This is the season for Medicare Supplement rate increases. As many of you may have already experienced, Medicare supplement plans are going up, and this is the time of the year when the carriers typically start increasing their rates. Some will go through May and even June. Unlike Medicare Advantage plans, the supplement plans will renew at different times during the year and their rate increases will occur at different times during the year.
Expect and Prepare for Medicare Supplement Rate Increases
As an agent, first of all, it's important to understand that rate increases on Medicare supplements should be a given. As an agent, you should expect that this is going to happen. You should go ahead and prepare your client for rate increases at the time of the sale. You should be realistic with the consumer and let them know that as a rule, Medicare supplement plans do go up every year.
You should go ahead and prepare your client for rate increases at the time of the sale.
Ronnie James // TMG Training Director
In the past, we've seen plans that didn't have a rate increase, and if you put them on a plan that for that particular year there's no rate increase, guess what? You get to play the good guy, which is something that as an agent we all want to be able to do. But the flip side of that is, is that if you don't set realistic expectations with the consumer, you end up being the bad guy, which is where none of us want to be. So keep that in mind as you look at rate increases.
Shop around for a less expensive plan
I would say that as an agent, if you have an insured member on a Medicare supplement plan and they're still in good health, you should realistically look and shop for them every three to four years.
There will be an opportunity for them to look at another carrier that could be less expensive for them. At that point, you start the commission cycle over again. You have won the confidence of your consumer once again, and it's a win for everybody. Keep that in mind as you sell Medicare supplements. The supplement market is thriving, but there are still going to be that subset of individuals who hate Medicare Advantage. There's also going to be that population who says "I just like the security of my Medicare supplement".
Keep in mind the simplicity when you're selling the product. Once they purchase a plan, whether it be an F or G or a N, that product is going to stay the same as long as they keep it.
However, you need to do a good job of educating that consumer and letting them know that the premiums will change. In that way whenever they get hit with a rate increase. It's a much easier conversation for you to have.
As always, I wish you the best in this industry. And if I can help in any way, please feel free to give us a call at 888-622-9122.