Medicare Supps Vs Medicare Advantage

In 2009, there were approximately 23% of the 45 million Medicare beneficiaries enrolled in an MA plan (that's a little over 10 million). So I really don't see how 14 million will get "pink slips" this year when there aren't even that many enrolled.

Even if every MA plan went away (which isn't happening), there wouldn't be 14 million. I would love to know where you got the "this year it is estimated that over 14 million...". I think someone may be feeding you some bad information.

Additionally, the MA commissions are per year and not a one-time deal. With that said, I tell EVERY potential client that I would recommend the Med Supp over the MA plan if it's in their budget. If not, then I'll put them in what I feel is the best MA plan for their specific situation.

Daytona_Guy said:
I think I've seen all of your posts.. so it's "replies" and not "replys".. but as for Medicare Advantage - it's usually a whopping one-time payment, in the $200-$400 range. Then that customer will one day get a letter from the carrier you put them with telling them that, since Obama is against funding the insurance companies for HMO/PPO/PFFS any longer, they will be forced to find another carrier or go back to original Medicare (and purchase a supplement).

Or you can avoid all of that by just selling them a Medicare Supplement in the first place where they'll be happy with it. That's what I do.

This year, it is estimated that over 14 million seniors will get these "pink slips" from their Medicare Advantage company. I know an agent that had 900 of them last year that she had to replace/move/re-sell because of the Medicare Advantage plan she had them in.

It will be a prime selling season for Medicare Supplements this year, no doubt. That said, I wouldn't recommend following the path of highest commissions with the least regard for the appropriateness of the sale. It just so happens that the most appropriate place for most folks (Med Supp) happens to also pay the most - full commissions for 6 (or 7) years, depending on the state (3 in MI).





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Frank Stastny said:
Commissions with Med Supps are going to vary from state to state and from FMO to FMO. Some pay higher commissions than others. You should not settle for a commission that is below street level.

Typically Med Supp companies pay first year commission for the first six years. (Florida is first year commission for the first six years.) Your average commission in Florida is going to be around $400 per year for six years.

I believe that MA plan commissions are now dictated by CMS. The most an agent can receive is $403 for the first year on someone new to MA plans and $202 for years 2 to 6. If they currently have an MA plan and the agent moves them to another MA plan the max commission they can receive is $202 for years 1 to 5.

Be cautious of anyone who wants you to assign your commissions to them. Don't do it.
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I have a guy here in KC who is trying to get me to sell MA plans at a local CVC this Nov. or whenever they start selling them.....$403 doesnt sound bad to me.....are there any drawbacks to selling them?
 
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