Full Answer
Do you want to make money selling Medicare?
If you are making good money but have a desire to step out of the office rat-race and build your own lucrative business, you are in the right place. Knowing how to sell Medicare can take your income to new heights. Your income is only limited by the time you put into working.
How do I market to Medicare prospects?
You can read about these and many more ways to market to your Medicare prospects here. Ideally, you would only have to actively prospect for the first few years. Once your established, you'll hopefully be working solely off of referrals.
What are the scenarios for selling Medicare insurance?
LM: Outside of the annual enrollment there are four scenarios for selling Medicare insurance. Scenario number one, we already know, turning 65. That’s going to be your go-to scenario. Number two is people that have a chronic condition. The biggest one in my area is diabetes.
How many people are eligible to sell Medicare insurance?
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. To have a lucrative business, you need two things:
Medicare Sales Certification and Recertification
If you’re thinking about selling health insurance and only sell home and auto, the process of getting licensed as a Medicare agent is not difficult and can be the path to a lucrative career.
Marketing to Seniors: How Can I Sell More Medicare Policies?
The good news is that e-applications are available to Medicare shoppers so you can sell Medicare supplements over the phone! The leads from SmartFinancial came into your queue because interested seniors filled out an online form and are likely to apply online and buy over the phone. These are the perfect leads!
Know the Senior Insurance Market
If you’re not familiar with the senior market, it’s a good idea to learn about seniors’ needs before you begin haphazardly selling insurance products. This is the most seasoned demographic you’ll ever sell insurance to, so using gimmicks will likely not pan out as easily as it would with a young person.
Medicare Advantage Sales Leads: Do I Need to Buy Them?
Medicare Advantage sales leads are a perfect way to find seniors looking to buy insurance. Some leads from SmartFinancial have a built-in Medicare Advantage sales strategy and others have a built in Medigap insurance strategy.
Medicare Advantage Sales Scripts
Keep in mind that you don’t want to ramble on and get the entire script in, in one shot. Wait and allow the prospect to speak between each section. Pay close attention to what they are saying, and proceed as is appropriate:
Which Are the Best States to Sell Medicare In?
All 50 states are ripe for Medicare supplement sales and Medicare Advantage sales but the best states to sell in are Florida, Arizona, Illinois, Texas, Pennsylvania, New Jersey, California, North Carolina, New York, Michigan and Virginia! There are high concentrations of individuals who hold Medicare supplement policies, and they may be electing to change their coverage during Open Enrollment 2020!.
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 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.
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.
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.
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 to direct mail leads?
Direct mail leads are a well-known marketing technique. Select your territory and lead vendor, and then choose your mailing methods, such as lead cards or tri-fold self-mailers. Decide how many mailers you want to send out and whether you want to send them third-class or first-class mail.
How Much Money Can You Make Selling Medicare?
With more than 10,000 baby boomers turning 65 every single day, there is an increasing opportunity to sell Medicare insurance policies. However, many aspiring agents wonder how much money they can really make selling Medicare.
Interested in a Career as an Independent Agent?
Here at MCC Brokerage, we provide our agents with the tools they need to be successful when selling Medicare products.
How does Medicare Advantage work?
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). Each year and beyond, carriers pay out renewal commissions to the agent if the beneficiary remains enrolled in the plan or enrolls in a new, “like” plan (same type).
What does it mean when you assign commissions to the FMO?
When you assign your commissions to the FMO, this means the carrier will pay the FMO, who will then pay you . Agents signing an Assignment of Commissions contract must be careful, because depending on their contract, their upline could keep their renewals should they choose to leave.
Do carriers pay agents?
It’s important for agents to know that carriers pay agents and FMOs separately. Your relationship with an FMO is comparable to your clients’ relationship with you.
Do insurance carriers have to pay Medicare Advantage commissions?
The Centers for Medicare & Medicaid Services (CMS) set the maximum broker commissions for Medicare Advantage and Medicare Part D annually; however, insurance carriers aren’t required to pay these amounts. What you earn for Medicare Advantage and PDP sales could be less, depending on the carrier and your contract with them.
What is the age limit for Medicare?
LM: When somebody has Medicare they’re normally 65 and over. You do have a segment of the population under 65 that get Medicare who are usually disabled. Once someone is on Medicare they have two options – Medicare Advantage or Medicare Supplement. There’s not a good or a bad option, there is simply two options.
What is the certification test for Medicare Advantage?
Selling Medicare Advantage plans, you get a contract with a carrier, but once you’re contracted with that carrier every year that you are in Medicare Advantage sales, you’re going to have to take a certification test called AHIP. A lot of people freak out, “Oh, it’s so hard.”. Well, it’s Medicare 101. You need to know the product that you’re ...
What is the difference between Medicare Supplement and Advantage?
As long as you’ve done that you’ve done your CYA. The other difference between a Supplement and an Advantage plan is you have a prescription portion. So you’ve got to sell a prescription drug plan with a Medicare Supplement.
Can you door knock Medicare Advantage?
Now in the Medicare Advantage world if you don’t have permission to contact you’re not supposed to contact. You can’t door knock for Medicare Advantage, so you’ve got to wait for it to come to you, but you can put a lot of honey out there to attract the bees.
Does Medicare Advantage include prescriptions?
For Medicare Advantage a prescription plan is included. The copays per carrier are probably different, but they function the same way. All you’ve got to do is pull up the formulary, which is usually in a PDF and just do the search for the medications and make sure they’re in there.
Can you make a ton upfront selling Medicare Advantage?
Selling Medicare Advantage insurance, you don’t make a ton upfront.
Can you sell Medicare Advantage plans?
The unique thing about selling Medicare Advantage plans is that you don’t get to sell a product unless you’ve passed tests and meet knowledge requirements. LM: Correct. Further, you may have face-to-face training requirements before selling. You’ll be in a room of other new agents.
What is Medicare quoting engine?
2. Medicare Quoting Tool / Online Quoting Engine - A Quoting Engine makes it easier for agents. to have access to accurate, up-to-date pricing and plan details for the nations top senior.
Why is it important to work with an FMO?
A good FMO will work consistently to get the best contracts with top companies, and offer them to agents and agencies of all sizes. They should be a pillar of support, helping you maximize your efforts, and allow you to focus on supercharging your business.
Do you need certification for Medicare Supplement?
Medicare supplement products however, do not require any additional certifications beyond your state’s licensing requirements.
About Kenny And Ethan Of Medicare Millennials
DD (David Duford): Thanks for being here guys. If my audience hasn’t seen any of your work on YouTube, Kenny and Ethan, why don’t you tell us a little bit about yourselves and then we’ll jump right in.
Getting Into Medicare Sales
EG: So we’ve been doing Medicare policies, and Kenny and I have worked together for four and a half years. He’s actually the guy that’s got me into the business. He roped me in, I can’t get out now.
Why Is Selling Medicare A Lucrative Business?
DD: Kenny, maybe you can pop in here and answer this question for us. So if you can picture my audience, most probably are familiar with Medicare, maybe they’re even thinking about selling Medicare, maybe they sell Final Expense like you guys focused on as your primary product at one point. Maybe it was just brand new.
How The Covid-19 Crisis Impacted Medicare Sales
We’re right in the middle of COVID-19. And have you guys seen a reduction in insurance sales due to coronavirus? Which is a good point to bring up. I mean, have you guys seen a reduction in interest or business when it comes to Medicare?
Will Agents Get Eliminated By Artificial Intelligence Or An Amazon-Like Entity?
DD: And that’s a good point to bring up. It’s 2020. Amazon has destroyed the mom and pop retailer, Walmart did too before that. Are you concerned at all with a risk of say AI, or some big name coming into the business and gobbling up market share and making your job harder? What do you think about the future of insurance agents?
Referrals
DD: Ethan, Kenny, any last thoughts on why selling Medicare is a lucrative business? Anything we want to hit on. I mean we’ve covered a lot of basis.
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.
What to do if you've made it this far?
If you've made it this far, hats off to you . 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.
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.
Why do Medicare sales reps make more money?
One reason is that experienced reps usually have larger client bases – and they earn higher commissions when customers renew their medicare insurance through them.
How much do Medicare sales agents make in 2021?
Average sales for medicare sales representatives varied considerably across the U.S. in 2021. In the Midwest, for example, medicare sales agent jobs paid $67,659 in Illinois and $70,990 in Minnesota, according to Indeed. Those in the South made around $61,513 and $48,587 per year, respectively, in Louisiana and Arkansas. These sales professionals earned $74,877 and $69,318 , respectively, in Hawaii and California in the West. In the Northeast, they earned $63,039 in New York and $72,355 in Maine, for instance.
What does a Medicare sales rep do?
What Does a Medicare Sales Rep Make? The best medicare sales reps have compassion for their clients, helping them find the best insurance for their long-term medical and pharmaceutical needs. Most medicare sales reps contact seniors by phone to set appoints and then present various medicare plans to them in person.
Why is the salary of a Medicare agent higher in New York?
Medicare insurance agent salary is higher in states like New York and California because of higher living and housing costs. For example, a medicare sales rep who earns $65,000 in Des Moines, Iowa, would need to make $180,458 in Manhattan to enjoy the same living standard, according to CNN Money's "Cost of Living" calculator.
What education do you need to be a Medicare sales rep?
The education requirements for a medicare sales rep are a high school diploma and two or more years of health care or insurance sales experience. Some employers may prefer a bachelor's degree. Medicare sales reps, as insurance reps, must also pass state insurance exams to become licensed in their states.
What is the average commission for Medicare Supplement?
The average commission for medicare supplemental insurance is between 5 and 20 percent, according to Best Medicare Supplement. The Centers for Medicare & Medicaid Services caps the compensation paid by insurance companies to medicare sales reps. For example, the maximum commission allowed in 2021 for selling a medicare advantage plan ...
How Much Does An Insurance Agent Make on Medicare Sales?
Commissions with An FMO vs. Without An FMO
- Carriers pay agents for the business they write, even if those commissions go through an FMO first (scroll down for a note about assigned commissions). It’s important for agents to know that carriers pay agents and FMOs separately. Your relationship with an FMO is comparable to your clients’ relationship with you. You don’t pay anything to the FMO, just like your clients don’t pay a…
A Note About ‘Assigned Commissions’
- Oftentimes, an agent working with an FMO will receive commissions directly from the carrier. In select cases, an FMO may want agents to “assign” them their commissions(e.g., if they provide the agent with leads, advances, etc.). In others, the carrier may require agents to assign their commissions to their FMO (e.g., the carrier only pays direct contracts). When you assign your co…