Medicare is a government-run health insurance program for people 65 or older and some people with disabilities. However, Medicare does have gaps in coverage, and that is where selling medicare supplement plans comes in.
If you do it correctly, Medicare sales can be a gratifying challenge. Not only can you make a difference in the world by helping people get quality healthcare, but you can also earn a great income doing something genuinely worthwhile.
Many people choose to supplement their Medicare coverage with a medicare supplement plan because they offer more comprehensive protection than medicare advantage plans. And, since Medicare supplements are standardized, it’s easy for agents to compare rates and find the best plan for their clients.
This blog post will discuss the winning tactics of selling Medicare supplement plans so that you can make the most of your Medicare sales career.
First, let’s get you caught up on everything you need to know about Medicare and Medicare supplemental plans. Let’s dive in.
- What Is Medicare?
- What Gaps Does Medicare Have?
- What Are the Two Options for Supplemental Medicare Coverage?
- Why Sell Medicare Supplement Plans?
- The Winning Tactics of Selling Medicare Supplement Plans
What Is Medicare?
Medicare is a federal health insurance program that provides coverage for people 65 and over and some people with disabilities.
There are four parts to Medicare: Part A covers hospital stays and other inpatient care, Part B covers outpatient care and preventive services, Part C is an optional managed care plan, and Part D covers prescription drugs.
In addition to Medicare Benefits, Medicare supplements can also be purchased to help cover things like copayments, deductibles, and coinsurance.
What Gaps Does Medicare Have?
As many Americans are all too aware, Medicare does not cover everything. Some pretty significant gaps in coverage can leave seniors with hefty bills.
Several holes in Medicare coverage can leave seniors with high out-of-pocket costs:
- Medicare only covers hospitalization (Part A) and doctor-related expenses (Part B), leaving beneficiaries responsible for other medical costs like prescriptions (Part D) and durable medical equipment.
- Medicare only covers 80% of Part B expenses, meaning seniors must pay the 20% copay. This can add up quickly, especially if you have to see the doctor frequently.
- Medicare has high deductibles for hospitalization, meaning beneficiaries could be responsible for thousands of dollars in expenses if hospitalized.
There are medicare supplements available that can help fill some of these gaps in coverage.
These supplements typically cover 100% of Part B expenses and offer additional benefits like prescription drug coverage. They can help seniors feel more secure, knowing they won’t have to worry about high out-of-pocket costs. This is where a Medicare supplement salesperson can be very useful.
What Are the Two Options for Supplemental Medicare Coverage?
When it comes to supplemental medicare coverage, seniors have two options available to them.
The first of those options is medicare supplements, also known as “Medigap coverage.” As the name suggests, medicare supplements cover the gaps in medicare coverage, ensuring seniors have minimal financial obligations for deductibles and co-pays.
A Medicare supplement plan provides almost total coverage with minimal out-of-pocket expenses for deductibles and co-pays when combined with a Medicare plan.
There are ten standardized plans available, each with different benefits:
- The most popular plans are Plans F and G, which cover the majority of the gaps in Medicare.
- Plan F is the most comprehensive option but also the most expensive.
- Plan G covers everything that Plan F does, except for the Medicare Part B deductible.
Seniors can also add a prescription drug plan to their supplement coverage. Supplemental coverage is a critical way to reduce out-of-pocket expenses, but it is not the only option available to seniors.
The second type of Medicare supplement plan is the Medicare Advantage plan, which offers some advantages over Medigap for eligible people.
- They’re usually less expensive since they’re offered by private insurance companies that contract with Medicare.
- They often include extras like prescription drug coverage and routine dental and vision care.
There are some downsides to Medicare Advantage plans as well:
- One is that they typically have more restrictive networks of doctors and other providers than Medigap plans.
- Another is that they tend to be more complex, with more rules and regulations to navigate.
So which type of plan is right for your client?
That depends on their individual needs and circumstances.
Selling Medicare Advantage plan may be a good choice if they’re healthy and price-conscious. Medigap may be better if they value simplicity and vast provider choices.
Whichever type of medicare supplement they choose, ensure they (and you) understand the pros and cons before enrolling
Why Sell Medicare Supplement Plans?
Selling Medicare supplement plans can be quite a lucrative career. The average Medicare salesperson makes about $58,000 per year. However, top-performing agents can reach six figures.
There are four great reasons to get into the Medicare Supplement market: Many prospects, standardized Medicare, and a built-in need for secondary Medicare medical insurance.
- There are many more potential customers in the market for medicare supplements than other products. With ten thousand new seniors daily, the market won’t be drying up anytime soon.
- Medicare itself is relatively standardized. This makes it much easier to understand both consumers and agents alike. They know what they’re getting with medicare supplement plans, so it’s an easier sell.
- There will always be a built-in need for secondary medicare insurance. While Medicare does cover a lot, there are still gaps that leave seniors vulnerable. That’s where medicare supplement plans step in and where you can step in to help your clients.
- Selling Medicare supplement plans is a great way to make a residual income. You can steadily build a six-figure residual income by selling medicare supplements in as little as three to four years.
11 Winning Tactics of Selling Medicare Supplement Plans
Selling Medicare supplements is a great business idea, but you will not be the only one out there. Many others have thought of the same idea as you and will be out there competing for clients. It would help if you had ways to differentiate yourself from your competition.
Try some of these winning tactics.
1: Position Yourself As An Authority
Regarding medicare supplement plans, positioning yourself as an authority is vital. Medicare leads already know that they need coverage, so your job is to be a source of information and help them choose the right policies.
You can do a few things to establish yourself as an expert:
- Make sure you have a solid understanding of medicare supplement plans.
- Be prepared to answer any questions leads might have. Finally, be patient and take the time to listen to what medicare leads are looking for.
- You can create a website and social media posts with lots of information. This gives people a sense of security that you know what you’re talking about and won’t sell them something they don’t need.
Another great way to establish authority is to write blogs about topics related to Medicare and what you are selling. According to the Content Marketing Institute, 61% of U.S. consumers have purchased something after reading a blog recommendation.
By following these tips, you can position yourself as an authority on medicare supplement plans and help medicare leads make the best choices for their needs.
2: Know Your Client’s Needs
If you’re in the business of selling medicare supplement plans, then you know that one of the most important things you can do is to get clear on your client’s needs. After all, how can you sell them a plan that’s right for them if you don’t even know their needs?
Getting clear on your client’s needs is not as difficult as it might sound.
To match clients with the ideal plans, you should ask them about their health, lifestyle, medical conditions, budget, and preferences. This will give you a good idea of which programs will suit their needs the most.
Once you have ascertained this, “selling” the techniques to your leads usually isn’t all that hard. Selling Medicare insurance is primarily about aligning clients with the right plans for their requirements.
Medicare supplement plans are relatively simple to understand. Still, if you let your client start the process or choose their supplement plan by asking questions, you will create confusion. Take control of the conversation by finding out their needs and directing them to the supplement plan that suits them best.
Additionally, if you answer their questions, you won’t be able to showcase your complete knowledge of supplemental Medicare plans. You might end up not selling the right plan for that person.
So next time you meet with a potential client, ask them about their medicare supplement needs. It could be the key to making a successful sale.
3: Show Them You Can Help
When it comes to medicare supplements, people are often skeptical about whether or not they truly need one. After all, Medicare is a government-run program, so shouldn’t that mean the government also regulates medicare supplement plans?
The answer is a resounding yes!
Medicare supplements are some of the most regulated products on the market. The best way to sell medicare supplements is to show your prospect how the government mandates them.
You can turn to page 69 in the “Medicare and You Handbook.” The handbook explains how medicare supplements only differ in price on that page.
From there, you can go through the education process with them. Medicare supplement plans are an excellent way to help people feel more secure about their medicare coverage. By showing you can help them, you’ll be able to make the sale and help them feel more confident about their range.
4: Pay For Leads
When selling medicare supplement plans, paying for leads can be an invaluable way to jumpstart your sales. Although organic lead generation methods are essential, you can’t always predict how many charges they will attract.
That’s where investing in leads comes in. Leads can help to fill in the gaps and provide a consistent source of potential customers. You can pay for ads on social media sites such as Google and Facebook.
Moreover, even after your organic marketing methods start producing leads, paid leads can still play an essential role in your business. You can use them to grow your client circle even larger.
So if you’re new to selling medicare insurance, and want to get ahead of the competition, don’t hesitate to use this tactic of investing in quality leads.
Networking can be an excellent tactic for selling medicare supplement plans. You can make valuable connections and gain referrals by attending events and networking (even virtual ones).
Even if the people you meet in your business community don’t need Medicare Supplement Insurance, they might know of a friend or family member who does.
Go to as many conferences, virtual events, and expositions as possible to get your name out there. A unique way to make a memorable introduction at networking events is by using digital business cards, which can be handed out virtually and in person.
So, get out there and start meeting people! It could pay off big time in the medicare supplement sales department.
6: Sell To Family and Friends
Selling Medicare supplements to family and friends is an excellent tactic for several reasons.
First, you already have a relationship with these people, which makes it more likely that they’ll trust your recommendations.
Second, you have a built-in audience, meaning you don’t have to go out and find potential customers. They’re right in front of you!
And finally, it’s cost-effective. You don’t have to spend money on marketing or advertising; you can tell people about your products and services in casual conversation.
Reminding friends and family that you sell Medicare supplements constantly is critical. They might not need them right now, but one day they will, and when that day comes, you want to be their first thought.
7: Engage With Your Audience
Engaging with your audience is crucial if you’re selling medicare supplement plans.
Make sure you respond to every query on social media, website, or email. This will show leads that not only are you a source of published information, but you are also available to answer questions.
According to research, 79% of consumers expect brands to respond to them on social media within the first day you contact them. This shows the importance of engaging with your audience and proving that you are there to help.
Engaging with your audience will help you foster relationships, generate new leads, and ultimately trigger more sales.
8: Build a Sales Funnel
Building a sales funnel is a great way to sell medicare supplement plans. By tying your marketing efforts together, you can ensure that you reach leads at all stages of the buyer’s journey.
Once your funnel is complete, it will help guide leads seamlessly through your offerings and touchpoints.
When you pitch different medicare supplement plans to them, they will already have a pre-established trust in you as an agent. So if you want a fantastic way to sell medicare supplement plans, building a sales funnel is the way to go.
9: Do Cold-calling with the right Screen Sharing software
Cold calling is a great tactic for selling medicare supplement plans. Cold calling can be highly effective if done right.
The key is to provide free information and set yourself up as the go-to for everything Medicare supplement-related. It would be best if you also took the time to prepare a script and have all your responses ready to answer prospects’ questions.
Stay organized and track all the leads you call using a tool like CRM software. Schedule this into your CRM solution if a lead requires a callback, and ensure you make all follow-up calls.
When you want to share details on the plans over the phone or show your license during a sales call, use software that does not require any setup for your prospects. Try to use CrankWheel when you are selling Medicare Supplement plans over the phone.
By using screen sharing software, you don’t need to set another appointment on Zoom or Teams and your prospects are not required to set up any software. That means that there is no risk that you might have to spend half an hour troubleshooting them over the phone to be able to see your screen. With CrankWheel, they can see your screen with one click.
The critical aspect to remember here is that your target audience is older and probably not tech-savvy.
10: Host Free Seminars
Need a unique tactic to sell Medicare Supplement Plans that will set you above the rest? Try hosting a free seminar on what Medicare covers, what it doesn’t, and how you can help fill the gaps.
The more information people have, especially seniors, the more at ease they will feel about purchasing supplemental Medicare insurance from you.
Hosting free seminars and events is a great way to generate high-quality leads. Not only does this allow you to reach new potential customers, but it also establishes you as the go-to Medicare Supplement Insurance expert in your area.
Plus, it’s an excellent opportunity to answer any questions people may have and help them make an informed decision about their coverage.
So if you’re looking for a way to boost your medicare supplement sales, consider hosting a free seminar in your community.
11: Ask For Referrals
As any seasoned medicare agent knows, referrals are some of the best leads you can get.
Not only do they come with a pre-established trust and sense of loyalty, but they’re also four times more likely to result in a sale, according to statistics. And when a referred lead makes a purchase, you can expect a 16% increase in profit compared to other leads.
In addition, referred customers tend to close sales 69% faster than other leads. Given these findings, it’s clear that generating more referral leads should be a priority for any medicare agent.
Unfortunately, many agents are hesitant to ask for referrals. However, you will probably be surprised how many clients will happily refer you if you ask. Don’t be afraid to put yourself out there and ask for referrals immediately.
As a medicare agent, you must be an authority on the subject. This will instill trust in your prospects and make them more likely to purchase a Medicare supplement plan from you.
To further boost your sales, engage with your audience, build a sales funnel, host free seminars, and ask for referrals. These are all excellent tactics for selling medicare supplement plans.
By following the winning tactics of selling medicare supplement plans, you’re sure to find success as a Medicare supplement plan agent!
About the author
Andrew Dunn is a serial business builder with over seven years of experience growing businesses. He is the founder of INDMND.com, providing valuable insights for business owners to leverage technology to 10x their businesses. He is passionate about scaling businesses using SEO, paid media, and remote teams.