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Office Hours with Ronnie James June Recap

In case you missed June’s call or want to revisit Ronnie’s insights, we’ve got you covered. This recap gives you access to key takeaways from the call to ensure you’re ready to navigate market changes and updates.

“This is big news, and this is going to be a shake-up for a lot of consumers and maybe for agents”

– Ronnie James, June 5th Office Hours

Ronnie shared a lot of insightful information during June’s Office Hours call. Today, we’ll recap what the big news is, along with industry updates, market changes, and other important topics.

If you’re an insurance agent committed to staying up to date on industry trends and providing top-notch service to your clients, our office hours are just for you. Continue reading to stay informed and ahead.

Main Points Covered

The main topics Ronnie covered during June’s call include:

  • Hospital Indemnity
  • Annuity Sales
  • Medicare Advantage
  • Health Savings Accounts

Refer to this as your “table of contents” for the recap!

Hospital Indemnity

“I’ve noticed no one size fits all…So, it’s going to be important that we diversify our products and portfolio….Hospital Indemnity has a lot going on and I encourage you to get in the game,” Ronnie said.

Ronnie encourages agents to offer Hospital Indemnity plans more. He described these plans as a “win-win“, for consumers and agents.

What makes Hospital Indemnity a “Win-Win“?

  • They are profitable for agents and good for the consumer
  • They fill the gaps of Medicare Advantage Plans
  • More carriers are coming into the market with these plans

To learn more about Hospital Indemnity, check out this read.

If you’re ready to offer these plans, start here.

Annuity Sales

Ronnie excitedly shared that annuity sales are booming right now! In fact, we saw a 53% increase of sales in the 4th quarter of 2024 compared to 2023¹. Ronnie attributes annuity market growth to the uncertainty surrounding the economy. Consumers are leaning towards multi-year fixed annuities because they provide a flat rate, no matter what happens with the market. This type of annuity also gives consumers the opportunity to take advantage of growth in the index.

In comparison, we are seeing a decrease in multi-year guaranteed annuities, but for the same reason. Consumers have anxiety about the stock market and want to put their money somewhere safe (again, this why we are seeing an increase in fixed annuities).

Last month, we wrapped up our Life and Annuity (LARC) Platform Training Series. Tap here for everything you need to know about LARC and start offering annuities with confidence!

Medicare Advantage

Fast-Track Certification

If you are an agent who wrote business last year, you may be eligible to do a fast-track certification. This certifies you for all products going through fast-track.

This is a great opportunity to be rewarded for your knowledge. It only takes a few moments, but you must score an 85% or higher to pass. Otherwise, you will have to enroll in the certification that takes more time to complete.

Medicare Advantage Good News

Walmart has decided that Medicare Advantage members can now download the Walmart app to their smart device and input their benefit card information from their MA plan.

Why is this good news?

  • If members have OTC benefits, they can shop them right from the Walmart app
  • Allows members to specifically search for items that are covered under their OTC benefits
  • Streamlines the process for MA members to maximize their OTC benefits
  • Seniors can easily pick up their medications or even have them delivered to their door

Medicare Advantage Changes

This is the big news we talked about in the beginning…

The Value Based Income Design (VBID) model is terminating in 2026 for Medicare Advantage plans. The VBID model gave carriers a lot of flexibility for clients to use for food cards or utility cards, to help pay for drug costs, and even potentially eliminate drug costs on some of the CSNPs, DSNPs, and LIS plans. Those benefits are being removed and are now going to fall under what’s called an SSBCI (Special Supplemental Benefit for the Chronically Ill).

What exactly does this mean?

For example, individuals who may have gotten food cards this year are going to have to prove that they have one of the qualifying chronic diseases to continue getting them…An individual cannot just receive the food card benefit because they have low income.

Qualifying conditions can vary by carrier. The most common ones that are going to be recognized by Medicare include:

  • Cardiovascular disease
  • Heart failure
  • Diabetes
  • Cancer
  • End stage renal disease
  • Dementia

SSBCI benefits will not help drug costs. So, we can expect to see a lot more people paying for medications at retail pharmacies.

Advice on how to Adapt to Changes

“We must develop deeper relationships with customers so that we can sell Hospital Indemnity, a Cancer Plan, a Short-Term Care Plan, a Life Product, etc…,” Ronnie said.

Ronnie believes it is necessary to develop these relationships so that agents can adapt and move forward from recent changes.

Health Savings Accounts (HSA)

Ronnie shared how a Health Saving Account (HSA) can be very beneficial for clients who are not yet enrolled in Medicare.

A Health Saving Account (HSA) is great for younger, health individuals. An HSA is a tax-advantaged savings account that can be used to pay for qualified medical expenses. An individual must be covered by a HDHP (high deductible health plan to be eligible). An HSA is a great way to save for current and future healthcare costs, and is valuable for managing expenses for retirement and medical needs.

Beauty of HSA Funds:

  • Earnings grow tax deferred
  • Can be carried over and used while someone’s on Medicare
  • Funds can be passed to a spouse or beneficiary
    • If passed to spouse it is not taxable
    • If passed to beneficiary (child, grandchild, whomever) it is taxed

HSA’s can pay for:

  • Premiums for Medicare Part A, B, C, or D
  • Copayments on MA Plans
  • Deductibles with Original Medicare or Advantage Plans
  • Dental, Vision, Hearing, OTC Medications

HSA’s cannot be used to pay for Medicare Supplement premiums.

What happens when clients who have an HSA are ready to enroll in Medicare?

  • Anyone who enrolls in Medicare cannot contribute to an HSA any longer. It is important that you, as agents, communicate this to clients who still work over the age of 65.
  • Consumers need to discontinue their contributions to their HSA 6 months prior to taking Medicare or it would create tax implications.

Tidewater is Here for You

A lot of information can be overwhelming and we understand you might have questions from this month’s call. Remember, you’re not alone! Tidewater Management Group is here to guide you every step of the way. Our goal is to equip you with the knowledge, answers, and support you need to achieve great success, no matter what the industry throws your way.

Don’t hesitate to reach out to us at anytime! We’re not just your Tidewater team, we’re your Tidewater family…and we’ve got your back.

Sources

¹ Csgadmin. “Traditional Variable Annuity Sales Rise 53% in Q4.” CSG Actuarial, csg-actuarial-wordpress.appspot.com/news/traditional-variable-annuity-sales-rise-53-in-q4 2/#:~:text=Sales%20of%20traditional%20variable%20annuities%20increased%2053%25%20between%20the%20fourth,38%25%2C%20to%20%2435%20billion. Accessed 5 June 2025.

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