To be a true advocate to your clients, you need to understand how Medicare coverage works to see how a Medicare Supplement plan will benefit them. As you probably already know, learning the ins and outs of Medicare is one of the critical parts of becoming a successful insurance agent. Today, we are going to focus on what you need to become an expert at Medicare Supplements.
Original Medicare Part A (Hospital Insurance) covers 80% of costs after deductibles and coinsurance. While that 20% of out-of-pocket expenses seems small overall – it can add up quickly in dollars. This is what a Medicare Supplement plan would cover. For most, Medicare Part A is earned, but it can be expensive for those who need to purchase coverage. Medicare Supplement plans cover the gaps left over after Original Medicare so that your client has fewer unexpected out-of-pocket costs.
Medicare Part B
Medicare Part B covers most essential medical expenses for clients. Medicare Part B has a premium that is approximately $134-430 monthly, and the deductible for 2021 is $203. This means they will pay that much in expenses before receiving coverage. Then, they will pay 20% of any costs. With a Medicare Supplement plan, this would be covered.
What does a Medicare Supplement policy cover?
Medicare Supplement policies cover those 20% gaps left behind by Original Medicare Parts A & B, as well as the deductibles. They also cover health & wellness benefits that are not covered at all by Original Medicare. Medicare Supplements also cover dental, vision, and hearing wellness visits.
Where are Medicare Supplements accepted?
In most cases, a Medicare Supplement is accepted by any doctor who accepts Medicare. Since you can use it with any doctor out of network, Medicare Supplements are an excellent option for clients who travel frequently.
What are the differences between Medicare Supplement plans?
The fundamental differences between all the Medicare Supplement plans are underwriting and price. Each company asks a set of questions, and if your client does not pass those questions, you can try a different insurance carrier. Each carrier’s underwriting questions are unique. However, all plans are the same across the board. For example, Plan E with one company is the same coverage as Plan E with another company, regardless of the cost.
What isn’t covered by a Medicare Supplement?
Medicare Supplement plans do not cover private nurses, vision, dental, and hearing. Long-term care is also not covered by a Medicare Supplement plan.
What about Medicare Supplements & Open Enrollment?
Open enrollment is the best time to enroll clients in Medicare Supplements (even though they can register all year long) because they do not have to worry about pre-existing conditions at this time. If they miss OEP, they will have to pass the health questions to be approved to enroll.
Be aware of products in your market.
Although the coverage is the same, try and note the underwriting questions and household discounts that different Medicare Supplement carriers offer. Each of your clients has different needs, and you want to meet each of their needs in a personalized way. Get contracted with various carriers to offer your clients a plan that meets their individual needs – both financially and coverage-wise.
For more information on Medicare Supplements and learn what products you can offer to your clients in your market, contact Agent Pipeline!