According to KFF’s latest Medicare enrollment data, North Dakota is one of the lowest Medicare Advantage penetration states in the country. Unlike states such as Florida and California where over 60% of Medicare beneficiaries are enrolled in Medicare Advantage plans, North Dakota remains a stronghold for traditional Medicare and Medicare Supplement plans.
There are several factors contributing to this:
Rural Healthcare Challenges & Limited Provider Networks
Medicare Advantage plans often face network limitations in rural states like North Dakota, where healthcare facilities are sparse and hospital networks may not fully support MA plans. In contrast, Medicare Supplement plans allow beneficiaries to see any provider nationwide who accepts Medicare, making them a more flexible and attractive option in areas with limited healthcare access.
Fewer Medicare Advantage Plan Options
While the average Medicare beneficiary in the U.S. can choose from 43 different Medicare Advantage plans, North Dakota has significantly fewer choices. Many counties have little to no Medicare Advantage competition, making Medicare Supplement plans the preferred option for comprehensive healthcare coverage.
Financial Protection & Predictability
While Medicare Advantage plans include out-of-pocket maximums, Medicare Supplement plans offer greater cost predictability. This is especially valuable to North Dakota’s aging population, many of whom prefer stability over variable copays and provider restrictions.
The Challenge: Helping Consumers Understand Their Medicare Choices
Many licensed insurance agents in North Dakota struggle to educate consumers on the differences between Medicare Advantage and Medigap.
With constant insurance marketing around $0 premium Medicare Advantage plans, some beneficiaries assume these plans offer the best value—only to later discover limitations related to provider networks and cost-sharing structures.
This is why insurance agencies and insurance agents must invest in marketing materials, webinars, and social media initiatives to educate consumers effectively and differentiate themselves from the competition.
The Impact of North Dakota’s Health Systems on Medicare Enrollment
North Dakota’s healthcare landscape plays a crucial role in Medicare plan selection. Unlike urban states with densely connected hospital networks that readily contract with Medicare Advantage plans, North Dakota’s healthcare providers and hospitals pose challenges to Medicare Advantage expansion due to limited network agreements.
Major Health Systems in North Dakota
- Sanford Health (Fargo & Bismarck): The largest health system in the region, serving a wide range of specialties. However, Medicare Advantage plan acceptance varies, making it uncertain for enrollees.
- Altru Health System (Grand Forks): A major healthcare provider in eastern North Dakota; not all Medicare Advantage plans cover Altru providers, reinforcing the value of Medicare Supplement plans.
- CHI St. Alexius Health (Bismarck & Dickinson): A key hospital and clinic network where Medicare Supplement plans offer greater provider flexibility compared to Medicare Advantage plans.
- Trinity Health (Minot & Williston): A critical healthcare provider in western North Dakota, serving a population with limited Medicare Advantage options.
How North Dakota’s Health Systems Affect Medicare Plan Choices
- Medicare Advantage Plans Have Network Limitations: Because North Dakota’s hospitals and doctors don’t contract with every Medicare Advantage carrier, beneficiaries enrolled in MA plans may face care access challenges.
- Medicare Supplement Plans Provide More Flexibility: With a Medigap plan, beneficiaries are not limited to a network—they can visit any provider that accepts Medicare nationwide, making these plans a preferred choice in rural areas.
- Providers May Prefer Traditional Medicare: Some North Dakota healthcare systems favor traditional Medicare and Medigap over Medicare Advantage due to reimbursement challenges and administrative complexities.
For insurance agencies, understanding which hospitals and clinics accept which Medicare plans is crucial to helping beneficiaries make informed decisions. This is where a strong FMO, general agency, or brokerage can provide critical guidance for insurance agents selling Medicare Supplement plans.
How an FMO Can Help Insurance Agents Succeed in North Dakota
For insurance agencies looking to expand their Medicare Supplement sales in North Dakota, partnering with a Field Marketing Organization (FMO) that understands the unique market dynamics is crucial.
A strong FMO partnership provides:
- Market Data & Strategic Insights: Identifying high-demand Medicare Supplement markets and helping agents differentiate their offerings.
- Lead Generation & Marketing Support: Providing consistent lead programs to connect insurance agents with high-intent Medicare consumers.
- Access to Top Insurance Carriers & Competitive Contracts: Ensuring agencies offer the best Medicare Supplement plans, based on quality metrics rather than just price.
- Compliance & Regulatory Guidance: Helping insurance agencies navigate CMS rules, North Dakota-specific regulations, and AEP strategies.
- Ongoing Training & Agent Support: Assisting insurance agents in positioning Medicare Supplement plans effectively to compete with Medicare Advantage offerings.
- Co-op Marketing & Lead Programs: Many FMOs provide co-op marketing programs, social media support, and lead programs to help independent insurance agents scale their business.
Conclusion: Finding the Right FMO for Medicare Sales Growth
Senior Market Advisors is an insurance FMO with a proven track record of helping insurance agencies grow. Whether you’re looking to expand your insurance business, increase your book of business, or improve your Medicare sales strategy, our team provides the expertise, training, and partnerships you need.
North Dakota remains a prime market for insurance agencies selling Medicare Supplements. With low Medicare Advantage penetration, rural healthcare challenges, and a consumer base that prioritizes provider flexibility, Medigap plans will continue to be a leading choice for North Dakota seniors.
However, successfully navigating this market requires expertise in health insurance, strong carrier relationships, and effective insurance marketing strategies. That’s why partnering with the right FMO, general agency, or brokerage is essential.
If you’re an insurance agency in North Dakota looking to expand into the Medicare business or searching for a new upline, now is the time to align with an FMO that understands how to help you succeed in a Medigap-driven market.
Get started today and grow your Medicare business in North Dakota.
