Alyssa Lane
If you're interested in selling Medicare Supplement Insurance, also known as Medigap, there are a few things you need to know. First, you'll need to obtain the proper licenses, which can vary by state. Most states require a health insurance license, but some may also require an additional Medicare line or equivalent. You'll also need to secure appointments with insurance carriers by completing independent agent agreements or contracts, and working with a reputable Field Marketing Organization (FMO) can be advantageous. Additionally, it's important to understand the value proposition of Medicare Supplement Insurance, as it fills the gaps left by Original Medicare. With the right training and sales skills, selling Medicare Supplement Insurance can be a lucrative career, as thousands of Americans turn 65 each day and the need for supplemental insurance is growing.
| Characteristics | Values |
|---|---|
| License | A health insurance license is required to sell Medicare Supplement Insurance. Some states require an additional Medicare line or equivalent. |
| Exam | An individual must pass a health and life insurance exam in their state. |
| Certification | AHIP (America's Health Insurance Plans) certification is required to sell Medicare Advantage products. |
| Contracts | Independent agent agreements or contracts must be completed with insurance carriers. |
| Field Marketing Organization (FMO) | Working with an FMO can provide access to contracts with top insurance companies and ongoing support. |
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What You'll Learn
Get a health insurance license
To sell Medicare supplements, you need to obtain a health insurance license. This is a state-issued certification that permits you to legally sell health insurance products. Each state has its own rules and regulations for obtaining a license, so it's important to research the specific requirements for the state in which you plan to obtain your license. If you plan to work in multiple states, you will need to obtain a separate license for each state.
The first step in obtaining a health insurance license is to complete any required pre-licensing education. Most states require pre-licensing coursework before taking the licensing exam. This can range from $100 to $300, depending on the course provider and the state's requirements. Once you have completed any necessary education, you can register for the licensing exam. The exam fee typically ranges from $50 to $100 and covers the cost of the exam itself. After passing the exam, you will need to submit a license application, along with an application fee, which is usually between $50 and $200.
It's important to note that most states require licensed agents to be fingerprinted and to undergo a background check. This can usually be done on-site at the location where you take your exam. In addition, many states require continuing education classes to keep your knowledge of industry laws and procedures current. These classes may be mandatory for license renewal, which typically occurs every two years.
The entire process of obtaining a health insurance license can take several weeks, depending on the state's processing time. By following the steps outlined above and staying informed about state-specific requirements, you can successfully obtain your health insurance license and begin selling Medicare supplement insurance.
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Pass the AHIP exam
Passing the AHIP exam is a crucial step in becoming certified to sell Medicare Advantage products. AHIP stands for America's Health Insurance Plans, and the exam is an industry-recognized certification test. While the specific exam content is not publicly available, you can prepare by familiarizing yourself with Medicare Advantage plans, their benefits, and the regulations surrounding them. Here are some tips to help you pass the AHIP exam:
- Study the Medicare Advantage Plans: Understand the basics of Medicare Advantage (MAPD) plans, including their features, pricing, and how they differ from other Medicare options. MAPD plans generally have low or no premiums, assigned networks of healthcare providers, and a maximum out-of-pocket expense limit.
- Understand Regulations and Compliance: Medicare Advantage is a highly regulated product, and carriers will want to ensure that you correctly represent their plans. Stay up to date with industry regulations and compliance standards to ensure you are providing accurate information to your clients.
- Utilize Study Guides and Practice Exams: Search for reputable study guides and practice exams specifically designed to help you prepare for the AHIP exam. These resources can provide insight into the types of questions asked and help you identify areas that require further review.
- Stay Informed about Industry Trends: Keep yourself informed about the latest industry trends and changes in the Medicare space. This includes understanding the competitive landscape, emerging products, and any updates to Medicare regulations or plan offerings.
- Seek Additional Support: Consider partnering with a reputable Field Marketing Organization (FMO) that can offer training and support. Working with an FMO can provide you with valuable insights and resources to help you pass the AHIP exam and successfully sell Medicare products.
Remember that passing the AHIP exam is just one step in the process. Each carrier will also have its own unique certifications and requirements that you must complete to represent their specific plans. Additionally, remember that licensing requirements may vary by state, so be sure to research the specific rules for your state.
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Understand Medigap plans
Medigap, also known as Medicare Supplement Insurance, is an optional extra insurance policy that can be purchased from a private health insurance company. It helps to pay for out-of-pocket costs in Original Medicare (Parts A and B) that are not covered, such as deductibles, copayments, and coinsurance. These out-of-pocket costs are sometimes referred to as the "gaps" in Medicare coverage. Medigap policies are standardised, meaning the coverage is the same no matter which company sells it, although prices can vary.
To obtain a Medigap policy, you must be enrolled in Medicare Part A and Part B. The best time to buy a Medigap policy is during the Medigap Open Enrollment Period. It is important to compare the benefits of each lettered plan and decide which benefits you will need as you might not be able to switch policies later. The benefits in each lettered plan are the same, no matter which insurance company sells it. The price is the only difference between policies with the same letter sold by different companies.
Medigap policies are sold by private insurance companies and work in conjunction with Medicare Part A and Part B. There are currently 10 standardised Medigap plans to choose from, ranging from Plans A through N. These plans are different from Medicare Advantage (Part C) plans, which are an alternative way to obtain Medicare Part A and Part B benefits. Medigap policies cannot be used with Medicare Advantage and can only be used with Original Medicare.
In most states, if you miss your initial enrollment window, you may face higher costs or be denied coverage altogether. However, in California and Oregon, beneficiaries can enroll in a Medigap plan after their enrollment period has ended without having to answer health questions or undergo medical underwriting.
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Learn sales skills
To sell Medicare Supplement Insurance, you must first obtain the proper licenses. Licensing requirements vary by state, so it is important to research the specific requirements for your state. Some states may require additional certifications, such as an additional Medicare line, on top of your health license.
Once you have obtained the necessary licenses, you can start refining your selling skills. Here are some tips to help you learn sales skills specific to Medicare Supplement Insurance:
- Understand your demographic: Learn about the demographic you are selling to, which in this case is seniors. Seniors have seen advertising and sales tactics evolve over the years and can quickly see through them. Therefore, it is important to have an honest desire to help them and address their needs.
- Understand Medicare basics: As an independent agent, it is crucial to understand Medicare basics to have valuable discussions with your clients. The more your clients trust you, the more referrals you will receive. For example, you should know that Original Medicare does not cover everything, and Medicare Supplement Insurance plans help provide beneficiaries with protection against costly gaps.
- Understand the value proposition: Thousands of Americans turn 65 every day, and the need for supplemental insurance is growing. Understanding the value proposition behind Medicare Supplement Insurance is essential in closing sales.
- Leverage technology: Instant access to technology can help alleviate the burden of administrative tasks, such as processing enrollment paperwork and commissions, generating quotes, and submitting applications.
- Stay up-to-date: Stay on top of Medicare industry changes to build a competitive edge.
- Build relationships: Use a relationship-selling method when marketing to seniors. This can help you maximize your efforts and get multiple sales from a single household.
- Consider your selling environment: Decide whether you want to work as a captive agent or an independent agent. A captive agent works for someone else and receives extensive support, such as sales tracking, Medicare leads, and sales training. An independent agent has more product options but may need to worry about aspects like buying leads or case management.
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Find a reputable FMO
A Field Marketing Organization (FMO) is the link between Medicare insurance carriers and independent Medicare sales agents. A good FMO empowers you to sell more, earn more, and stay independent.
When selecting an FMO partner, conduct thorough research and ask the right questions to ensure that they can help you achieve your goals and succeed in the senior market. A reputable FMO will help you secure contracts with top insurance companies, provide ongoing support, and enable you to focus on growing your business effectively.
- Understand the role of an FMO: Know what an FMO is, their role in your agency, and what you should expect from them. An FMO should streamline and staff support teams for sales distribution in the senior market. They work on behalf of insurance carriers to support independent insurance agents and drive sales production.
- Portfolio of Insurance Products: Look for an FMO that offers a wide range of insurance products, including Medicare supplement insurance, Medicare advantage plans, prescription drug plans, life insurance, and other ancillary products. This will allow you to offer a diverse range of options to your clients.
- Carrier Contracts: Choose an FMO that has contracts with top-tier insurance carriers. This will give you access to competitive products and services, helping you expand your health insurance market influence and increase your sales.
- Training and Support: Opt for an FMO that provides ongoing training and support to their agents. This includes helping you with compliance, processing compensation, and providing the tools and technology needed to succeed.
- Commission Structure: Understand the commission structure offered by the FMO. FMOs are typically paid override commissions from all product lines sold by Medicare agents using their services. The commission earned by the FMO is usually tied to the sales volume and the workload involved in managing customers.
- Reputation and Reviews: Research the reputation of the FMO in the industry. Look for testimonials, reviews, and feedback from agents who have worked with them. Check if they have a track record of helping agents succeed and grow their businesses.
Remember, selecting an FMO is a significant decision that can impact your business's success. Take your time, do your due diligence, and don't hesitate to ask questions to ensure you find a reputable and reliable partner.
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Frequently asked questions
You don't need a college degree, but you do need a health insurance license. Some states require an additional Medicare line if you want to sell Medicare Supplements.
Medicare Supplement, also known as Medigap, is a separate insurance plan Medicare beneficiaries can purchase in addition to their Original Medicare coverage.
Do an online search for "health and life insurance exam" in your state.
A Field Marketing Organization (FMO) is the link between Medicare insurance carriers and independent Medicare sales agents.
If you want to sell Medicare Advantage products, then you must become AHIP-certified for most carriers.
