- 608
It seems everyday I am contacted by agents currently selling Med. Advantage, that want to sell Final Expense over the phone. They tell me things have changed a lot. What is it that is driving agents away from selling Med. Advantage?
Why Are So Many Med Advantage Agents Calling?
- Thread starter ims01
- Start date
- 11,997
Are you joking?
Here is the short list:
Reduced commissions
Less competitive products
Extremely restrictive marketing rules
Hang time on getting paid reduced commissions
Current health bill that passed cuts funding to programs that are already providing less and less value to seniors.
Here is the short list:
Reduced commissions
Less competitive products
Extremely restrictive marketing rules
Hang time on getting paid reduced commissions
Current health bill that passed cuts funding to programs that are already providing less and less value to seniors.
Exactly. And also CMS, the entity that regulates Medicare sends secret shoppers to try and bust you for stupid stuff like not holding the provider directory up in the air for your prospective clients to see. It's not worth it anymore.
- 15,319
I keep hearing agents make that blanket statement. I'm still making a damn good living helping people in CA (mainly duals) regain many of the benefits dropped by Medicaid (Medi-Cal) last summer. I know others doing the same thing. For many people, paying $200+ per month for a med supp might represent 15-25% of their monthly income. A zero premium MA with limited exposure for expenses helps, not harms many of them.
MA plans are more than viable in CA. I realize that those agents in other states don't have the same opportunity. I guess I should be thanking those of you that have left this part of the industry. Less competition means more business for me.
I see no more liability with an MA plan than there is with IFP, group, or any other insurance. I realize (and sell) that Med Supps really have little or no liability but the fear of helping people with the product that fits for them, be it a supplement or MA, should not be the deciding factor.
Rick
- 11,997
I agree with Rick in the sense that I still believe there is a market to make money with Medicare Advantage, but it's a diminishing market that I have little confidence in for longterm growth. The reality is that there were also thousands and thousands of "MA Agents" that couldn't close a door if the wind blew it shut but were able to accidentally make a living selling Medicare Advantage plans. Most of the ones leaving in a panic are ones that never really were doing well before as a result of their sales ability, it was a right time/right place situation.
To go back to the original post, I'm not sure what makes them want to transition from MA to FE over the phone. Personally I think the FE market is going to be getting hammered even harder than usual over the next few years here when agents that leave MA head over to it as a way to make a living and slowly realize that regardless of the "success" they had in the MA business, selling life insurance is an entirely different sale and it actually requires work.
To go back to the original post, I'm not sure what makes them want to transition from MA to FE over the phone. Personally I think the FE market is going to be getting hammered even harder than usual over the next few years here when agents that leave MA head over to it as a way to make a living and slowly realize that regardless of the "success" they had in the MA business, selling life insurance is an entirely different sale and it actually requires work.
- 15,319
This is a true statement. I'm doing what I can now with the belief that I have maybe 12-14 months left in the MA business.
The reason many agents are moving to FE is because they believe it's just as easy as when they moved people into MA plans. It's not an easy business and 80% of them (maybe more) will fail. I already know that I would prefer to avoid FE as my primary income source.
As for me, I'm already working on Plan B and have no doubt I'll do very well.
The "trick" is that you need to be helping people rather than selling them.
Rick
- 14,808
Rick - sounds like you're taking advantage of an opportunity. When something's "easy" the agents come out of the woodwork.
Now that selling MA isn't easy most of the "I need an advance next week" agents have moved onto...well, whatever gets them that advanced check next week and the next promise of "easy riches" which appears from reading this forum to be selling FE from home.
The same will likely happen to the health insurance market. It'll end up heavily regulated, commissions will come in slow (since they'll be regulated by the state) and when agents can't slam someone into the "Emerald Saver Plan Plus" and get that 20% commish next week they'll all blow out. Well, except for me.
Now that selling MA isn't easy most of the "I need an advance next week" agents have moved onto...well, whatever gets them that advanced check next week and the next promise of "easy riches" which appears from reading this forum to be selling FE from home.
The same will likely happen to the health insurance market. It'll end up heavily regulated, commissions will come in slow (since they'll be regulated by the state) and when agents can't slam someone into the "Emerald Saver Plan Plus" and get that 20% commish next week they'll all blow out. Well, except for me.
- 5,058
MA plans vs Med Supps--
I don't know where some of you get your leads....except maybe if your cold calling/doing direct mail drops and can filter for income?.....but out of the 8 or so prospects I have spoken to in the last month (ind health internet leads) about Medicare, only one was able to buy a med supp for one reason or another (and that was an under 65 disability app).
The last one I spoke to yesterday is turning 65 in August and can not afford a $160+ med supp, out of her $1k a mo income.
I also spoke to a fella that just moved from CO to FL, had a RMHP MA for $41 a month and is oon here in FL except for catastrophic coverage, and can't spend $200 a month for a med supp.
I don't know where some of you get your leads....except maybe if your cold calling/doing direct mail drops and can filter for income?.....but out of the 8 or so prospects I have spoken to in the last month (ind health internet leads) about Medicare, only one was able to buy a med supp for one reason or another (and that was an under 65 disability app).
The last one I spoke to yesterday is turning 65 in August and can not afford a $160+ med supp, out of her $1k a mo income.
I also spoke to a fella that just moved from CO to FL, had a RMHP MA for $41 a month and is oon here in FL except for catastrophic coverage, and can't spend $200 a month for a med supp.
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Absolutely, you can still make money in the MA market. If others were like me it was my "get in the door product". MA is a small sale compared to other products but clients appreciated the personalized help I gave them so that I was able to offer other solutions to them. The reason why agents are turning from MA to FE? Selling final expense allows them to remain in the senior market and perhaps revisit some of their existing MA clients. If you sell FE to seniors you can work 10:00 to 5:00. That's nice if you have kids. With FE you can cold call all the live long day, send direct mail without getting it approved, and I believe its a good get-in-the-door product as well because it's inexpensive.
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