Medicare Supplement Insurance Helps with the High Cost of Healthcare

Transcription

1 Medicare Supplement Insurance Helps with the High Cost of Healthcare

2 Understanding Medicare According to the U.S. Government site for Medicare 1, Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). The different parts of Medicare help cover specific services: Medicare Part A (Hospital Insurance) Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Medicare Part B (Medical Insurance) Part B covers certain doctors services, outpatient care, medical supplies, and preventive services. Medicare Part C (Medicare Advantage Plans) A type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Part A and Part B benefits. Medicare Advantage Plans include Health Maintenance Organizations, Preferred Provider Organizations, Private Fee-for-Service Plans, Special Needs Plans, and Medicare Medical Savings Account Plans. If you re enrolled in a Medicare Advantage Plan, most Medicare services are covered through the plan and aren t paid for under Original Medicare. Most Medicare Advantage Plans offer prescription drug coverage. Medicare Part D (Prescription Drug Coverage) Part D adds prescription drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private-Fee-for-Service Plans, and Medicare Medical Savings Account Plans. These plans are offered by insurance companies and other private companies approved by Medicare. Medicare Advantage Plans may also offer prescription drug coverage that follows the same rules as Medicare Prescription Drug Plans. Medicare Supplement policies are uniform for every carrier. Therefore, Plan A coverage for one carrier is the same as Plan A coverage for all carriers. This same uniformity is true for all plans. There are 10 Medicare Supplement Plans. All 10 Plans have the same four basic benefits, and then there are five optional benefits that can vary by the plan purchased. Plan G is likely the most popular plan. Certainly, questions related to specific situations and claims issues should be directed to Medicare administration. Nevertheless, people do want to know about deductibles, co-payments and coverage gaps in Medicare and such knowledge can help them decide if they want to purchase a Medicare Supplement and, if so, which plan. 1 Medicare.Gov Website,

3 Why Sell Medicare Supplements? Your Timing is Perfect! Since 2011, with the Baby Boomer generation entering retirement age, approximately 11,000 people have been turning 65 every day. This is projected to continue until the youngest Baby Boomers turn 65 in Plenty of Prospects In addition to 11,000 people turning 65 every day, there are millions more who have already reached that milestone. As rates change or new carriers enter the market, people who already have a Med Supp will be searching for ways to save money on their premiums. About 3 out of 4 seniors medically qualify for a new Medicare Supplement. Best of all, you don t have to wait for an open enrollment period as you can write a new policy at any time of the year. Great Compensation Medicare Supplement sales not only provide first year commissions, it is a reliable source of renewal income as well. Carriers typically pay 6 years of level commission and some provide renewals in year 10 and beyond! Add the cash bonuses that many carriers pay for new business and that makes your income potential extraordinary! Gets You in The Door Seniors are usually willing to discuss ways to save on medical costs. Once you have established yourself as a trusted advisor in this area, you will find your clients willing to discuss other insurance and financial needs. Selling Medicare Supplements helps open the door to life, annuity, long-term care and supplemental sales. The Bottom Line Let s say you are an insurance producer focused on life and annuities, or you are a financial advisor/planner who also sells life and annuities. You would benefit greatly by offering to handle your existing 64 and older client s Medicare Supplement needs, and expanding to helping people turning 65 with major decisions that pertain to healthcare coverage. Having another agent in the house rarely works out well for you, and most Medicare Supplement agents cross sell annuities and life products. Annuity and wealth management buyers are the exact market you would want to target for Medicare Supplements. They are not low asset or lower income folks who traditionally end up in Medicare Advantage plans, or on Medicaid. True retirement planning must account for healthcare expenses in retirement, and a Medicare Supplement is the tool you use to protect middle class to wealthy clients from large financial liabilities associated with healthcare. A short talk with our Champions team at (866) can help you understand the income possibilities with the Medicare Supplement market.

4 Cross-Selling Opportunities Does your agency sell insurance products including life insurance (term life, simple issue, etc.) or fixed indexed annuities? Medicare Supplements can become a new product for your agents to open up opportunities to review clients life insurance policy or annuity on an annual basis. Clients who have Medicare Supplements also need Long Term/Short Term Care Insurance, Final Expense or have savings that can be best protected in an annuity. Medicare Supplement Champions has resources to sell these Medigap policies, compare rates from our contracted carriers, and even video training. Large and Growing Market. There are already about 50 million people on Medicare and 10,000 more become eligible every day. Easy Issue. Clients turning 65 and enrolling in Part B are guaranteed eligible for Medicare Supplement coverage. Even clients not eligible for guaranteed issue can often qualify with the less restrictive underwriting. About 75% of underwritten Med Supps are issued. Most Med Supp policies can now even be sold online with an e-application. Easy to Understand. Medicare Supplements plans are standardized by the Federal Government so a Plan G with one company will insure the exact same things as a Plan G with any other company. The distinguishing factors for Med Supps are the rates, company rating and reputation and customer service. Excellent Renewal Income. Most Med Supp carriers pay level first year renewal commissions through year 6 and some pay past year 10. Year-Round Sales Cycle. Unlike Medicare Advantage where most sales are limited to an Annual Enrollment Period, Med Supps can be sold anytime of the year. Medicare Supplement Champions has launched a website at medsuppchampions.com which requires each of your agents to register for a login and password to gain access to these tools. They also will need your specific promotional code designated to your agency to get registered on the site. Our Champions Advantage team can assist your agents with contracting, but they will be instructed to follow your agency s process. If additional assistance is required, you can contact Medicare Supplement Champions at (866) or info@medsuppchampions.com.

5 Your Resource for Selling Medicare Supplements Medicare Supplement Champions website, medsuppchampions.com, provides your agency with the carriers, leads, online rate comparison tool, video training library and marketing materials to support your consumer sales strategy and even recruit prospective agents. Medicare Supplement policies also can become a crossselling product for your current life insurance and annuity clients! Online Rate Comparison Tool: The Medicare Supplement Competitive Intelligence System (MSCIS) compares the monthly premium rates and other important information of different insurance carriers. You can select the criteria for a comparison of carrier rates and features. Video Training: Do you understand the available, government options with Medigap policies when talking to your client about Medicare Supplement policies? Would some additional training help you in selling these policies to your clients? We have developed the online library as a support resource for you and your agents to learn about Medicare Supplements. These on-demand videos are designed to be watched based on your schedule and are available on our website for your viewing. Lead Programs: At this time, we have developed competitive pricing with a direct mail lead vendor to support the Medicare Supplements program. We also have recommended lead vendors for telemarketer/appointment setter and purchase online/internet leads. Carriers: You and your agents can access information on all of our Medicare Supplement carriers to select a Medigap policy which may fit your client s needs at that time. Most of these carriers also have various sales incentive programs based on your annual premium. The Medicare Supplement Champions website is designed for agencies to help agents learn how to sell Medicare Supplement policies. Our Champions Advantage team will work with your agency to set up a specific promotional code and recruitment flyer for your agency to give your agents access to the website. You also can use medsuppchampions.com as a sales and training portal. The easiest and fastest way to get started involves registering for a Medicare Supplement Champions account at medsuppchampions.com. If you are interested in taking the next step, you also can contact your Champions Advantage representative at (866) or info@medsuppchampions.com to develop your personalized invitation flyer and promotional code to register your agents with Medicare Supplement Champions.