Medicare Supplement Selling

Medicare Supplement Selling

Medicare Supplement Selling
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As an agent, Medicare Supplement Advantages are sometimes overlooked.  Selling Medicare Supplements is an important part of an overall offering from an agent. In this blog we will discuss Medicare Supplement Advantages and Medicare Supplement Selling.

Medicare Advantage (MA) plans are subject to change every year, requiring licensed agents to guide beneficiaries through the maze of options. While Medicare Advantage plans often attract attention and continue to grow in market share, it’s essential not to overlook Medigap — Medicare Supplement Selling, as a pivotal part of your product portfolio.

With 23% of Medicare’s 65.1 million beneficiaries choosing a Medigap plan to cover their high out-of-pocket costs, understanding these products and offering them to your clients can significantly enhance your service to consumers seeking peace of mind in their healthcare coverage.

Why would someone prefer Medigap?

Medigap policies, crucial for filling the financial voids left by Original Medicare, offer a robust safety net for beneficiaries. These plans cover additional costs accompanying Medicare-covered services, such as copayments, coinsurance, and deductibles. Much like a hospital indemnity plan can help cover the out-of-pocket costs of MA hospital coverage, a Medigap plan helps a beneficiary pay for the extra costs associated with Original Medicare coverage.

However, unlike MA plans, Medigap plans offer the flexibility to see any doctor who accepts Medicare without the need for network restrictions or referrals. This aspect is particularly beneficial for those who require specialists or frequent medical care that may not be locally available or for beneficiaries who travel frequently or live in different states throughout the year.

The appeal of Medigap extends beyond just the broad provider access. Medigap plans are standardized, meaning the benefits for each plan type are the same regardless of the insurance company offering it. This standardization simplifies the decision-making process for beneficiaries and producers alike, as consumers can choose a plan based not on differing sets of benefits but on the reputation and service quality of the insurer. For example, a Plan G from one insurer will have identical medical coverage to a Plan G from another insurer, though premiums may vary.

Medigap’s consistency and predictability in coverage are also beneficial for financial planning. Beneficiaries can better anticipate their medical expenses without worrying about unexpected charges. For example, plans like Medigap Plan F and G cover Medicare Part B excess charges, which are the costs that providers can charge over what Medicare will pay. This coverage is critical for avoiding surprises in medical billing, ensuring that beneficiaries aren’t left financially vulnerable after routine or specialist care.

Knowing each plan’s specific strengths

Each plan has strengths, and choosing the right one depends on the individual’s health needs and financial situation. For instance, Plan G is a popular choice for new Medicare enrollees, as it offers comprehensive coverage except for the Medicare Part B deductible. And Plan N, while requiring copayments for doctor and emergency room visits, often has lower premiums, making it a cost-effective option for many beneficiaries.

Here is a more specific Medigap benefit breakdown from Medicare.gov:

Why should you prioritize Medigap knowledge?

It’s essential to understand the intricacies of Medigap as you field common objections to MA plans, such as fears about network restrictions and potential high out-of-pocket costs. By being knowledgeable about Medigap, you can provide a comprehensive overview of available options, helping people make informed decisions based on their specific health needs and financial situations.

Medigap’s lack of network restrictions offers a stark contrast to MA plans. It can be a critical selling point for beneficiaries who value the freedom to choose their healthcare providers or those who may require specialists not within a plan’s network. The standardized nature of Medigap plans means that once a person chooses a plan, they can be assured that the benefits won’t change annually, unlike MA plans, which may alter benefits, network structures, or provider agreements each year. This stability can significantly comfort those who desire more predictable healthcare coverage and costs.

Licensed agents and brokers with detailed knowledge of Medigap can also guide people through the nuances of plan selection, such as the implications of choosing a high-deductible plan versus a standard one. While high-deductible plans may offer lower premiums, they require beneficiaries to pay a significant amount out-of-pocket before coverage begins. Understanding these details allows you to tailor your recommendations to the financial realities and medical needs of those you serve.

Takeaways

  1. Medicare Supplement insurance (Medigap) fills the significant gaps in Original Medicare, offering peace of mind by covering out-of-pocket costs.
  2. Unlike Medicare Advantage plans, beneficiaries with Medigap plans aren’t restricted by network limitations and can see any doctor who accepts Medicare nationwide.
  3. Understanding the nuances of Medigap and its comparisons to MA can allow you to expand your product portfolio, better serve a broader range of client needs, and effectively address them.

 

Get started with Medicare Sales today-  Spot Sign

Medicare Training- Navigating the End of AEP: Insights and Projections for Medicare Sales with Jeff Palo

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Jeff Palo

Jeff Palo

Vice president - Health Sales

x7716 | jpalo@pfsinsurance.com

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1 (800) 772-6881
support@pfsinsurance.com

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Key Changes for DSNP Plans in 2025

Key Changes for DSNP Plans in 2025

Key Changes for DSNP Plans in 2025
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The Centers for Medicare & Medicaid Services (CMS) has announced some big changes in their final rule that will affect DSNP plans and the special election period (SEP) for 2025.

 If you’re a producer working on new business or managing a large portfolio, you’ll need to understand these upcoming changes and what they mean for you.

How Producers Will Be Affected These changes might present both hurdles and chances for producers dealing with dual-eligible plans. While some modifications are limited, others are clarified, altering the landscape for those deeply involved with dual-eligible clients.

Access to Resources

We know you’ve got questions about how to watch our webinars, and we’re here to make it simple. All our webinars, including the latest ones, are available on our YouTube channel, Pinnacle Financial Services. By subscribing, you’ll never miss out—you’ll get notifications about new content and stay updated weekly.

Key Changes Overview

The CMS final rule introduces considerable adjustments affecting full dual eligible beneficiaries, partial dual eligible beneficiaries, and LIS-only members. These changes will be effective from January 1, 2025, and apply during the annual period when you are writing new businesses.

Quarterly Update Elimination: The quarterly election period for full duals, partial duals, and LIS-only members will be removed, transitioning to a more structured framework moving forward.

New Monthly SEPs: A significant shift is the introduction of monthly SEPs. These will enable beneficiaries to make specific changes more frequently:

  • Disenrollment Options: Beneficiaries can disenroll from an MAPD to revert to original Medicare and enroll in a standalone drug plan.
  • Drug Plan Adjustments: Monthly adjustments are allowed for standalone drug plan changes within the year.
  • DSNP Plan Changes: Full dual eligibles can change to an integrated DSNP plan, emphasizing the need to identify integrated and aligned DSNPs.

Emphasizing DSNP Plan Integration Levels

These changes necessitate understanding DSNP integration levels. Full dual eligibles can migrate to fully integrated Dual Eligible Special Needs Plans (FI-SNP), Highly Integrated Dual Eligible Special Needs Plans (HIDE-SNP), or other applicable integrated plans (AIP).

Alignment and Future Considerations

Aligned enrollments will become increasingly critical, potentially restricting DSNP enrollments to aligned options by 2027. Understanding the relationship between Medicaid managed care organizations (MCOs) and DSNPs is vital, as these affiliations will determine eligible enrollment.

State-Specific Dynamics

Producers should be aware that the availability of eligible dual plans may vary significantly across states. Many states primarily offer coordination-only plans, limiting election use for full duals if integrated options aren’t available.

Conclusion

As we move into 2025, it’s vital to stay on top of the new regulations and understand all the nuances. Producers need to keep updated on the status of DSNP plans and make the most of the existing SEPs and resources to maximize dual enrollment and retention strategies.

If you have any questions or need further clarification, give us a call at 1-800-772-6881. And don’t forget to check out our YouTube channel for the latest updates. Stay informed and prepared as we head into 2025 to maintain your edge in the insurance industry.

For more information, contact a Pinnacle Financial Services representative today 1 (800) 772-6881 x7731 | sales@pfsinsurance.com
Jeff Palo

Jeff Palo

Vice President of Health Sales

x7716 | jpalo@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881 support@pfsinsurance.com

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Social Security Increase and Medicaid

Social Security Increase and Medicaid

Social Security Increase and Medicaid
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Social Security Increase and Medicaid by the Numbers.

In October 2022, the Social Security Administration announced an 8.7% Cost of Living (COLA) increase in Social Security payments.  These annual increases are determined by the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

 They are designed to help Social Security beneficiaries keep pace with inflation.  The idea is for benefits to not lose value over time.  This 8.7% increase is the largest COLA increase since 2009.  It’s set to go into effect on March 1st, 2023.  Social Security is a Federal program, whereas Medicaid is administered through individual state programs.  Medicaid rules are complex and vary greatly, so it’s important to be specific with every individual.  A good rule of thumb is, if you make less than 100% to 200% of the federal poverty level (FPL) and are pregnant, elderly, disabled, a parent/caretaker, or have a child, there’s likely a program for you.

Social Security Increase and Medicaid Eligibility.

There have been mixed reactions to the recent COLA increase.  Some beneficiaries have rejoiced at the increase in their monthly checks, while others are worried about how it will impact their Medicaid eligibility. Medicaid is a need-based program that provides health coverage to people with limited income and resources. In many states, beneficiaries with income above a certain threshold are not eligible for Medicaid.  Social Security income is considered “countable” income in regard to Medicaid eligibility. As an example, someone’s countable income was $1,000 per month before the increase and is now $1,087 per month.  This could make them ineligible for Medicaid.  

Remember, not all states will be affected by this increase in the same way.  There can be more generous or strict income thresholds. some states have “spend-down” provisions, allowing for medical expenses to drop an individual’s income below the threshold.  Asset, marital status, and living situation are also factors in determining Medicaid eligibility. It’s always best to have clients speak with a Social Security representative or Medicaid specialist to understand how changes impact their eligibility.

Social Security Increase and Medicaid Conclusion.

It’s always important to stay informed about any changes coming from the government, such as new CMS marketing rules.  Many Medicare Advantage carriers now offer tools to help determine Medicaid eligibility in real-time when sitting with a potential client.  In certain states, there are State Pharmaceutical Assistance Programs (SPAP) designed to help with costs, which also create a Special Election Period for Medicare Advantage.  Some carriers offer plans that cater to those beneficiaries with partial dual eligibility.  It’s important to have the proper quoting tool that shows all plans that are available to you as an agent in your area, such as Connect4Medicare.  Be sure to take advantage of the tools available to help your clients make the best decision for their health and finances.

Be sure to subscribe to our posts to receive information in real-time.

For more information on Medicare OEP and one-on-one support, click here to contact your Sales Director.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Jeff Palo

Jeff Palo

Vice President - Health Sales

x7716 | jpalo@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

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Understanding Medicare OEP Rules

Understanding Medicare OEP Rules

Understanding Medicare OEP Rules
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The Medicare Open Enrollment Period (OEP) occurs each year between January 1st and March 31st.  It is important to understand the Medicare OEP rules.  A client must be on a Medicare Advantage plan to take advantage of the OEP opportunity.  If your client is currently on a Medicare Advantage plan, they can either make a one-time switch to a different Medicare Advantage Plan or go back to their Original Medicare and enroll in a stand-alone Prescription Drug Plan.  The new plan would be effective the first of the month following the submission of the enrollment.

It is important to remember that, while the client may drop their MA plan and go back to Original Medicare and a PDP, they will NOT automatically be Guarantee Issue Acceptance for a Medicare Supplement plan.  They would need to follow that state/carrier rules regarding plan acceptance.  Using the OEP enrollment selection does not disqualify a client from using their quarterly Special Election period for a Dual Special Needs Plan if they have both Medicare and Medicaid.

Medicare OEP “Do’s and Dont’s”?

CMS has specific marketing guidelines that must be followed during OEP.  Agents may not knowingly target or send unsolicited marketing materials to any MA or Part D for the purpose of using their OEP option to change plans.  “Knowingly” takes into account the intended recipient as well as the content of the message. 

Do Not

  • Send unsolicited materials advertising the ability/opportunity to make an additional enrollment change or referencing the OEP;
  • Specifically, target beneficiaries who are in the OEP because they made a choice during the Annual Enrollment Period (AEP) by the purchase of mailing lists or other means of identification;
  • Engage in or promote agent/broker activities that intend to target the OEP as an opportunity to make further sales; or
  • Call or otherwise contact former enrollees who have selected a new plan during the AEP.

Do 

  • Marketing to age-ins (who have not yet made an enrollment decision);
  • Marketing by 5-star plans regarding their continuous enrollment SEP;
  • Marketing to dual-eligible and LIS beneficiaries who, in general, may make changes once per calendar quarter during the first nine months of the year;
  • Send marketing materials when a beneficiary makes a proactive request;
  • At the beneficiary’s request, have one-on-one meetings with a sales agent; and
  • At the beneficiary’s request, provide information on the OEP through the call center

Medicare OEP Training

We hold webinars multiple times throughout the week covering a variety of topics, including Medicare OEP and other marketing opportunities.  Be sure to always check the Enrollment Period Guide if you have questions on eligibility.  Reach out to our support team for training calendars from each carrier in your area.

For more information on Medicare OEP and one-on-one support, click here to contact your Sales Director.

Click Here to Contract.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Jeff Palo

Jeff Palo

Vice president | health sales

x7716 | jpalo@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

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The new CMS Recording Rule (Final Rule)

The new CMS Recording Rule (Final Rule)

The new CMS Recording Rule (Final Rule)
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On April 29, 2022, the Centers for Medicare & Medicaid Services (CMS) released what they call a “final rule that advances CMS’ strategic vision of expanding access to affordable health care and improving health equity in Medicare Advantage (MA) and Part D through lower out-of-pocket prescription drug costs and improved consumer protections.”

  • Marketing and Communication Oversight
  • Lowering Beneficiary Pharmacy Costs
  • Verifying Past Plan Performance
  • Strengthening Network Adequacy
  • Creating Transparency in Medical Loss Ratio
  • Part C and D Quality Rating System
  • Enrollee Input in DSNP Operations
  • Social Determinants of Health and Special Needs Plan Health Risk Assessments
  • Simplified Appeals and Grievance Processes
  • New Pathways to Have Star Ratings Specific to the Performance of the Local D-SNP
  • New Pathways to Simplify D-SNP Enrollee Materials
  • Maximum Out-of-Pocket Policy for Dually Eligible Beneficiaries
  • Technical and Definitional Updates for FIDE SNPs and HIDE SNPs

The latest episode of Connect4Insurance has a more in-depth discussion on the full regulations.

How does the new CMS Recording Rule affect agents?

The National Association of Health Underwriters (NAHU), the leading advocate for health insurance agents, released an update as they continue to fight for change within the rule.  As it currently stands, beginning on October 1st, 2022, all field agents will be required to record all phone calls with beneficiaries.  There is also now a disclaimer that all agents must provide: verbally within the first minute of a sales phone call, electronically when communicating by email or other electronic means, or displayed on any third-party marketing materials or websites.  The disclaimer reads:

“I/We do not offer every plan available in your area. Please contact medicare.gov or 1-800-MEDICARE to get information on all your options”

What can an agent do to prepare or fight the new CMS Recording Rule?

There is a petition founded by Medicare agents trying to reach lawmakers within CMS to explain why the recording rule, while admirable, will negatively affect the wrong people.  According to the Federal Registry for 2022, CMS reported that there were only 39,617 “complaints to Medicare” out of 29,000,000 enrollments.  This equates to 0.0013661% of enrollments.  Most of the complaints were geared toward misleading television ads created by third-party marketing organizations that provide leads to call centers.  Sign the petition and register for your local NAHU chapter to make sure your voice is heard.

If the rule stands as-is, you need to be prepared.  We will have multiple options for recording calls, storing data, and identifying beneficiaries.  This is all provided at no cost.  Schedule a call with our National Sales Trainer, Rob Valincius, for more information on the technology available to you.

Be sure to subscribe to our posts to receive information in real-time.

For more information on Medicare OEP and one-on-one support.

For more information, contact a Pinnacle Financial Services representative today

1 (800) 772-6881 x7731 | sales@pfsinsurance.com

Jeff Palo

Jeff Palo

Vice President | Health Sales

x7716 | jpalo@pfsinsurance.com

Contact a Pinnacle Representative if you have any questions.

1 (800) 772-6881
support@pfsinsurance.com

Contact Us

Contact a Pinnacle Financial Service representative today for assistance.

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