Healthcare can be costly and complex, especially for Medicare beneficiaries and those nearing retirement. That’s why licensed sales agents and financial advisors should offer solutions that meet the unique health, lifestyle and financial goals of these individuals. In the world of insurance, where effective communication and strong personal relationships are key, success goes beyond acquiring new clients—it lies in retaining them. By understanding and clearly explaining the details of Medicare Supplement insurance plans, licensed agents can build trust and loyalty, enhance retention rates and increase sales. Being proficient in Medicare Supplement insurance plans—sometimes referred to as “Medigap” plans—helps position advisors not only to secure the financial future of clients, but also enhance their clients’ health and well-being.

Understanding Medicare Supplement

To help mitigate unpredictable expenses as clients enter their retirement years, licensed sales agents can inform them about Medicare Supplement plans that work alongside Original Medicare to offer more predictability for out-of-pocket costs. Medicare Supplement plans can help pay some healthcare costs that Original Medicare Parts A and B do not, like coinsurance, copayments or deductibles, and plans can be used with any doctor or hospital that accepts Medicare patients.

It’s important to note that Medicare Supplement plans do not coordinate with nor supplement the benefits of a Medicare Advantage plan. They can only supplement Original Medicare. Medicare Supplement beneficiaries must be enrolled in Medicare Parts A and B.

Additionally, while all Medicare Supplement plans are standardized—meaning the benefits for plans A through N are consistent regardless of the issuer—some individuals may benefit more from one plan versus another. Licensed sales agents must stay informed about the nuances of these plans to provide the most accurate and beneficial guidance to their clients.

Recommending the Right Plan for Clients

When it comes to Medicare, agents are encouraged to prioritize client needs, which can be supported through a diverse portfolio approach that accommodates both Medicare Advantage and Medicare Supplement. The decision on which specific plan to recommend should be guided by a client’s unique health needs and financial goals, bolstered by extensive knowledge and differentiation of both plan types and issuer offerings.

For example, Medicare Advantage plans may suit those seeking cost-effective, all-encompassing coverage through a distinct network of providers. Medicare Supplement plans, on the other hand, might be preferred by those seeking lesser out-of-pocket cost exposure, greater cost predictability overall, and greater freedom to choose any provider who accepts Medicare patients. Medicare Supplement insurance offers several plan choices with varying levels of coverage often sold alongside other coverage options to give your clients the full suite of coverage they want.

Medicare Supplement plans typically do not include prescription drugs, dental, vision or hearing coverage. Separate Part D prescription drug plans (PDP) and individual dental and vision plans are available to provide more comprehensive coverage for Medicare beneficiaries. Additionally, companies, like Humana, may offer access to discounts for vision and hearing services, among other potential discounts, commonly referred to as value added services, although advertising these services prior to sale is not permitted in certain states. Your clients may also want to consider ancillary plans for critical illness or hospital indemnity to help comprehensively address their needs. If it’s unknown whether these services are of interest to the client, it never hurts to present the information even if just for future consideration. This thoughtful advisement helps manifest trust with a client and allows agents to capitalize on sales opportunities outside of the Annual Election Period.

At the end of the day, cost for additional coverage comes out of the monthly budgets of beneficiaries, so transparency in these financial discussions is important. Clients want to feel in control and empowered about their health and financial decisions, so it may be beneficial to review historic premium increases and explain why “bargain-shopping” isn’t always the best option, as it could put them in a problematic long-term position should rates go up and if underwriting to another plan isn’t guaranteed. Consider reputable, well-known brand carriers for stability.

Choosing the Issuer 

Though Medicare Supplement plans are standardized, it doesn’t mean, for example, that all policyholders of a Plan N are paying the same price or receiving the same quality of service. The choice of issuer affects premiums, which can vary widely for the same plan based on the company’s pricing, marketing, and distribution strategy, the shopper’s location of residence, and available discounts. Additionally, an issuer’s reputation, financial stability and customer service can impact the satisfaction and overall value they will get from a Medicare Supplement plan. Some issuers may offer policyholders access to additional savings, such as wellness program discounts, adding further value to a client’s choice. Some states do not permit discussion of these discounts or services prior to applying. If it is permissible in the state, extra items and services like these can be included when presenting options. It should be noted they are not contractual benefits of a plan and subject to change.

At Humana, for instance, we provide access to valuable discounts on offerings like hearing aids and supplies. Humana also works with the SilverSneakers® program, providing many Medicare Supplement policyholders access to a network of more than 15,000 fitness facilities nationwide, along with a wide range of indoor and outdoor fitness classes and social gatherings. Additionally, Humana Well Dine® service is available to our Medicare Supplement policyholders, offering 14 free frozen meals sent to a client’s home after an inpatient hospital or nursing home stay. Humana offers both PDP and individual dental and vision plans as well.

When options are presented to clients, it’s important they receive a comprehensive overview of the plan, company reputation and benefits to help them make an educated choice that fits their health and financial goals.

Fostering strong client relationships through effective education and clear communication helps boost client retention and can directly increase sales, which means more commissions for agents. Satisfied clients tend to renew their plans, opt for additional coverage, and refer others, helping licensed agents build a sustainable business. Clearly explaining Medicare plans and offering personalized attention is essential for maintaining strong relationships. Remember that at the heart of retention lies the strength of the personal connections we foster.