Understanding Power of Attorney – Ep. 11

In Episode 11, we talk about Power of Attorney, and continue our deep dive into a few disruptive technologies in the healthcare space. This week we discuss rideshare apps and how they are changing the way people get to and from their healthcare appointments.

It’s important to understand Power of Attorney in the Medicare sales space. As an agent, you will encounter situations involving Power of Attorney more often than you may think. We go over the different types of Power of Attorney, when you might encounter them and what to do if the beneficiary you are working with has a Power of Attorney.

Sarah and Jessica conclude the episode by talking about a recent interview with Mark Cuban on YouTube. If you don’t know Mark Cuban, he is a successful entrepreneur who went from rags to riches by working hard and selling smart. He’s got some amazing advice for all entrepreneurs and Sarah breaks down what she learned from the video. Sarah and Jessica discuss to give you some inspiration for your day!

Disruptive Waves:

Sarah: Welcome to Episode 11 of Selling SMART with Sarah Smith….

Jessica: And Jessica Vara!

Sarah: In today’s episode… we’re going to talk about another technology that’s disrupting the healthcare marketplace… Rideshare apps! Then we will talk about Power of Attorney, the types, and what to do if you encounter a beneficiary with a POA out in the field!

All Aboard the Knowledge Train:

Sarah: Have you ever been on an appointment and got through your entire presentation, only to find out that the beneficiary doesn’t make their own medical decisions? This is something that is so important to find out on the front-end, before even making the appointment to make sure you aren’t wasting yours and the beneficiary’s time.

Jessica: It’s actually more common than you might think. You will probably encounter beneficiaries with POA’s least once if not somewhat often. So if you don’t know how they work, you may be left looking and sounding unconfident and uninformed. No one wants that, but don’t worry that’s what Selling SMART is for!!

Sarah: Okay so if a beneficiary doesn’t make their own medical decisions, that means they have a POA. If you don’t know ANYTHING about POA’s lets start with the basics. So What exactly is a POA? POA stands for Power of Attorney. A power of attorney is just a person who has been granted the ability to perform any legal actions on behalf of another person. So this could include anything from financial decisions, care for children or health care decisions! 

Jessica: Some really basic terms used to describe the two individuals involved in this legal arrangement include a principal (AKA the person requesting the POA) and the agent, AKA the person who will assume responsibility and decision making power on behalf of the principal.

Sarah: Typically a person would get a power of attorney if they are elderly and are facing life-threatening health conditions but someone who travels a lot may even have power of attorney. It’s also possible that if a beneficiary has mental of physical incapacity, an agent may be asked to make financial and health decisions for that person because there needs to be someone who is in their right mind making such large decisions. 

Jessica: The point of a power of attorney is to ensure that the principal (the beneficiary) decisions and their best interest are carried out as best as possible. So the principal can designate who their power of attorney will be, many times they choose a spouse or a child. And they can also choose the scope of what they want them to be able to do. In order to set up a power of attorney, the principal must have sufficient mental capacity when drawing up the document, meaning they fully understand the nature and consent to the document and it’s terms.

Sarah: So let’s just go over the types of POA’s. There are five types of POA’s that you may encounter out in the field.

Non-durable POA. This type is set for a specific amount of time and is generally used for one particular transaction. Once the transaction is over, the POA expires. So this one typically is used if the principal has some big document they need to sign and for whatever reason, they are unable to be present at the time of the signing. So they’d designate a POA to take care of that transaction, and then once the document is signed, the POA expires and can’t be used for any other decisions. 

Jessica: Durable POA. A Durable POA is effective immediately as soon as the document has been signed and only expire when the principal passes away. These are typically used to manage all the principal’s affairs including their health care decision. This is likely the type you’ll encounter most out in the field. People typically get POA’s when they become elderly and maybe they have dementia, maybe they have serious health concerns and worry they will become incapacitated in the near future. 

Sarah: Special/Limited. This one is used for one-time financial decisions, like a sale of a particular property. This type is most commonly used when the principal cant complete the transaction due to other commitments or illness. After that, the POA expires. This is really similar to a Non-Durable POA and is much less common for you to encounter out in the field.

Jessica: Medical: A Medical POA can make all healthcare decisions for the principal if they become incapacitated but not before. This generally takes effect upon approval of a presiding physician. Some other terms for a Medical POA from Medicare.gov include: Health Care Proxy, Appointment of Health Care Agent, or Durable Power of Attorney for Health Care. So if they tell you that have any of the above, that is a Medical POA! 

Sarah: Springing: This type of POA will become effective in the future only if a specific event occurs. So this could include things like a triggering event, leaving the country. This POA can be durable or non-durable. Really this type is just a way for a principal to create a POA that is specific to their needs.

Jessica: It’s important to note that the scope of a POA can be as broad or as narrow as the principal wants. So once you know that the beneficiary has a Power of Attorney, what’s next? 

Sarah: Well, it really depends on the type and the scope of their POA. POA’s can vary from state to state. You don’t need to know whether its valid or do any checks or anything like that. But obviously, the POA needs to be present during the meeting because they are the one who needs to fill out the application. If they aren’t present, you’ll have to reschedule for another time when they are available. They’ll sign their name and write Power of Attorney next to it. Medicare will rely on the letter submitted.

Jessica: When the application is submitted, you’ll also need to make sure the letter stating who has power of attorney must be submitted with the application. It needs to be a notarized copy. 

Sarah: And that’s really the extent of what you need to know as an agent when dealing with POA’s. If you have any other questions feel free to reach out to our team and we’d be happy to help. Give us a call at 844-334-6066.

Ending on a Positive Note:

Sarah: So I was watching a video on Youtube last night of a guy interviewing Mark Cuban. And man he’s a really inspiring guy! If you don’t know his story, he went from rags to riches based on hustling. He talked about how his mom was worried that he would never do anything with his life and they were really poor so she had him work laying carpet because she thought he needed to learn a trade. Well he SUCKED at laying carpet so he figured that if he was ever going to amount to anything, he needed to use his head. 

So he worked at a software store, and actually ended up getting fired. But him getting fired just made him work harder to start his own software company which was the beginning of how he got to where he is today, a billionaire. 

And he’s so humble! One thing that I thought was really ocol that he was talking about, is how he hired this woman to be the CEO of the Mavericks. (for those who don’t know Mark Cuban owns the Dallas Mavericks NBA basketball team). And he said he hired her because she had a bunch of the qualities that he didn’t. Even being so accomplished and successful, he still sees his own flaws and recognizes that there is always people out there who are better at things than him or have skills that he doesn’t. He talks about how extroverted she is and how much energy she has and how he thought he was high energy and extroverted but that she makes him seem shy and tired. And really his whole point is that even when you’re successful, you should always be hungry for more. You can always be better. And being someone who surrounds yourself with people who are better and people who challenge you will make you better. Only talking to people who agree with you all the time or who love all your ideas, isn’t going to make you a better entrepreneur, it’s just going to keep you stuck. You need to get out there and talk to people who disagree with you, talk to people who will pick apart your business ideas and strategies because that’s what will make you better and help you grow as a person and as a business person as well! So anyway, shout out to Mark Cuban, he is a really inspiring person!

Jessica: Alright everyone, that concludes today’s podcast episode. 

Sarah: If you want to learn more about how Senior Market Advisors can help get you started in the Medicare Advantage space, give us a call at 844-334-6066. If you want to be featured on the podcast, visit www.seniormarketadvisors.com/podcast and click on the button that says “Share Your Story.” 

Jessica: We appreciate you joining us this week on Selling SMART 

Sarah: with Senior Market Advisors!