Part D Sales on Med Supps

[aheff]

I am newer in the MedSup business-enjoying it. Why do agents here run away from the Part D sale? I realize that the real $ is in the Sup sale, Part D sale commissions are peanuts and a more complicated decision based on meds, etc. BUT...
1. I'll make a nice commission on my total Part D sales
2. Here in PA, AARP seems to run head and shoulders better than other Part D Plans. For the Part D component, I pull out their Medicare and You, review the different plans and their ratings, show that AARP is one of only two five star plans, don't profess to be an expert on Part D, etc.
3. Keeps competition away and client expects that both Sup and Rx are taken care of.
Again, I haven't had issues with Part D- YET!

 

[Frank Stastny]

Re: Part D

I'm not sure "run away" would be what most do. It's most likely that they "don't want to run into" all the CMS crap that comes with being able to sell them. There are other reasons, no not commission, but that's probably the main reason I don't mess with them.

Are you strictly adhering to all of their goofy rules and regs when you present one?

I suggest they visit with their pharmacist. The way I explain it to them makes sense and they thank me for the recommendation.

No, I don't have agents coming in behind me stealing my Med Supps. That has never been a concern.

 

[HealthGuy]

Re: Part D

Frank: doesnt it make you look inept if another agent does part d and you dont? No disrespect just wondering.

 

[Frank Stastny]

Re: Part D

Frank: doesnt it make you look inept if another agent does part d and you dont? No disrespect just wondering.

No, not at all. There are a lot of other things that could make me look "inept". haha

I explain to them that an insurance agent is not an expert on prescription medicine, their pharmacist is. That every agent has to go through a lengthy certification process for each company they represent and that no one agent is going to certify with all the PDP plans in the state.

(Walgreens in town has a big sign next to the prescription drug counter that says bring us you list of meds, we will help you find the best plan for the unique list of meds you take.)

I also tell them, "most agents are only going to recommend the plan that they earn a commission on and that may or may not be the best plan for them". (In my experience I see that happen a lot.) That statement really gets their attention and is going to make them leery of any agent who is pushing a PDP plan.

I also let them know that if they have problems or their pharmacist can't or won't help them, all they have to do is pick up the phone and give me a call and I will help them find the best plan currently available.

Everyone I have made that suggestion to thanks me for the recommendation and I effectively cut other agents off at the knees who think they can sell them a PDP plan and roll my Med Supp. It hasn't backfired on me yet and I have been doing it that way since the second year the PDP plans were available.

 

[HealthGuy]

Re: Part D

Thanks Frank, good logic - seems to work here....However, I do know other guys that will do the part D and get their foot in the door just helping people with it - and time and time again they roll a lot of the supplements the people have just because they help them find a more suitable part D plan...It really works for a few guys I know - they get the part D and then the rest of the supplements. If they aren't stealing your business, they are stealing somebody else's using this tactic. They see the part D as the shortest path and easiest way to get to requoting the supplements in the house. I don't know who is right about this - your methodolgy or the other guys who are doing the D.....and then getting the supplement.

 

[Russ]

Re: Part D

I am newer in the MedSup business-enjoying it. Why do agents here run away from the Part D sale? I realize that the real $ is in the Sup sale, Part D sale commissions are peanuts and a more complicated decision based on meds, etc. BUT...
1. I'll make a nice commission on my total Part D sales
2. Here in PA, AARP seems to run head and shoulders better than other Part D Plans. For the Part D component, I pull out their Medicare and You, review the different plans and their ratings, show that AARP is one of only two five star plans, don't profess to be an expert on Part D, etc.
3. Keeps competition away and client expects that both Sup and Rx are taken care of.
Again, I haven't had issues with Part D- YET!

It's because of the low commission. At least with you writing them they have an agent to call if any problems come up. Get ready...after January 1st!

I got certified with AARP in about 30 minutes to an hour. I've written about 80-100 PDP's with them this AEP. About a fourth of them are true-up plans...with double the commission. Nice little Cristmas bonus.
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Thanks Frank, good logic - seems to work here....However, I do know other guys that will do the part D and get their foot in the door just helping people with it - and time and time again they roll a lot of the supplements the people have just because they help them find a more suitable part D plan...It really works for a few guys I know - they get the part D and then the rest of the supplements. If they aren't stealing your business, they are stealing somebody else's using this tactic. They see the part D as the shortest path and easiest way to get to requoting the supplements in the house. I don't know who is right about this - your methodolgy or the other guys who are doing the D.....and then getting the supplement.

I just had a lady call me on a PDP plan. She was a referral from an existing client. She has Continental Life for a med-supp. Unbeatable premium...for now.

 

[GreenSky]

Re: Part D

It's because of the low commission. At least with you writing them they have an agent to call if any problems come up. Get ready...after January 1st!

I got certified with AARP in about 30 minutes to an hour. I've written about 80-100 PDP's with them this AEP. About a fourth of them are true-up plans...with double the commission. Nice little Cristmas bonus.
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So, do you think that the extra $3K you made was worth the effort? (I assume these are all new clients to you).

Rick

 

[Frank Stastny]

Re: Part D

...However, I do know other guys that will do the part D and get their foot in the door just helping people with it - and time and time again they roll a lot of the supplements the people have just because they help them find a more suitable part D plan...

I can see how that can happen especially to agents who's only interest was to write the Med Supp app. Kind of "slam, bam, thank you mam" them. I don't sell that way, that could account for the difference.

I would have to say that my clients don't let them in the door. If another agent claims to have a "better deal" they will usually call me. I tell them that it is probably just a ploy to "get in the door". I caution my clients about how insurance agents operate.

There is a lot more to client retention than just helping them with their drug plan.

 

[Russ]

Re: Part D

So, do you think that the extra $3K you made was worth the effort? (I assume these are all new clients to you).

Rick

Yes...

Over half of them had AdvantraRX with me...which won't be available in Florida in 2011. I could have done nothing and all of them would have been put on AdvantraRX's sister company...First Health...in 2011....at $81 a month.

The plan does good on generics, but most people don't like paying $81 a month for a PDP plan. Plus they would have had no agent. I'm not certified to write First Health.

Through me they at least have an agent if they need any help.

 

[GreenSky]

Re: Part D

Yes...

Over half of them had AdvantraRX with me...which won't be available in Florida in 2011. I could have done nothing and all of them would have been put on AdvantraRX's sister company...First Health...in 2011....at $81 a month.

The plan does good on generics, but most people don't like paying $81 a month for a PDP plan. Plus they would have had no agent. I'm not certified to write First Health.

Through me they at least have an agent if they need any help.

This is not meant as a put down because you are indeed servicing your clients' needs quite well.

But just remember that only about 40 of your enrollments are new to you. So your commission "bonus" compared to last year is about $1,200.

This is why agents don't bother with Part D.

Rick