Why Medicare Supplement Plans?
If you’re an insurance agent asking, “Why should I sell Medicare Supplement (Medigap) plans?” — the answer is clear: they’re a goldmine of opportunity. And here’s why:
No AHIP Certification Required
That’s right! One of the biggest hurdles to selling Medicare Advantage plans is the time and energy it takes to complete the AHIP (America’s Health Insurance Plans) certification. But with Medicare Supplement plans, there’s no AHIP, no time-consuming carrier training, and no need to become “Ready to Sell.” This makes Medigap a much smoother process for both new and seasoned agents.
Stable Monthly Premiums with Lower Out-of-Pocket Costs
Medicare Supplement plans provide clients with predictable, manageable monthly premiums. Let’s talk numbers:
For example, a 65-year-old male might pay $140 monthly for a Medicare Supplement plan. That’s $1,680 a year, plus the $240 annual Part B deductible. This puts their total out-of-pocket at $1,928 annually. Compare that to the out-of-pocket maximums for Medicare Advantage plans (which range from $3,400 to $6,500, depending on the plan), and the savings become crystal clear. That’s anywhere from $1,472 to $4,572 in savings each year.
Key takeaway: Your client will spend the money either way. The difference is whether they want manageable, predictable costs upfront or surprise expenses when least expected.
No Prior Authorizations & No Network Restrictions
Freedom and flexibility are two huge selling points for Medicare Supplement plans. Clients can visit any doctor or specialist across the country who accepts Medicare — without the hassle of referrals or prior authorizations. Whether traveling or at home, they can get the care they need without worrying about network limitations.
Medicare Advantage, by contrast, often limits patients to specific networks, and getting specialized care can involve complicated approvals.
Competitive Commissions and Long-Term Renewals
Medicare Supplement commissions are highly competitive, with agents averaging around 21% commission on first-year premiums. Using the example of a 65-year-old male paying $140 a month, you’d earn $352.80 annually — just for one sale!
Even better, renewals on Medicare Supplement plans are also around 21%, which continues for up to six years. As premiums increase over time, so do your commissions. So, with each policy sold, you’re building a steady, long-term revenue stream.
Guaranteed Issue
Medicare Supplements are guaranteed to be issued during the initial enrollment period for clients turning 65. This means no medical underwriting, no disqualifying health questions, and no fear of coverage denials. It’s a smooth, easy process for both you and your client.
Perfect Transition for ACA Agents
If you’re already selling under-65 ACA plans, adding Medicare Supplements to your portfolio is a no-brainer. You’re already familiar with navigating health insurance needs, and Medigap plans are the natural next step for your clients as they age into Medicare. Plus, the benefits of stable premiums, nationwide coverage, and simplified selling requirements make Medicare Supplements an easy product to pitch.
Conclusion: It’s Time to Get Started!
Selling Medicare Supplement plans isn’t just about boosting your revenue — it’s about offering your clients peace of mind, flexibility, and financial security. No AHIP. No prior authorizations. No networks. And most importantly, no surprises.
If you’re ready to learn more about how Medicare Supplement plans can work for you and your clients, don’t hesitate to reach out. Contact Chris Gaston at [email protected] to get started!
