverage. Thus, for seniors looking for affordable and reliable benefits, earlier is better.
Is Medicare supplement coverage regulated?
Medicare supplement coverage is regulated at the state level, and so this means insurance agents often target leads within a particular state or a few states.
Do Medicare leads read fine print?
Today’s Medicare leads also aren’t afraid of reading the fine print, with their reading glasses, of course, and asking you pointed questions. These consumers like to make well-informed buying decisions.
What percentage of Medicare beneficiaries are in Original Medicare?
Plus, only 34 percent of Medicare beneficiaries are enrolled in a Medicare Advantage plan, meaning 66 percent of Medicare beneficiaries are in Original Medicare and could be eligible for a Med Supp!
What states have the same medsup plan?
Med Supp plans are standardized, meaning plans with the same letter offer the same benefits, from carrier to carrier and in all states, except Massachusetts, Minnesota, and Wisconsin. The main factor that sets same-lettered plans apart from carrier to carrier is their monthly premiums, or rates.
Do carriers update their Med Supp?
Carriers update their Med Supp rate sheets and applications all the time . It’s extremely important for you to always have the most up-to-date copies of these items to present during appointments, so we recommend getting them straight from the source: carriers’ agent or broker portals.
Have a Strategic Medicare Product Offering
The best way you’re going to expand your customer base is through portfolio diversification. If you’re continually selling Medicare Advantage plans to your immediate area, you’re going to see slim pickings.
Expand your Medicare Knowledge
And sharpen your sales skills. This has to be a continual effort if you want to remain competitive. AGA makes that easy with our many agent programs.
Don't miss our next event!
Think you know it all already? Don’t be too hasty. First, give this post a chance: Why You Need Medicare Training (Even Though You Think You Don’t).
Build a Network of Senior-Focused Professionals
Who else works with seniors in your community? Find out and create a local group. Think financial advisors, lawyers, real estate agents/property managers, care givers, CPAs, etc.
Create Opportunities to Delight and Impress
The power of referrals makes sense, especially in the health care industry. You want a Medicare agent you can trust, so positive word-of-mouth goes a long way.
