What is a Medicare Supplement?
Medicare Supplement Plans are just that - a supplement to your current Medicare plan. It is rare that Medicare covers everything your client needs, so medicare supplement insurance is the perfect plan to fill in those gaps.
Medicare Supplement plans will help take care of most, if not all, of the expenses that Medicare recipients receive that Medicare currently does not cover. For example, a medicare supplement plan could cover co-payments and coinsurance costs that really add up.
Why Should Your Clients Choose a Medicare Supplement?
It is easy to get overwhelmed when trying to decide on a med supp plan. There are so many products that it quickly becomes a confusing mess. Individuals who are turning 65 are often exposed to bad or wrong information being given out, even if the intentions are good. Start understanding your customers and why they would buy on, to increase your supplement sales.
“The question really is ‘why wouldn’t I choose a Medicare supplement?’ ”
Ronnie James
Supplements offer these benefits and more to your clients:
They are Easy to Understand
Medicare Supplemental plans (aka Medigap) plans are standardized by the federal government. Not every person qualifies for every plan and not every carrier sells every plan, but with 10 different plans to choose from, there is a Medicare Supplement plan for everyone.
The Benefits NEVER Change
Once your client is enrolled in a supplemental plan, the benefits are locked in. There is no need to worry about benefits being reduced in the future. It’s good to know that your clients are safe and secure for the future.
No Need to Worry About Network Restrictions
As long as a provider accepts Medicare, then he/she will also accept a supplement. Approximately 98% of all doctors in the United States accept Medicare. There is also peace of mind for clients knowing that they are not bound by state lines when it comes to where they can receive care.
Which Supplement Plans Should You Offer?
The most important thing to consider when deciding which plan you should focus on selling is what will work best with your clients and their lifestyles. It is also important to focus on who you prefer to do business with because it is important to have a strong relationship between all parties. Each plan has its benefits, so we have broken down our carriers in detail with the top bonuses for you so you can decide for yourself.
Humana Achieve, ACE, Aflac, Wellabe, Manhattan Life, Liberty Bankers and Allstate are some of Tidewater Management Group's Medicare Supplement products. They each fall within the top five or six within each state the carriers are contracted in
To view the rest of the Medicare Supplement carriers that you can contract with through Tidewater Management Group, click here.
AGENT TESTIMONIAL
What is a Medicare Supplement?Medicare Supplement Plans are just that - a supplement to your current Medicare plan. It is rare that Medicare covers everything your client needs, so medicare supplement insurance is the perfect plan to fill in those gaps.Medicare Supplement plans will help take care of most, if not all, of the expenses that Medicare recipients receive that Medicare currently does not cover. For example, a medicare supplement
Do You Know Which Scenarios Warrant Guaranteed Issue Rights?
If your client's coverage is changing through no fault of their own, then a Guaranteed Issue plan could be right for them. Also referred to as Medigap protections, guaranteed issue rights may protect your clients from medical underwriting. If this type of plan is necessary for your client, an insurance company:
Since health insurance companies often use health history and data on a prospective client's pre-existing conditions to determine whether or not he or she will be covered and the amount of coverage provided, guaranteed issue rights are in place to protect those who may not be eligible otherwise.
If your client needs a guaranteed issue Medicare Supplement, an insurance carrier will cover all pre-existing health conditions and will not charge for a Medigap policy due to health reasons.
There are seven scenarios in which prospective clients have a guaranteed issue right. This can be confusing for both the agent and the insured, so we have outlined each scenario below to make guaranteed issue plans easier to navigate. Read the full blog post that describes each of the seven scenarios in detail to learn more.
“If your client needs a guaranteed issue Medicare Supplement, an insurance carrier will cover all pre-existing health conditions and will not charge for a Medigap policy due to health reasons.”
Ronnie James
The Best Time For Clients to Purchase a Medicare Supplement Plan
Medicare states that the best time to purchase a supplemental plan is when your client first gets their Medicare Part B plan. That is because they do not have to answer any health questions. Should they choose to go without a supplement or go with an Advantage plan when they get Medicare, they could be declined based on health questions if they want a supplemental plan in the future.
Since none of us have a magic crystal ball, the supplement plan offers certainty of benefits, less risk, no networks and peace of mind for the future. The question really is “why wouldn’t my clients want a Medicare Supplement plan?”
How to Prepare for Medicare Supplement Rate Increases
Rate increases are expected with Medicare Supplements, and it is important to make sure your clients are aware of them as well. As an agent, it is part of your job to make sure that your clients are not blindsided, because it will ultimately come back on you. Set realistic expectations regarding Medicare supplement rates because rates so typically go up every year.
Agents often neglect to tell their clients about these rate increases in order to make the initial sale, but this will come back to bite them in the long run when the clients decides to work with another insurance agent after being blindsided by rate increases. Read the full blog post to learn more about how to discuss rate increases with your clients.
What to look for in a Medicare Supplement Company
As an agent that is looking for a plan to offer to customers, find a company that is:
Other things to look for are companies that provide household discounts and have no application fees.
History of Medicare Supplement Plan Changes
Medicare supplement insurance was brought under federal oversight after Congress passed the Omnibus Reconciliation Act of 1980. This introduced Medigap plans A-J.
In 1998, high deductible plans were added to Medicap plans F and J, which brought the new total of Medicare Supplement plans to 12.
Medicare Prescription Drug Improvement and Modernization Act of 2003 initiated the first significant changes that would go into effect in 2006. Prescription drugs were included in Medicare supplement plans under Medicare Part D. Because of the modification, standard plans H, I, and J could no longer offer prescription drug coverage. It also introduced the first cost sharing plans, Medigap Plan K and Medigap Plan L.
With the new plans, a percentage of covered expenses was paid by the policyholder until a maximum out-of-pocket limit was reached.
Starting in 2020, Medicare Supplement Plans can no longer offer first dollar coverage. Specifically, they can’t cover the Medicare Part B Deductible. Medigap Plans C and F will be phased out.
Are You Ready to Sell These Fantastic Medicare Supplements?
Are you ready to get contracted? It's easy! Simply fill out this form to get started. If you have any questions, don't hesitate to give us a call at 888-622-9122. Our expert agent support team is always ready to help.
Check out all the carriers that you can contract with through Tidewater, and don't forget to sign up for our VIP Portal for all the latest industry news.
