Best States to Sell Medicare Suppliments

[rago62000]

Hello, I am new to the Senior market and was hoping for some input. I would like to start selling Medicare Supplements; I live in Florida but would like to sell them in different states because the prices here are expensive... can anyone offer any input as to which states offer the best prices?

Thank You,

Richard Rago

 

[taterpeeler]

I hear California, Kansas and Michigan are good...

 

[wave828]

I hear California, Kansas and Michigan are good...

You have to dig even deeper than the state level, in most cases. For example, rates in Dallas/Fort Worth vary with a lot of companies based on ZIP code. People who live in Fort Worth pay about 10% more for the same coverage as people who live in Dallas. It's not enough to look at a whole state and their rates because rates will vary based on where a person lives.

Your decision to expand is sound, but I think you should look at more than rate. How will you be marketing? Willl you be buying a T65 list or a T67 list and banging the phones, or will you be paying for mailings? If you're paying for mailings, you'll want to find out what areas of the country have better response rates than others so you can bring your lead cost down. In conjunction with the market conditions (competitors, pricing, etc.), this might be a little less painful way to approach things.

 

[taterpeeler]

For example, rates in Dallas/Fort Worth vary with a lot of companies based on ZIP code. People who live in Fort Worth pay about 10% more for the same coverage as people who live in Dallas.

really? I did not know that..... 10%?

 

[Frank Stastny]

Hello, I am new to the Senior market and was hoping for some input. I would like to start selling Medicare Supplements; I live in Florida but would like to sell them in different states because the prices here are expensive... can anyone offer any input as to which states offer the best prices?

Thank You,

Richard Rago

When looking at other states, you will have the most success in states that have a large rural population. Med Supps are most easily sold in rural areas as opposed to metro areas. I have found this to be true ever I first started selling Med Supps. You will also encounter fewer MA plans when prospecting in rural areas.

As an example, IL has a large rural population once the greater Chicago metro area is excluded. The last time I checked MA plans only had an 11% market share in IL. That 11% is mostly in the northern part of the state.

The premiums are also higher for Med Supps in metro areas than they are in rural areas and the people who live in the country are usually more receptive and easier to deal with.

I wouldn't go crazy licensing in a whole bunch of states. There are seniors who want Med Supps all over the country.

 

[rago62000]

Thank you, for all of the sound advice!
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You have to dig even deeper than the state level, in most cases. For example, rates in Dallas/Fort Worth vary with a lot of companies based on ZIP code. People who live in Fort Worth pay about 10% more for the same coverage as people who live in Dallas. It's not enough to look at a whole state and their rates because rates will vary based on where a person lives.

Your decision to expand is sound, but I think you should look at more than rate. How will you be marketing? Willl you be buying a T65 list or a T67 list and banging the phones, or will you be paying for mailings? If you're paying for mailings, you'll want to find out what areas of the country have better response rates than others so you can bring your lead cost down. In conjunction with the market conditions (competitors, pricing, etc.), this might be a little less painful way to approach things.

thank you, are there websites that break down prices Vs. zipcodes/cities?

 

[Frank Stastny]

Thank you, for all of the sound advice!
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thank you, are there websites that break down prices Vs. zipcodes/cities?

Not that will give you accurate, current premiums.

All companies now break rates down by zip code. Some states have a much larger break down than others.

If you are just starting in the Med Supp business I would suggest you focus only on rural areas to begin with. It will be less discouraging and you will make more sales initially.

You will struggle trying to make money after paying "lead" costs if you plan to use direct mail. It will cost you around $400 to do a 1,000 piece mail drop. You can realistically expect to get a 8 to 12 responses per 1,000 sent out. The majority of them will have no recollection of having sent the card in when you call them.

Unless you have a lot of money to spend you may run out of money before you start making money to put in your pocket.

I don't sell Med Supps. I educate them using factual information presented logically so they can understand it and guide them to the company and plan that is the best investment of their premium dollar. As an agent I can't sell them anything different than any other agent can sell them. Med Supps are standardized.

The only thing you have to "sell", that no other agent does, is "you". Educate your prospects and sell yourself. If there is a key to being successful in the Med Supp market I believe that is it.

 

[rago62000]

Not that will give you accurate, current premiums.

All companies now break rates down by zip code. Some states have a much larger break down than others.

If you are just starting in the Med Supp business I would suggest you focus only on rural areas to begin with. It will be less discouraging and you will make more sales initially.

You will struggle trying to make money after paying "lead" costs if you plan to use direct mail. It will cost you around $400 to do a 1,000 piece mail drop. You can realistically expect to get a 8 to 12 responses per 1,000 sent out. The majority of them will have no recollection of having sent the card in when you call them.

Unless you have a lot of money to spend you may run out of money before you start making money to put in your pocket.

I don't sell Med Supps. I educate them using factual information presented logically so they can understand it and guide them to the company and plan that is the best investment of their premium dollar. As an agent I can't sell them anything different than any other agent can sell them. Med Supps are standardized.

The only thing you have to "sell", that no other agent does, is "you". Educate your prospects and sell yourself. If there is a key to being successful in the Med Supp market I believe that is it.

again,

Thank You for all of your support!

 

[walleyeb1]

Frank

Illinois is the absolute worst state in the country to sell med sups in. Especially the downstate area why in the world would you give someone that advise.

 

[Chazm]

Why is it so bad there?

And to the OP, yes FL is HORRIBLE....Please don't sell in this state. VERY VERY VERY bad