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 market my Medicare Advantage plans?
The best way to market Medicare Advantage plans is to utilize marketing materials, including: We’ve developed some generic materials you can use to spread awareness and put yourself out there as an agent who offers Medicare Advantage plans. You can also dig into your agent portals and check out the available materials.
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.
Should I enroll in Medicare Advantage or Medicare supplement plans?
Many beneficiaries may find that Original Medicare may not cover all of their healthcare needs, and they need to enroll in more comprehensive coverage in the form of Medicare Advantage (MA) or Medicare Supplement (Medigap) plans.
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.
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 are Medicare Supplement plans funded?
The plans receive some funding through monthly plan premiums, but most of the money comes from Medicare. The private insurance companies that offer the plans receive a payment each month from Medicare. This covers the costs of Medicare parts A and B for each beneficiary.
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.
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.
Is being a Medicare agent worth it?
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 do you market a Medicare Advantage Plan?
Medicare Advantage Marketing to current patientsTargeted mail and emails for patients 65+Reminders for current patients during open enrollment.Informational blogs and social media posts.Posters in your office.Referring patients to an informational page on your website with a lead capture.More items...
Do Medicare agents get residuals?
As an insurance agent, you need a residual income base to create a career with long-term sustainability. Medicare can be that residual income. You can build a 6 figure income by steadily selling Medicare for as little as 3-4 years.
Does CMS regulate Medicare supplement plans?
The California Department of Insurance (CDI) regulates Medicare Supplement policies underwritten by licensed insurance companies.
What is the biggest disadvantage of Medicare Advantage?
Medicare Advantage can become expensive if you're sick, due to uncovered copays. Additionally, a plan may offer only a limited network of doctors, which can interfere with a patient's choice. It's not easy to change to another plan. If you decide to switch to a Medigap policy, there often are lifetime penalties.
What are 4 types of Medicare Advantage plans?
Below are the most common types of Medicare Advantage Plans.Health Maintenance Organization (HMO) Plans.Preferred Provider Organization (PPO) Plans.Private Fee-for-Service (PFFS) Plans.Special Needs Plans (SNPs)
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.
What is the difference between a Plan G and a Plan F?
There's a little bit of a premium savings when you sign up for a Plan G versus a Plan F. Plan G has a small deductible (Medicare Part B deductible) while Plan F does not.
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.
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.
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1. Be a Question-Answerer
Many folks have questions about Medicare plans, coverages, and benefits. Even those who turned 65 years ago, may come across new questions, as the laws governing the program continue to change and update.
2. Host a Seminar
You can drive many new leads by serving a larger group of those seeking your question-answering skills by hosting a local seminar. Your seminar could be on Medicare itself, or, it could be on a related topic, such as senior health, nutrition, retirement planning, or anything else of interest to Medicare prospects in your area.
3. Attend Events
You may not find immediate Med Supp leads at a closed workshop or tradeshow, but you can use your attendance at such events to generate future leads.
4. Ask for Referrals
If you have an existing book of business, particularly within the Medicare Supplement market, referrals can be a great way to expand your Med Supp business. It’s easy because your loyal clients already trust you, which helps build trust with new referral leads.
5. Partner for Referrals
If you have a cousin, neighbor, or friend in another line of business, you might look into striking up a referral partnership. The easiest route involves exchanging business cards to stock in each other’s shops. But you could both get more out of a partnership by asking your clients for permission to trade info with your referral partner.
6. Network for Referrals
If you don’t have cousins, friends, or neighbors with client-based businesses, you can always make new friends in the business community to find potential referral partners. Try socializing with other local professionals like CPAs, lawyers, financial planners, churches, pharmacies, and so on.
What is marketing in CMS?
Marketing refers to using materials to draw someone’s attention to a specific plan and then influence them to select it. Any marketing materials that have a carrier’s name on them or refer to a particular plan must be approved by CMS.
Can you connect with other businesses?
You can also connect with other businesses in your area and develop a referral stream. For example, you might connect with a financial advisor – she would refer her Medicare clients to you for their health and life insurance, and you would direct your clients to her for retirement planning.
Can you market to age ins?
You can, however, market to age-ins (people turning 65). Educational events must be explicitly advertised as educational – no marketing or sales activities are allowed. Marketing and sales events are designed to steer potential enrollees toward a plan or set of plans.
Can you market to MA enrollees?
You cannot market to potential MA enrollees in the following ways: Approaching someone in a common area (parking lot, hallway, etc.)
Can you get Medicare Advantage without a goal?
You can’t get to your destination without following a map, and you can’t be successful in Medicare Advantage marketing without a goal. Before you start any marketing plan, write down your goals. Then, you can use the materials at your disposal to help you reach them.
Production Goals
Whether you’re a full-time agent or you’re selling insurance as a side gig, there is a lot of money to be made in this business. With so many people in need of your expertise, you can take great pride in the work you do.
Provider Networking
Doctor’s offices, senior centers, and gyms are all great places to generate activity for your Medicare business. Find out who the gatekeeper is and introduce yourself as someone who can help their members with Medicare coverage.
Direct Mail Marketing
The price of a 1,000 piece mailer is normally $450 to $500. Let’s assume that out of 1,000 mailpieces you make 3 Medicare sales. That’s a 3X return on investment!
Community Involvement
Are you involved with a religious organization, chamber of commerce, school board? These groups give you the opportunity to market your business for little cost. This could include bulletin boards, business cards, flyers, and word-of-mouth.
Digital Marketing
We all know that technology is increasingly important in the Medicare industry.
Client Relationship Management
As your Medicare business grows, you can quickly lose track of your data. A client relationship management system (CRM) helps nurture your client relationships with ease through contact management, sales records, automated workflows, email marketing, and website integration.
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What is Medicare Supplement?
A Medicare supplement policy, also called a Medigap policy, is health insurance sold by a private insurance company to fill certain gaps in the Original Medicare coverage. The Original Medicare Program, Medicare Parts A and B, does not cover all health care expenses. There are major gaps in the program that can create financial hardships ...
How long can you go to jail for Medicare Supplement?
jail terms for up to two years. fines up to $10,000. Although it is unethical and inappropriate to duplicate existing coverage for the sake of generating a premium and/or commission, the practice does exist. Producers may, therefore, encounter senior citizens who already have more than one Medicare supplement policy.
Why is it important to provide proper advice about existing coverage?
Providing proper advice about existing coverage is as important as recommending new coverage to close insurance gaps. Doing so may not always result in a sale or commission, but such behavior is demanded by regulation and codes of professional ethics.
Does Medigap cover Medicare?
Medigap policies are designed to help fill many of those coverage gaps, and some Medigap policies even consider benefits the Original Medicare does not include. However, Medigap policies do not cover Medicare beneficiaries’ share of the premium costs under other types of health coverage, including Medicare Advantage Plans (e.g., HMOs, PPOs, ...
Is it illegal to sell Medicare Supplement?
Too often, senior citizens are the target of unscrupulous individuals who prey on their fears and lack of resistance to high-pressure sales tactics. In most states, it is illegal to sell duplicate Medicare supplement cover¬age ( not replacement coverage), and it is illegal to sell Medigap insurance to people who are covered by Medicare Advantage ...
Do seniors need Medicare?
Senior citizens also need good advice regarding Medicare and Medicare supplement insurance policies. Many insurers and retiree associations overwhelm senior citizens with Medicare supplement advertisements. This often creates confusion, and the confusion causes seniors to make mistakes in choosing supplemental coverage.
Does Medicare cover additional health care?
The need for additional health care coverage is clear when the benefits provided by Medicare are reviewed. For individuals who have adequate income to provide for their daily needs and comforts but only a few extra dollars for nonessential items, a sudden, large medical bill can create a financial crisis.