The number of Baby Boomers entering their retirement years is, well, booming. Agents selling Medicare offerings will continue to see a steady stream of potential customers for years to come. While Medicare does cover a host of medical and health services, there are still many gaps in the coverage.
Enter Medicare Supplement, or Medigap, plans.
Generally, Medicare Supplement plans help cover coinsurance, copays and deductibles for Medicare Parts A and B. All offer some coverage for the first three pints of blood for a medical procedure, and others can help provide foreign travel benefits. And only two Medigap plans available today have out-of-pocket limits.
While many insurance agents sell Medicare Advantage plans, the sale of those plans is usually limited to the Annual Enrollment Period. Selling Medigap coverage can help agents produce a steady stream of income all throughout the year. And while many seniors choose to select Medicare Advantage plans, the Kaiser Family Foundation found that in 2018, only one in three (34%) Medicare beneficiaries – 20.4 million people – were enrolled in a Medicare Advantage plan. That leaves millions of other individuals with gaps in their Original Medicare coverage who could benefit from a Medigap plan.
Here are some other perks to selling Medicare Supplement Plans:
- Offering Medigap plans can help agents diversify their portfolios while complementing their existing product offerings
- Medigap sales can provide excellent opportunities for cross-selling other insurance plans
- Because they can be sold year-round, there is no annual enrollment for Medigap plans
- Most Medigap plans don’t require you to complete certifications before selling can begin
- Sales of Medigap plans offer competitive compensation – and could potentially provide renewal commissions for years to come
Ready to get started? To sell Medigap plans, agents generally must have a health insurance license and errors and omissions insurance. After that, your local Medicare FMO can work with you to help choose the best carriers and plans that fit your clients’ needs. Let’s add Medicare Supplement plans to your portfolio today! Email us at email@example.com or call us at 919-460-6073 to learn how.