MedicareWAA
Guru
- 454
The best advice I can give is to make it very easy for them to know how to contact you. You want them to remember you exist and know exactly how to find you. Wonderful retention and referrals will follow.
Walter
Can we agree that for the most part, Medsupp commissions are usually higher than MAPD?
- Thread starter selfgen
- Start date
Walter
It 100% depends on state and persistency of the book.
In Texas, if you have 100 people stay on the book 10 years, Med Supp pays less. By a lot.
Year 1
MAPD-$600
Med Supp-$350
Years 2-7
MAPD-$300
Med Supp-$300
Years 7-10
MAPD-$300
Med Supp-$50
It's also based on how agents are paid. Starving agents need the $600 upfront vs $25/month.
No idea on the 3 year thing. Huh?
I'm at 99% persistency (excluding death) way past the 10 year mark. If I'd put all these clients on MAPD, I would be making a lot more money.
So yeah, MAPD does make more money, assuming you keep your book.
I have both but it's 98/2 Med Supp, excluding my U65 Medicare
In Texas, if you have 100 people stay on the book 10 years, Med Supp pays less. By a lot.
Year 1
MAPD-$600
Med Supp-$350
Years 2-7
MAPD-$300
Med Supp-$300
Years 7-10
MAPD-$300
Med Supp-$50
It's also based on how agents are paid. Starving agents need the $600 upfront vs $25/month.
No idea on the 3 year thing. Huh?
I'm at 99% persistency (excluding death) way past the 10 year mark. If I'd put all these clients on MAPD, I would be making a lot more money.
So yeah, MAPD does make more money, assuming you keep your book.
I have both but it's 98/2 Med Supp, excluding my U65 Medicare
You don't write drug plans?
MedicareWAA
Guru
- 454
And in your future value estimates, you haven't even factored in the normal MA commission increases. MSUP rates are obviously fixed against initial premium, which means those sales effectively lose value each year while MA increases to at least offset a portion of inflation.
@Chazm asked about PDP. In your calculation, the revenue is not material.
I did add PDP.
Welcome to Texas. I'm making (average) $22 PMPM on Med Supp. (That was 2023 but it's not going up that much!). Plus the $100 on PDP in year 1.
Texas rates are lower than most states on Med Supp, so the percentage is irrelevant.
I write a ton of Blue. Especially if they are going in without the ability to get through UW. Less UHC/AARP because of the pushback on AARP.
And if they are current ACA on Blue, there's a discount. Then a HH discount. "Do you want Humana at $100 or Blue at $105?" That's a no brainer.
Over 10 years, it is 3x the commish. Plus, 80% of my clients either pay or appeal IRMAA. It's a little different
See above
I disagree with one very important thing in your whole argument . With mapd overall your dealing with much lower income overall . You yourself said a great % of your sup clients are irmaa . Upper income clients have much much greater persistency . Also overall when you write that supp that same sup stays on the books 3-6 yrs . You have to do very little to maintain the supplement side . With mapd there's 10's of moving parts . This yr its going to be tough .In many area's non renewing plans will mean you have to move many people . And yes in years past there weren't many significant changes in mapd so you could keep them in the same plan yearly . Formulary changes have no detriment on your supp business but they could have great changes on mapd plans. So overall the lower persistency on mapd has to be taken into account for your overall longer term comp.
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MedicareWAA
Guru
- 454
Not necessarily. More than 50% of people with Medicare have an advantage plan now, and the rate is higher among those new to Medicare. MA has become a product for all sorts of people … although MSUP is never for the very low income, obviously.
Actually the true #'s are 32 million with mapd and 14 million with sups. The rest have only original medicare , Part A or B only and tricare and Champus . No doubt more t65's are now getting mapd . But overall out of the 32 million mapds the avg income is far less than the avg of the 14 million medsups .
