Medicare Sales Trend Upwards

While our economy is continuing on a flat-line and the politics are promising to fix all of society’s ills after the November election with no plan or substantiation of action one thing in our business is shining through; sales of plans for supplementing Medicare are exceeding the projections made by one of our marketing associates, CSG Actuarial. Here’s what Doug Feekin had to say in an article last week:

Turns out, the Medicare Supplement market is growing even faster than we originally predicted.

Last June, CSG Actuarial published its 2nd annual Future of Medicare Supplement Market research paper. We predicted the Medicare Supplement market would grow in 2012 to 10.4 million lives, generating $22.8 billion of premiums. Based on strong trends through August, however, CSG Actuarial predictive models are now showing the Medicare Supplement market will grow in 2012 to more than 10.5 million lives, generating over $23 billion of premiums. The number of 2012 Medicare Supplement lives is up more than 3% from 2011 while the premiums are up almost 5% over 2011.

Companies are recognizing this growth and pushing hard to achieve greater market share in the Medicare Supplement market. In the last 12 months, Aetna and Cigna have purchased Medicare Supplement blocks to increase their presence in the Medicare Supplement market. Also, more than 5 companies have entered or re-entered the Medicare Supplement market in 2012 and 3 other companies have re-priced their premium rates to get more competitive in the market

http://www.csgactuarial.com/news/medicare-supplement-market-growing-faster/

To add to this major carriers are telling us at Senior Marketing Specialists that, in the Medicare Advantage arena, they are predicting this AEP will be one of the best for overall sales to date. With new plans, lower out of pocket costs in all areas and increased network access they’re probably right.

So, what does this mean to the agent serving consumers in the Medicare market today for us at Senior Marketing Specialists:

·         Consumers still see Healthcare as the #1 concern in retirement. (ASK THEM)

·         We have more plans in more price ranges to supplement Medicare than ever before, Plan F, Plan G, Plan N, Plan HDF and Medicare Advantage.

·         Do we have better information and ways of communicating the facts? I think so!!!

·         When properly approached, from a place of knowledge, education and most importantly SERVICE consumers will be responsive to real solutions offered to them.

It’s reported that 60% of the Medicare Supplements sold are purchased in the last quarter of the year. At McNerney Management Group, which includes Senior Marketing Specialists and Barnes Insurance Group, that is our experience as well in the past few years.

With sales trending up will your business trend up as well? I hope so!!!

(This article was written by Philip Warren of Senior Marketing Specialists.)