The Medicare Market Potential

Yesterday I addressed a group of agents who had been in the Medicare Supplement Market for a very long time. They STILL sell Plans G&F primarily. They were resistant to including Medicare Advantage in their portfolio. Here are some of my remarks from that meeting:

In the last decade we have seen the face of the market for people participating in Medicare change more than any other time since Medicare’s inception in 1966. The variety of plan choices, growth in demographics, new models of sales distribution, fewer licensed agents, Health Care Legislation, pricing wars and constraints from carriers, and government cutbacks on Medicare benefit payments have created, not a problem, but an unprecedented opportunity for organizations marketing insurance to the over 65 market.

In 2012, we will have over forty-one million people in our country over age 65.

·         13,000,000 enrolled in Medicare Advantage programs.

·         10,000,0000 carrying private insurance (Medicare Supplement).

·         3,000,000 becoming eligible for Medicare benefits.

·         Countless retirees losing health benefits.

Google lists 88,700,000 results when key words “Medicare Plan Choices” are used.

·         Original Medicare

·         Medicare Supplement

·         Medicare Advantage

·         Continuation of Group Coverage

·         Prescription Drug Coverage

·         Low-Income Subsidy (LIS)

·         Programs of All-inclusive Care for the Elderly (PACE)

·         Medicaid

How many prospects were they ignoring due to their old, myopic view of the market???

Dallas County, where I live, Demographic Profile:

·         Ages 64 – 80: $0 - $100,00, All Households - 84,657

·         Ages 64 – 80: $20,000 - $100,000 Homeowners - 61,950


·         ADDITIONAL PROSPECTS - 22,707

·         27% of market potential being ignored

In the last quarter of each year it’s reported that 60% of Medicare Supplement sales for the year will be made. And we all know the impact of AEP on Medicare Advantage. So this begs the question: WILL WE/YOU CHANGE THE WAY YOU LOOK AT AND APPROACH THE MARKET AS WE ENTER THE FOURTH QUARTER????

The business is out there!!! It’s our job to go get it!!!

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