Are med sups doomed ?

[SamIam]

The whole higher commission med Supp agents love to spew is completely wrong. It's a tool they use when explaining to clients why they don't offer MAPD. Most agents sell non t65's and make much less per sale than a med Supp agent.

I actually do offer Medicare Advantage it has its place but I find it hard to believe anyone would sell Medicare Advantage under most circumstances if it wasn't for the commissions especially when they are turning 65. I sell Medicare Advantage about 10% of the time, Usually it's because of certain medications or sometimes costs. Just based on the number of providers alone who would put their parents on a MA plan if they had a crystal ball knowing something was going to go wrong that year. I would pick a High Deductible plan G over an Advantage plan any day. BTW I sell more High Deductible Plan G than I do MA

 

[Chazm]

I actually do offer Medicare Advantage it has its place but I find it hard to believe anyone would sell Medicare Advantage under most circumstances if it wasn't for the commissions especially when they are turning 65. I sell Medicare Advantage about 10% of the time, Usually it's because of certain medications or sometimes costs. Just based on the number of providers alone who would put their parents on a MA plan if they had a crystal ball knowing something was going to go wrong that year. I would pick a High Deductible plan G over an Advantage plan any day. BTW I sell more High Deductible Plan G than I do MA

And you don't live where I do.

 

[SamIam]

They are pretty comparable.

On your MA example, the HRA is a one time deal and usually unless you switch their plan again. The HI plan is also heavily paid commission in the first year and not much after so:

601 + 70 + 200= $871 Year 1
301 Year 2
301 Year 3
301 Year 4
301 Year 5
301 Year 6

Total : $2,376

vs. Supplement

300 + 92
300 + 46
300 + 46
300 + 46
300 + 46
300 + 46

Total: $2,122

Also if you rewrite the supp after a few years, it starts the 6 years over and the commission amount will be higher than it was.

For the first 6 years on a Med sup based on a premium of $99 you're making about $1568 and that isn't the cheapest carrier. Now if I compare it to a High deductible plan G the best plan on the market which is what I have my mother on the comparison is not even close.

 

[Midlevel]

For the first 6 years on a Med sup based on a premium of $99 you're making about $1568 and that isn't the cheapest carrier. Now if I compare it to a High deductible plan G the best plan on the market which is what I have my mother on the comparison is not even close.

WTH anyone would choose a high ded Med Sup over a MAPD is beyond me. To each their own I guess. You do you.

 

[DS4]

WTH anyone would choose a high ded Med Sup over a MAPD is beyond me. To each their own I guess. You do you.

Ok, I'll play.
I have ONE MA to sell, $30/ mo, skinny network, $10k MOOP.
HD G + Part D is a slam dunk.
What you sell and can sell is determined by geography.

 

[sman]

For the first 6 years on a Med sup based on a premium of $99 you're making about $1568 and that isn't the cheapest carrier. Now if I compare it to a High deductible plan G the best plan on the market which is what I have my mother on the comparison is not even close.

You do realize not every location has $99 Plan G rates, right? I just wrote a T65 yesterday who lives in my same city, rate is $147. Now if his wife goes with the same carrier when she turns 65, his rate will decrease. But this particular carrier still pays the commission on $147. That's $370 x 6 = $2,220. Add in the PDP and it's a minimum of another $342 over 6 years. This adds up to more than MAPD over the same 6 years.

 

[Dutch]

For the first 6 years on a Med sup based on a premium of $99 you're making about $1568 and that isn't the cheapest carrier. Now if I compare it to a High deductible plan G the best plan on the market which is what I have my mother on the comparison is not even close.

My average T65 is $300 commission on supp. It can sometimes range from $240-350 honestly.
Some people that I rewrite in their 70's or 80's are close to $500 commission

 

[Bob G]

You must be seeing the wrong people or slanting your presentation to the MAPD or maybe selling in a low income area. In my experience, 65% take Medsupp and 35% take MAPD (Nationally 48% are enrolled in Medicare Advantage). You must not be selling the upside of a Medsupp in that it's easier to use and generally more convenient. And you must not be showing that the average cost of a MAPD is higher than 4 visits to a doctor per year.

 

[Patrick Flammia]

Probably beating a dead horse here, but don't have time to read 15 pages of comments.

In states like Florida where the MOOP is very low on a MAPD, and med supps are expensive definitely a tougher sell. People still buy though, I'm probably 75% MAPD in FL. However, other states where MOOP's are $5k-$7.5k, but supps are like $100 per month, much easier sell. States like that I'm probably 75% supp, and the other 25% are mostly DSNP anyway.

I'm always going to do an unbiased presentation on both options and go from there. Doesn't make a difference to me what they sign up for as long as I know I did my job, and explained everything thoroughly. The one thing I don't want is them signing up through someone else because I didn't have everything to offer them.

 

[SamIam]

WTH anyone would choose a high ded Med Sup over a MAPD is beyond me. To each their own I guess. You do you.

If you understand how it works very easy. for a super low price $35 (stable rates) without having to deal with networks or having to fight the insurance companies (big problem with MAPD) or having the carrier involved in healthcare decisions. Medicare is still primary and your only paying 20% of the negotiated rate, so if the DR. is charging $100 the client is only paying $20. Max out-of-pocket is $2700. The best option out there. Yes, you make dramatically less on the Medicare side but tons of other selling opportunities and a lot of referrals.