Selling Medicare Plans: A Beginner’s Guide

Seniors are the fastest-growing demographic in America today. This group contains a high number of people who require additional Medicare coverage beyond their standard plans. That’s why selling Medicare products, such as Medicare Advantage, Medicare Supplement, and Medicare Part D Rx plans, as an independent agent is currently a viable option.

Here’s your step-by-step guide to starting a successful career in Medicare:

To begin, seniors can obtain health insurance through three main plans that work with their Original Medicare Part A and Part B:

  • Original Medicare and a stand-alone Part D prescription drug plan
  • Medicare Advantage plan
  • Original Medicare and Medicare Supplement plans

You might want to sell all three types of Medicare products, or just one. At the beginning of the month in which a person turns 65, they become eligible for Medicare Parts A and B. The senior market is a huge industry to work in, with ten thousand people turning 65 every day in the United States.

Independent Medicare Insurance Agents own their businesses, and a successful agent understands that time, effort, and patience pay off in this business after just a few years. During this time, they are establishing a solid Medicare book of business, which will provide them with recurring revenue.

Medicare sales are more akin to consultations than actual sales. People understand that they require a plan that will cover 20% of the costs not covered by the original Medicare. Your role is to provide accurate information while also demonstrating and explaining the options available to people.

As a result, a large market, relatively easy sales, recurring revenue, and a sense of accomplishment from building your own business are just a few of the many reasons why someone would want to pursue a career in Medicare sales.

Those who are now employed as captive Medicare Insurance Agents who have experience and a well-developed network should consider becoming Independent Agents.

It can also be a great addition for agents who already have a book of business in Life Insurance and Property & Casualty Insurance.

Obtain the necessary licensing, certifications, and contracts to sell Medicare products.

According to state regulations, the pre-licensing course must be completed, and the official state licensing exam must be taken. Then you can apply for a license as a health insurance agent/broker.

Apply for Our Free Licensing Program

Agents must complete annual carrier certifications as well as the AHIP in order to sell Medicare Advantage and Part D Rx plans. Every year, AHIP – America’s Health Insurance Plans – certification is required. It is only required for MA and PDP plans. Some carriers, such as UHC, Aetna, and Humana, offer low-cost AHIP certification for $125.

As an up-line agency, Essential Care will assist you in locating the most competitive carriers in your area to contract with. To apply for a contract, agents must have E & O insurance.

Essential Care offers low-cost E & O insurance to agents. For more information, call our office at 347-971-3399.

Find the best Medicare carriers and products to sell

Medicare Insurance Agents can choose to sell all three types of Medicare products or just one. A perfect scenario would be to sell all three products. Make your choice based on important Medicare sale requirements, product demand in your area, and commission payment differences for Medicare Advantage vs. Supplement sales.

Medicare Advantage and Part D Rx plans require annual carrier product-training certifications as well as annual AHIP completion. Agents are not required to obtain annual certification or AHIP in order to sell Medicare Supplement plans, and they are not required to follow any specific rules in order to market them. MA and PDP plans must be marketed in a compliant manner.

Refer to the Products section of our website for a list of companies with which you can sign up via Essential Care.

You will have access to all major Medicare carriers in New York , New Jersey and Florida through Essential Care. You have the option of contracting with all or just a few carriers. Some carriers provide the most affordable Advantage plans, while others may provide a better Part D Rx plan and/or Medicare Supplement plan. Some carriers may have all three and have the best rates and coverage.

Each carrier has several Medicare plans, not just one, so you should research and be able to provide accurate, detailed information about the plans so that prospects can make the best decision about which plan to enroll in.

Download Medicare Sales Quick Start Guide

Medicare sales training

Essential Care provides hands-on training for all interested new and experienced agents through webinars, phone calls, and in-person meetings. To schedule a training day for yourself, please contact our office at: (349) 971-3399

All agents who work with Essential Care have access to the www.pfsinsurance.com portal, where they can find links to the annual product training and certifications offered by each carrier. The majority of them are accessible via pre-determined websites. Essential Care is here to assist and guide you throughout the process.

Our General Agency works closely with independent Medicare Insurance Agents to improve their performance in the Senior Marketplace. We will ensure that agents have the knowledge and sales tools they need to sell Medicare products more effectively and efficiently.

How Independent Medicare Agents get paid

CMS sets the commission rates for Medicare Advantage and Part D Rx sales every year. For new enrollments in 2021, the rate in New York and Florida is $539 and in New Jersey it is $607. Selling a Medicare Advantage plan to someone who does not currently have a MAPD plan is an example of new enrollment. However, if you sell to someone who already has a MAPD plan, you will receive half of the full commission. Renewals are paid half of the full commission each year and are also set by CMS. New sales during the Open Enrollment Period are paid in January. The commission payments are pro-rated throughout the year.

Agents receive between 12% and 20% of the premium for each Medicare Supplement sale, depending on the company and product sold. Two things to keep in mind: most companies do not pay for supplement sales to people under the age of 65. There are also limited payout years, which are typically 6 years for commission payouts before they stop.

Click Here to View Our Medicare Agent Compensation Webinar

Create a business plan

You should be self-disciplined, organized, and able to plan your actions ahead of time as an independent agent. Expectations and goals must be established. A strategy should be developed to achieve these objectives, which are things that must be done on a daily basis in order to be successful.

The following are some things to think about:

    • Your prospecting strategy and the amount of time you want to devote to it every day
    • The bare minimum of revenue is required to succeed in the early stages.
    • The number of sales per day required to meet revenue targets
    • The people with whom you should form relationships in order to generate more leads
    • The tools that you require in order to run your business

You should plan your business and then carry it out on a daily basis, rather than wasting your time on things that aren’t necessary for success.

Marketing and building your book

Once certified, set up your contracts through Essential Care to gain access to all carriers, and you’ll be ready to order marketing materials, enrollment applications, and other sales supplies. Please contact Pinnacle Financial Services at 800-772-6881 to place your order.

You are now a licensed, certified, trained, and contracted agent with ready-to-sell sales materials, and you are ready to market and sell Medicare products. One of the most difficult aspects of starting a business marketing Medicare products is locating eligible prospects. This isn’t always the case, since there are lead generation vendors that may help you get started by connecting you with a pool of Medicare prospects.

To be able to offer the best plan to a mail, online, or tele-sale lead, make sure you understand their financial and health insurance needs. You should be aware of the elements that influence premiums, such as the client’s age, location, gender, and tobacco use. In states like New York, however, each plan has the same rate regardless of the client’s status, whereas in underwritten states like New Jersey, these variables matter.

Aside from leads, there are other ways to build your book of business, such as referrals, existing clientele for individual and group health insurance, and seminar selling. A hardworking Medicare agent will amass a book of business of 500 clients in two to three years, providing him with a steady source of recurring revenue. Once an agent has reached the point where he can continue to grow and maintain his book of business, he is rewarded with a career that earns a consistent and growing income.

Join Essential Care Insurance Agency as an agent today and begin your successful Medicare sales career!

Get Contracted with Essential Care Insurance Agency

For more information, please contact our office at 347-971-3399 or send an email to rdashevskyy@essentialcare.info.

Essential Care Insurance Agency also provides Free Programs and Sales Tools for our Agents.

Please click on each link to learn more.