Medicare Supplement FMO

Senior Market Advisors is a Medicare Supplement FMO

Senior Market Advisors takes a unique and unbiased approach to Medicare Supplement sales. Our dedicated sales and marketing teams encourage agent engagement at every level.

Our experience as Medicare agents means that we can provide the best tools and practices to grow your agency. We know how because

The Benefits of Working With An Insurance FMO / IMO

Partnering with a field marketing organization can make all the difference when it comes to selling Medicare Supplement and Medicare Advantage plans.

Is selling Medicare hard? Are you having trouble finding quality leads in your markets? Have you run into issues trying to contract and certify for different insurance products? A Medicare FMO can give you the help you need, so you can focus on selling again. All Medicare FMOs will differ, but common agent benefits include:

  • Access to CRM and quoting solutions
  • White labeled marketing materials
  • Updates on carrier products and benefits
  • Experienced support staff

Why Medicare Supplement Sales?

If you are looking to grow your business, you should consider selling Medicare Supplement plans, especially if you are already selling other Medicare products. If you have only worked in other types of insurance, like health or life insurance, Medicare Supplement sales can be a great way to get involved in the Medicare market.

Selling Medicare Supplement, also called Medigap plans, could provide a great residual income stream for your business. Consider these factors if you are curious about selling Medicare Supplement plans:

  • Easiest Medicare Product to Start With
    • There’s no complicated certification required to sell Medicare Supplement and you can enroll clients year-round since there are no set annual enrollment periods.
  • High First-Year Profit Potential
    • Medigap plans offer agents a high first-year commissions rate, in addition to annual residuals. These plans can often last for 8 years or more, so they can provide long-term income.
  • Massive Market
    • The primary market for Medicare Supplement plans, seniors 65 and older, is the fastest-growing population in the nation. Medigap plans are sold to supplement Original Medicare benefits.

What You Should Know About Selling Medicare Supplement Insurance

Should you decide to start selling Medicare Supplement insurance plans, be sure to do your due diligence. You will want to have a good understanding of how these federally-standardized health insurance plans are managed and how they can best be marketed.

Who buys Medicare supplement plans?

Medicare Supplement insurance plans offer an accessible entrance into the rapidly growing Medicare market. Medigap plans are available to existing Medicare beneficiaries, including seniors and, depending on differing state laws, those who are eligible because of disability or disease.

Medicare Supplement Guidelines

When you are selling Medigap plans, be sure to remain compliant with all federal and state guidelines. Understanding the regulations around the marketing and selling Medicare Supplement plans will not only keep you compliant, but will allow you to take advantage of guaranteed issue periods and other programs. Here are some other guidelines to keep in mind:

  • A client must have Medicare Part A and Part B.
  • It is illegal to sell to a client a Medigap Policy if they have a Medicare Medical Savings Account (MSA) Plan.
  • If a client has a Medicare Advantage Plan, they can apply for a Medigap Policy, but must leave the Medicare Advantage Policy prior to the Medigap Policy becoming effective.
  • The client’s Medigap policy is guaranteed renewable even if they have health problems. The insurance company can not cancel the Medigap policy as long as premiums are paid.
  • The client will pay two separate premiums, one for the Medigap policy as well as the monthly Part B premium paid to Medicare.
  • The client’s Medigap policy will only cover one person. Spouses must purchase a Medigap policy separately.
  • For other rules and regulations regarding Medigap Policies refer to

How Rates Are Set

Unlike Original Medicare, rates for Medicare Supplement plans are not decided by the government, but by private insurance carriers. Their rates will vary but most will use one of three common methods:

  • Community-rated – This calculation method does not take age into account when setting rates. Premiums set with this method will be based on broad factors and applied to all customers.
  • Issue-age-rated – This method does factor in age, but only at the time of issue. These rates will not go up as the client ages, but may be increased from other factors.
  • Attained-age-rated – Rates that are calculated with this method continue to rise every year, along with the client’s age. Certain other discounts and factors may apply to all of these rates.

Medicare Supplement Plans A-N

Medigap Plan A represents the most basic of all Medicare Supplement options, but does cover some of the most crucial benefits not provided by Original Medicare.

Medigap Plan B includes everything under Plan A, but also covers the Medicare Part A hospital deductible.

Medigap Plan C is one of the most popular plans, as it covers your outpatient costs, as well as both of your deductibles
Plan D (not to be confused with Part D, which designates Medicare prescription drug plans) covers more than Plans A & B, but does not include the Part B deductible covered by Part C.

Plans K & L only offer partial coverage for will pay for 100% of all covered services for the rest of that calendar year once the Part B deductible is met ($198 in 2020.)

For beneficiaries who are interested in lower premiums, Plan N might be their preferred option. But in exchange for lower cost, this plan requires copays for doctor’s office or emergency room visits.

Medicare Plan G vs. Plan F

The two most popular Medigap plans are Plan F & Plan G. Plan G covers almost everything that all of the other plans cover, including Part B excess charges. It does not, however, take care of your Part B deductible.

Plan F covers your Part B deductible, in addition to every other benefit available with the other plans. This is likely why it is currently the most appealing plan to consumers.

Both Plans F & G offer high-deductible versions of their plan in certain states. With these plans, the beneficiary must pay up to the deductible ($2,340 in 2020) before any services are covered.

Open Enrollment vs. Guaranteed Issue

Though private insurers usually have control over their eligibility requirements, the federal law guarantees all Medicare beneficiaries the right to a Medicare Supplement policy during the guaranteed issue period, regardless of your medical history.

The Open Enrollment Period for Medicare Supplement plans begins when a person turns 65 and enrolls in Part B. The enrollment period last for six months and everyone has guaranteed issue rights during that time.

A beneficiary might also have guaranteed issue rights under certain circumstances, like if you are forced to move away from the service area of your current Medicare Advantage plan. These guaranteed issue rights may not apply to all Medigap plans.

How to Begin Selling Medicare Supplements: The Basics

Ready to get started selling Medicare Supplements? Here are some crucial steps to help you start off on the right foot in Medigap sales:

Partnering with an FMO

Getting comfortable in any new sales environment can be challenging. A Medicare IMO (insurance marketing organization) or FMO can provide you with the experienced support and knowledge that can be vital to meeting your sales goals.

Getting a Proper Insurance License

Before you start selling, you will need to be licensed in any state that you wish to sell in. You will also have to be properly contracted and certified with the respective carrier for marketing any of their products.

Purchasing Errors and Omissions insurance

Errors & Omissions (E&O) insurance is a form of liability insurance, commonly used by businesses to protest against potential claims of negligence or inadequate work. This kind of policy can be especially useful to small businesses marketing and selling Medicare and other health insurance products.

Completing the AHIP Medicare certification

Before you complete your required carrier training, you will need to complete your AHIP (America’s Health Insurance Plans) certification, and transmit your certificate to your desired carriers.

Tips for Selling More Medicare Supplement Plans

The best way to sell Medicare Supplements is to give your business the time and attention it deserves. If you really want to start making money selling Medicare, try these tips for selling more Medicare Supplement plans:

  • Maintain lead relationships
  • Service your book of business throughout their plan lifetimes
  • Partner with FMO
  • Utilize sales tracking software and other data
  • Develop a marketing plan
  • Find and certify for the best states to sell Medicare Supplements.

Selling Medicare Supplements Over the Phone

There is an increasingly large opportunity for agents to sell Medicare Supplements from home, and many have started to take advantage. There are a few things you will need when telemarketing Medicare supplements:

  • Leads from diverse sources
  • An experienced telemarketer
  • CRM and Dialer (integrated together)
  • Carrier and CMS-compliant Medicare supplement telemarketing script

Medicare Commissions 2020: How Much do Medicare Supplement Agents Make?

Those interested in Medigap sales may wonder, “Is selling Medicare lucrative?” The answer is, “Yes, more than ever!” In fact, The Center for Medicare and Medicaid Services (CMS) recently raised the Part D and Medicare Advantage commissions rates again this year, and Medicare Supplement commissions rates are as profitable as ever.

With the average Medicare Supplement commission of 20%, you can earn around $420 for the first year, which you can get up front in an advance payment. For the next six years, you will receive an additional compensation of $420 for every year the policy remains in force. A Medicare Supplement sales salary can provide a valuable, and relatively low-maintenance, stream of revenue for your agency.

Medicare Supplement Carriers

It is vitally important to your Medicare Supplement business that you familiarize yourself with the numerous plans offered by insurance companies, along with their benefits and premium rates.

Senior Market Advisors provides agents like you access to products from these insurance carriers:

Why SMA Should Be Your Medicare and Senior FMO

Senior Market Advisors was founded and developed by insurance agents who know what it’s like to deal with the headaches that keep you from making sales. This experience informs the way we do business as a senior market FMO, and helps us provide you with the best Medicare Supplement sales training and products.

What We Offer Our Independent Agents

  • Top-tier commissions
  • Diversified product portfolio
  • eContract with multiple carriers at once
  • Product insight
  • Medicare Training

Agent Testimonials

“For the past seven years, I’ve been showing up and closing enough to make over $200,000 a year and still having the flexibility to coach a high school soccer team. Life is good thanks to SMA.” – Ray Dover

More Information and Resources for Insurance Agents

Still curious about selling Supplemental insurance but need more information? Follow the links below for more great resources on Medicare Supplement sales.

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Ready to get started selling Medicare Supplement plans? eContract with us today and see what we can do for you and your business!

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