Medicare Supplemental Insurance Agents – Selling Medicare insurance (Med Supps or Medicare Advantage Plans) is one of the biggest jobs in insurance sales, even in the new pandemic world we all live in.
I say this with confidence because I have done it myself and continue to offer this type of health coverage at my agency.
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In fact, I started selling Medicare products in the mass market and transitioned into other areas of the business, such as selling Medicare Advantage plans and other health coverage such as dental, vision, cancer and hospital reimbursement products.
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The main reason I wrote this guide is to show you that our team is committed to going above and beyond to always provide you with value. We love working with experienced and entry-level sales agents who believe they are part of a great team, but we can’t do that if we don’t have a way to connect. If you’re reading this, you found us because you’re looking for something related to Medicare sales support.
If you’re happy with what we’ve written for you and want to learn more about building your own agency, we’d love to chat with you!
If you have not yet completed your insurance license and are looking for detailed information on how to get started, start here first.
I strongly believe that every insurance agent needs residual income to create long-term sustainability. In this case, we will talk about selling Medicare insurance as a source of residual income.
A Better You
Selling Medicare can help you earn a six-figure residual income in just 3-4 years. By then, you’ll have a nice six-figure salary. In rare cases, we have seen first-year full-time insurance agents achieve their goal of bringing in nearly 400 new clients to increase their residual income.
With the rest of the income, you have the freedom to expand your reach and start learning how to move into other sales lines and strategically grow your book of business over time. This is difficult if you don’t have a steady monthly income that allows you to devote time to learning.
Baby Boomers are aging rapidly, creating an opportunity for middlemen to start selling medical supplies (Medigap, as CMS calls them).
Most companies pay the same commission for seven years, and some for life. In addition, Medicare sales have reached an all-time high due to an aging population. According to the US Census, by 2040 there will be approximately 82.3 million older people. MedicareGuide.com surveyed how US adults over 65 use and trust eight sources of information, and shared some interesting data that found Medicare beneficiaries support their representatives.
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Before you start selling Medicare supplements, you need to be a student of basic Medicare information. There is nothing worse than freelancers who think they can make it.
You can’t! No matter how many Medicare prescriptions you receive each week, if you’re not prepared you’ll be covered.
You need to take the time to become an expert… to become a customer advocate. Your customers will appreciate the difference between talking to a knowledgeable agent and one who is just ready to sell. And trust me, if you just try to make the easy sell, they will smoke you out.
If you do it this way, you will help a lot of people and earn a lot of money at the same time.
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You can start learning how to sell Medicare Supplements with the government’s guide: The Medicare and You 2022 Handbook. You can download a copy directly from Medicare or visit your local Social Security office. The Centers for Medicare and Medicaid Services (CMS) publishes this manual with new updates every year.
I always tell anyone looking for Medicare supplement training to get the Medicare and Tu guide cover to cover first and then read it again. This is a great educational resource for medical supplements.
Every year, I read this Medicare guide overview to make sure I’m up to date on CMS changes. You should do the same.
Here are the basics of Medicare (you’ll have to read the book to really understand how it works):
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Selling Medicare supplement plans requires a very good understanding of Medicare, so be sure to read the next few paragraphs and get a copy of the Medicare and You guide.
Includes Original Medicare Part A and/or Part B. Coverage comes directly from Medicare and is 80% after deductibles and coinsurance. The remaining 20% of liabilities require additional protection.
It won’t cover everything about selling Medicare plans, but it will give you a great starting point.
Part A is Medicare coverage for hospital-related expenses. In most cases, Medicare Part A does not require monthly premiums because it is funded by paying Social Security taxes from your wages for at least 10 years.
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If someone doesn’t have Medicare Part A, they have it. For those who need to purchase Medicare Part A, 2021 will cost up to $413 per month.
Gaps in Medicare Part A coverage can put your clients at the greatest financial risk, so many agents often sell supplemental coverage.
Part B is Medicare coverage for medical expenses. When your clients are first eligible for Medicare, they have a 7-month Initial Enrollment Period (IEP).
Your clients IEP starts 3 months before the month they turn 65 and ends 3 months after that.
How To Read A Medicare Supplement Comparison Chart
See the full list of Medicare Part B services in 2022. On pages 29-49 of the Medicare and You guide.
Part B also includes a monthly payment, which in most cases is deducted from your client’s Social Security check each month. Part B premiums can be as low as $134 or $428.60.
If for any reason your client does not elect Part B on time, they will receive a late registration penalty of 10 percent for each full 12 months that they are late filing.
Medicare Part B enrollment penalties may not apply in cases where the proposed insurer has reliable coverage, such as through a covered employer.
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Finally, the annual deductible for Medicare Part B is $183 (2017 data). This payment must be made before Medicare can begin paying. After reaching the deductible, your client will receive 20% of the Medicare approved amount.
As an independent agent, it is important for you to understand the basics of Medicare so that you can have valuable discussions with your clients. Remember, the more your client trusts you, the more referrals you will get over time. Also, referrals are the best source of Medicare coverage you can get!
This is very important. If you can’t answer this very common question, your Medicare supplement sales will suffer.
Original Medicare is not an all-inclusive health insurance plan, so you need to confirm and understand the services that will cause gaps or costs for your clients. Below is a list of services not covered by Medicare.
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It is important that you share this information with your client so that they are not surprised when they need these services. Most of these services are covered by supplementary insurance products. Make sure you understand the cross selling rules so you can be confident.
Medicare Part D covers prescription drugs and a monthly premium. If your client does not enroll in Part D on time, a penalty will be added to their premium. Penalties do not apply if your client has a trust deed.
Part D plans are subject to the Annual Election Period (AEP) and can be changed starting October 15th of each year. by December 7 It is important to review these plans annually, as rates and premiums may change.
An easy way to find your client’s available Part D plans and premiums and deductibles is to look at 2022. Medicare and No guidelines.
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Below is a chart to help you understand the differences between Medicare Advantage and Medicare Supplements. Remember that your customers have two options.
Medicare Part C is commonly known as Medicare Advantage (MA plans) and is offered in the form of HMO or PPO plans from Medicare-approved private insurance companies. This means that those who choose a Medicare Advantage plan must use doctors listed in affiliated HMO (requires referrals) or PPO (No referrals required) networks.
These are the plans that everyone sells during the annual registration period that starts on October 15. through December 7, and some through open enrollment starting January 1 of each year. until March 31
There are other scenarios that allow you to sell outside of that period, and you can see them in 2022. On page 66 of the Medicare and You guide. As you read those sections, pay attention to the open enrollment period and the annual election period, as there are many important details.
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The confusing part about Medicare Advantage is what consumers often think