Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
A stethoscope with a heart

Life Health > Health Insurance > Medicare Planning

Medicare Plan Producer Group Finds Coverage Review Gap

Your article was successfully shared with the contacts you provided.

Some insurance agents who sell Medicare supplement insurance plans may be missing a marketing opportunity, according to new survey data from the American Association for Medicare Supplement Insurance.

Only half of the Medicare supplement, or Medigap, agents who participated in a voluntary AAMSI survey said they review clients’ Medigap coverage every year.

Another 29% said they review clients’ coverage “from time to time.”

About 20% said they review the coverage only if clients reach out to them, and 1% said they rarely or never review clients’ coverage.

AAMSI provides a web directory that consumers can use to find agents in their communities who sell Medigap policies. The participants in the survey were 225 agents in the AAMSI directory who have been selling Medigap coverage for at least five years.

Medigap plans fill in many of the gaps in standard Medicare Part A inpatient hospitalization coverage and Medicare Part B outpatient and physician services coverage. For many clients, combining Medigap coverage with “Original Medicare” coverage serves as an alternative to signing up for Medicare Advantage plans.

Users of Medigap policies face little active insurer management of their use of care, and they do not face incentives to go to doctors and hospitals within a managed care plan’s provider network.

Because Medigap issuers can use medical underwriting in most states when policyholders switch plans, clients with Medigap policies who have health problems and who do not qualify for special enrollment opportunities may have a difficult time shifting to different Medigap policies.

But AAMSI found that 42% of the participating agents said the primary reason their clients switch plans is cheaper Medigap policies. About 41% said the primary driver is a shift from Medigap policies to Medicare Advantage plan coverage.

(Image: Adobe Stock)


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.