With 10 different Medicare Supplement plan letters, starting to sell Medicare Supplements can seem difficult. We’re here to help you make sense of it all!
After reading this post, you should be able to capitalize on the opportunities that selling Med Supp insurance provides and make baby boomers’ business yours.
Why Sell Med Supps
With Medicare Advantage sales far less abundant outside AEP, landing new prospects during spring, summer, and mid- to late-winter can be tough.
But consider this: 54 percent of Medicare beneficiaries are in an MA plan. The remaining 46 percent of Original Medicare could benefit from the extra coverage of Med Supps.
Here’s what makes selling Medicare Supplements so great:
- Most don’t require annual certifications.
- You can use them to connect with people in Original Medicare and make sales during lock-in.
- You can still enjoy the perks of selling Med Supps during the Annual Enrollment Period.
- e-Applications are available from most carriers, so you can sell over the phone.
- Med Supp production often qualifies for bonuses from carriers or FMOs.
- Over four million people will turn 65 each year through 2027
About Med Supps
Standard Benefits
All Med Supp plans (A through N) are standardized. This means plans with the same letter offer the same benefits from carrier to carrier and in almost all states. (In Massachusetts, Minnesota, and Wisconsin, standardized plans can be changed without federal approval.) Conversely, plans with different letters offer different benefits.
If a company wants to issue Med Supp policies, they must offer Plan A.
Standard Medicare Supplement Plans & Benefits
1Enrollees in high-deductible Plan G must pay for their Medicare-covered costs up to the deductible amount before the Med Supp begins to pay.
2Med Supp pays 100% of the Part B coinsurance, excluding copayments of up to $20 for some office visits and up to $50 for ER visits that don’t lead to inpatient admission.
3Upon meeting your annual out-of-pocket (OOP) limit and annual Part B deductible, the Med Supp pays 100% of all covered services for the remainder of the calendar year. OOP limits are for CY2025, unless otherwise specified.
4Plan only available to those eligible for Medicare before January 1, 2020.
5Enrollees in high-deductible F must pay for their Medicare-covered costs up to the deductible amount before the Med Supp begins to pay. Only available to those eligible for Medicare before January 1, 2020.
Note: A check mark means the plan pays 100% of the benefit. Med Supp plans are standardized differently in MA, MN, and WI.
Source: Medicare.gov
There’s a time and a place for each plan letter. When you’ve determined a Medicare Supplement plan is the best option for your client, it’s time to choose a standard plan type.
You may also be looking for a simple way to determine which fits best — A, B, C, D, F, G, K, L, M, or N. As is always the case with insurance, it depends on your client’s preferences and circumstances.
Premium Cost
Med Supp plans offering more coverage often have higher premiums (e.g., Plan G usually has a higher premium than Plan A).
Guaranteed Renewable
All Med Supp plans are guaranteed renewable. This means clients can stay in their plan if they continue to pay their premiums.
Guaranteed Issue
Med Supp Plans A, B, C, F, K, and L are guaranteed issue for people eligible for Medicare before January 1, 2020; Med Supp Plans D, G, M, and N are not. Those eligible for Medicare before 2020 can’t join or switch to Plans D, G, M, and N outside of their Medicare Supplement Open Enrollment Period if they aren’t healthy enough to pass underwriting.
Plans D and G are guaranteed issue plans for people newly eligible for Medicare on or after January 1, 2020. This means, individuals who became eligible for Medicare in or after 2020 can switch to Plans D and G outside of their Medicare Supplement Open Enrollment Period.
This is true even if they have past or present health conditions, if they have a guaranteed issue right.
Learn more about how to switch a client’s Med Supp plan
How Selling Med Supps Helps You
Portfolio Diversification
Adding Medicare Supplements will broaden your portfolio. Expanding your product options will increase your client base, allow you to complement your existing product offerings, and help you be proactive with insurance industry trends.
At Ritter, we recommend offering products from carriers with strong financials. The lowest rate doesn’t always mean the best option. Matching your client with a higher AM Best-rated carrier can pay off in the long run, with more reasonable rate increases and product stability.
Adding Medicare Supplements will broaden your portfolio.
Also, it’s important to review the underwriting questions for the plans you’re looking to add. Not all underwriting guidelines will be the same. For instance, some carriers have pre-existing clauses, while others don’t.
Some carriers may look back two years for a certain condition. Others look back three. Having products that provide underwriting for all your client’s various needs and conditions could be a good option, even if they are pricier.
Want to learn more about Med Supp underwriting? Grab your free copy of A Comprehensive Guide to Medicare Supplement Underwriting!
Be sure to diversify in every spectrum when building an insurance portfolio. Remember, pricing may vary, but the product that perfectly fits your clients’ needs is priceless.
Attracting and Retaining Clients
Your clients are at or reaching retirement age. As a result, they’re looking for someone to help them navigate their health care. Providing the right product and guidance should gain their trust. Also, health needs can change rapidly, so having a variety of products can help keep your clients long term.
Pricing may vary, but a product that fits your clients’ needs is priceless.
Certain carriers offer pricing that benefits certain age groups more than others. You can help switch your healthy clients in and out of plans that suit them best by having products for a multitude of age groups.
Ensuring your clients are happy and in the plan that best meets their needs will help your client base grow naturally. Happy clients tell their friends, and renewal income for Medicare Supplements can be extremely attractive.
Expanding Distribution Reach
Having Medicare Supplements in your portfolio also allows you to expand the number of clients you serve. It stretches your client base from the Medicare Advantage market into the Medicare market.
In theory, now you can serve every Medicare-eligible individual. You can also compliantly sell Medicare Supplements over the phone, which could open your market geographically.
Not only that, but Medicare Supplement products are often a gateway into other plans. An appointment can be the perfect opportunity to cross-sell other products. Some products include final expense policies or prescription drug plans, which keeps your clients covered and boosts your commissions.
Filling the Gaps
Adding a Medicare Supplement product can increase your sales and fill the gaps in your clients’ coverage.
A diversified Medicare Supplement portfolio can attract and retain clients as well as expand your distribution reach. Preparing yourself to reach the thousands of older Americans that are joining the market every day may be your ticket to success.
A Medicare Supplement product can increase your sales and fill the gaps in your clients’ coverage.
Medicare eligibles are looking for agents like you to guide them through the process and help give them a sense of security about their health care. Building a portfolio of stronger products should put you in a better position to serve this market.
How to Begin Successfully Selling Med Supps
Talking with Clients
If your client is interested in a Med Supp plan, it’s important you ask them about their health, lifestyle, medical needs, budget, and preferences.
Med Supp plans can have different rates based on an individual’s zip code, age, gender, use of tobacco, and marital status. While all plans give beneficiaries the flexibility to visit any Medicare provider in the U.S., only certain ones include a foreign travel emergency benefit.
Some clients are willing to pay more for the security that benefit-rich Med Supps offer. This is especially true if they have or foresee health issues that could lead to large out-of-pocket expenses.
Additionally, know that there are times when you should recommend Med Supp plans K, L, M, and N.
Ask the Right questions
The next step to picking the best plan letter is figuring out what’s important to your client and what their individual health needs entail. You’ll need to ask them questions to get the full picture, like:
- “Does your client like to travel?”
- “Do they have some financial cushion for out-of-pocket expenses?”
- “Do they live in a state that allows excess charges?”
- “Will they be visiting the doctor often?”
- “Did they become eligible for Medicare before January 1, 2020?”
Going through the flow chart below will steer you in the right direction in identifying the best fitting plan letter.
Want it for yourself? Download and print the Med Supp Pick-a-Letter Chart
Keep in mind
Before signing up a client for a certain plan letter, make sure your client knows and approves of exactly what will and what won’t be covered. Just because you have a healthy client with money saved for retirement doesn’t always mean Plans A, B, K, or L will be the best fit.
That client might want to keep out-of-pocket costs low regardless, so D or G may be a better choice. Keep an open dialogue with your client to ensure a good fit.
Since new-to-Medicare clients can’t enroll in plans C and F, the number of people on these plans will dwindle. This causes premiums to increase, so you may want to consider D, G, or N instead.
Before signing up a client for a certain plan letter, make sure your client knows and approves of exactly what will and what won’t be covered.
Comparing Med Supp Rates with Market AdvisorTM
Since beneficiaries get the same benefits from Med Supp plans with the same letters, offering plans from carriers with the most competitive and stable premiums is key. You can easily target these plans through Market AdvisorTM, a state-of-the-art plan comparison tool.
You can easily access this when you become a Ritter agent. You’ll be able to quote Med Supps, keep track of Med Supp clients, submit e-applications for some carriers, and obtain real-time underwriting feedback. Fill out the form here to get started with Market AdvisorTM!
If you’re looking for more information or have questions about selling Medicare Supplements, check out our free guide, The Complete Guide on How to Sell Medicare Supplements. Request your free copy!
People appreciate an agent who provides products that fit their wants and needs. From our experience, those who have a large, diverse portfolio that includes multiple Med Supps build the strong client relationships that allow their businesses to thrive.
If you register with Ritter for free, you’ll gain access to more information, support, and resources to better help you sell Med Supps successfully!
Not affiliated with or endorsed by Medicare or any government agency.
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