How to Sell Medicare Supplement Insurance
By 2030, 1 in 5 Americans are projected to be aged 65 years or older. Leverage the growing boom in the Medicare industry by selling Medicare Supplement insurance. Whether you are a new agent or a seasoned agent looking to expand your portfolio, our quick guide will help you get started!
Selling Medicare Basics
Before you can start selling Medicare Supplement insurance, you’ll need to first complete these requirements:
- Obtain a State Insurance license
- Pass AHIP certification (America’s Health Insurance Plans)
- Get Individual carrier certifications
- Purchase E&O Insurance (recommended)
What is Medicare Supplement (Medigap)
Now that you know what you need to be ready to sell, let’s talk about what Medicare Supplement insurance is. Medicare Supplement, also known as Medigap, is a separate insurance plan Medicare beneficiaries can purchase in addition to their Original Medicare coverage. These plans are sold by private insurance companies and work in conjunction with Medicare Part A and Part B. There are currently 10 standardized Medicare Supplement plans beneficiaries can choose from, ranging from Plans A through N.
Why Sell Medicare Supplement Insurance
Understanding the value proposition behind Medicare Supplement insurance is essential in closing sales.
Thousands of Americans turn 65 each day and the need for supplemental insurance is growing. According to a KFF study, 9 in 10 beneficiaries had some sort of supplemental insurance. Why the need? Well for starters, Original Medicare doesn’t cover everything. Medicare Part A and Part B both provide a basic level of coverage, but there are gaps. Medicare Part B only covers 80% of a beneficiary’s expenses leaving them to cover the other 20% with no cap on the expense. The 20% can be financially devastating for beneficiaries who require a lot of doctor visits or frequent hospital stays. Medicare Supplement plans help provide beneficiaries with protection against the costly gaps left behind by Original Medicare.
Who Qualifies for Medicare Supplement?
A Medicare beneficiary generally qualifies for a Medicare Supplement plan as long as they meet the following requirements:
- Enrolled in Original Medicare (Part A and Part B)
- Not enrolled in a Medicare Advantage plan
- In their enrollment period (Begins on Part B effective date and ends 6 months later)
It’s important to note that beneficiaries can enroll in a Medicare Supplement plan after their enrollment period has ended; however, in most states (except CA and OR) they will be required to answer health questions and go through medical underwriting. Enrollment during this time is not guaranteed.
Finding your Ideal Client
So now that you know the ins and outs of Medicare Supplement, who is your ideal client?
Let’s take a look…
The ideal Medicare Supplement client is someone who:
- Lives on a fixed income and wants to be able to predict their costs each year
- Has a higher income allowing them to travel frequently
- Lives in an area with limited Medicare Advantage plans
- Doesn’t want to be confined to a certain network of doctors or hospitals
- Has health issues or conditions that may hinder them from passing underwriting in the future
Set Yourself Up for Success
Set yourself up for success and take the guesswork out of selling Medicare Supplement insurance by teaming up with an experienced partner.
AGA remains committed to new and experienced agents. As one of the largest Medicare-focused Field Marketing Organizations (FMO) nationwide, we set independent agents on the path to success with:
- A comprehensive co-op marketing program which provides personalized marketing resources to build a steady lead pipeline and an opportunity to earn lifetime renewals on submitted policies. We connect you with your target market at the right time so you can shine.
- Strong sales training to refine your selling skills, stay on top of Medicare industry changes, and build a competitive edge.
- Instant access to a technology backbone for your business that alleviates the burden of administrative tasks. Leverage your built-in support center to process enrollment paperwork and commissions, generate quotes, and submit applications. Use our T65 locator map tool to locate T65 medicare supplement leads from any location.
- Flexibility and freedom to establish your business on your time.