Supreme Court Upholds Health Care Law | What This Means for You, the Insurance Agent

Putting aside politics and ideology what does this mean to those of us who work in the insurance industry, and specialize in the over 65 market? Well, to gain perspective, I always like to look at history, because if you don’t know where you’ve been it’s difficult to know where you’re going.

So let’s take a look back in time.

• 1965 – Medicare is enacted into law creating a national social insurance program, administered by the U.S. federal government that guarantees access to health insurance for Americans ages 65 and older. RESULT- INSURANCE AGENTS GOING OUT OF BUSINESS!!!

• 1993 – Omnibus Budget Reconciliation Act of 1993 (or OBRA-93[1]) became federal law that was enacted by the 103rd United States Congress and signed into law by President Bill Clinton. States react by leveling commissions being paid to licensed insurance agents selling Medicare Supplement policies. RESULT- INSURANCE AGENTS GOING OUT OF BUSINESS!!!

• 2003 – Medicare Modernization Actof 2003 signed into law by President George W. Bush producing the largest overhaul of Medicare in the public health program’s 38-year history. Pursuant to the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the compensation and business practices for insurers that offer these plans changed, and “Medicare+Choice” plans became known as “Medicare Advantage” (MA) plans. RESULT = INSURANCE AGENTS GOING OUT OF BUSINESS!!!

• 2010 – Affordable Health Care for America Act (or HR 3962) signed into law by President Barack Obama creating sweeping changes and effectively overhauling the country’s health care system and financing mechanisms (insurance). RESULT = INSURANCE AGENTS GOING OUT OF BUSINESS!!!

• June 28, 2012 – SUPREME COURT UPHOLDS HEALTH CARE LAW!!! RESULT- INSURANCE AGENTS GOING OUT OF BUSINESS!!!
Since 1965 there has been federal legislation enacted several times that have put insurance agents out of business, while insurance companies have paid, and continue to pay, untold millions of dollars in commission to agents selling health insurance.

Let’s see where we are today:

• 10,000 people turning 65 daily in this country making decisions regarding their health care coverage. LEADS!!!!!
• $3,000,000,000.00 in NEW MEDICARE SUPPLEMENT PREMIUM projected for 2012.
• The widest range of supplemental products, and most creative product line available, to a larger demographic of people enrolled in Medicare at any time since 1965.
• Annual Enrollment Period for Medicare Advantage on the horizon with the best products and best carriers since the program’s inception.
• Guarantee of people over age 65 of needing someone to navigate the Medicare Maze and assist them in the decision making process regarding their health care and coverage.

Today I had lunch with a lead expert and an insurance compliance attorney. We couldn’t stop talking about the various ways to capitalize on the news of today.
• The attorney – Will be soliciting new clients/insurance companies in order to advise them, and receive retainers, on the Affordable health Care for America act and its ramifications
• The Lead Expert – The ability to create more leads at less cost to help more agents see more prospects.
• Me & Senior Marketing Specialists – We will help you, THE AGENT, serve your clients and the over 65 market!!!

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

Medicare Advantage Versus Medicare Supplement | By Philip Warren of Senior Marketing Specialists

In the past few years there has been an ongoing debate, although the debate seems to be waning, regarding what product consumers should be using to supplement their Medicare program, Medicare Supplement or Medicare Advantage? Let’s start this post with a review of the numbers:

• Medicare Supplement – 10,000,000 policies in force
• Medicare Advantage – 14,000,000 people enrolled 

Medicare Advantage has enrolled 14 million individuals in the past seven years and is expecting growth again approaching 2013. Medicare Supplement sales projections for 2012 are expected to reach $3 billion annualized premium in new sales. It appears that both products have found a solid position in the market. What Medicare Advantage has accomplished is penetrate deeper into the demographic of those over 65 years in age who are enrolled in Medicare but who did not always purchase a Medicare Supplement. We’ll review that in our next post. For now let’s take a case in point: I received a call from a client of mine a couple of weeks ago saying he was turning 65, retiring and exiting his existing group coverage from work. This call was different in the fact that my client suffers from colon cancer. Since he is guaranteed the right to purchase any program supplementing Medicare, we had a long discussion. I advised him, premium not being an issue in his case, to purchase a Plan F Medicare Supplement. Why???

• His health is not good and he is experiencing huge costs treating cancer.
• This plan offers guaranteed renew-ability, so his policy cannot be cancelled regardless of his health.
• It would help take the stress off of him and his family regarding paying for cancer treatments.

Had he been healthy and coming off of his group plan, then a Medicare Advantage plan may just as well have fit his needs, especially with no premium and a “pay as you go” program. That’s what we’ll discuss in our next post. The fact is both Medicare Supplement and Medicare Advantage now have a place in our market and practices.

Shut Up & Listen | Sales Tips for Insurance Agents

Rachel Brocksmith, a Marketer at Senior Marketing Specialists, recently read an article titled “Shut Up for a Second: Understanding Buying Signals”. She recognized that the information in that article would be helpful to our agents. So, you will be glad to know that she has summarized that article and you can read the main points below! 

·        Selling is not a process of convincing someone to buy. You learn what the prospect wants.

·        Professional salespeople “listen” people into buying and probe for needs and wants.

·        Most sales are lost because of missed buying signals.

·        Most successful sales are a complete accident.

·        70% of sales are lost because of not knowing when to close.

·        A simple question of “what do you think?” may be all it takes to close a sale.

So, what do you think? Would you agree or disagree with the points above? We would love to hear what you have learned from your experience in the insurance field!