Medicare Supplements

If you are looking to grow your insurance agency, you should consider selling Medicare Supplement plans, especially if you are already selling other Medicare products like Medicare Advantage or prescription drug plans. If you’ve only worked in other types of insurance, such as health insurance or life insurance, getting into Medicare Supplement sales is one of the easiest ways to break into the broader Medicare insurance market.

Why Sell Medicare Supplements?

  • Easiest Medicare Product to Start With – There’s no complicated AHIP certification required to start selling Medicare Supplement plans, and you can help clients with enrollment year-round since Medigap plans aren’t limited to a specific enrollment period like Medicare Advantage plans are.
  • High First-Year Profit Potential – Medigap plans offer insurance agents a high first-year commission rate, plus the opportunity for long-term residual income through annual renewal commissions. These insurance policies often stay on the books for 8 years or more, creating dependable income through renewals.
  • Massive Market - The senior market, particularly baby boomers turning 65 and enrolling in Original Medicare, continues to grow rapidly. Selling Medicare Supplement plans helps you capture part of that demand while also offering coverage that fills gaps in Medicare Part A and Medicare Part B.

What is an FMO?

A Field Marketing Organization (FMO) is a support system for independent agencies agents selling Medicare, annuities, and other insurance products. FMOs help with everything from contracting with top insurance carriers to lead generation and CRM tools that support your book of business. Our FMO provides personalized training, marketing strategies, and back-end resources to help you succeed in Medicare sales.
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Sales Tips:

Selling Medicare over the phone gives you a powerful opportunity to connect with clients, while also saving them the hassle of comparing insurance plans online. Whether you’re focused on Medicare Supplement, Medicare Advantage, or other Medicare insurance products, remote sales can be highly effective.
Learn your demographic! Understand your Medicare beneficiaries’ needs and how supplement insurance helps them manage out-of-pocket costs like deductibles and copays. The better you anticipate these needs, the more you’ll increase enrollment and referrals.
Don’t be afraid to sell over the phone. According to Pew Research, 91% of seniors eligible for Medicare use a cellphone, and over half use a smartphone. Selling Medicare supplements over the phone opens new doors for enrollment while helping you build a stronger connection with your clients.

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

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

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

When selling Medicare Supplement plans, it’s critical to follow all federal and state Medicare insurance guidelines. Staying compliant not only protects your insurance license, but also helps you take advantage of guaranteed issue rights and special enrollment windows. Key points to remember:

  • The client must be enrolled in both Medicare Part A and Medicare Part B.

  • You cannot sell a Medigap policy to someone with a Medicare Medical Savings Account (MSA).

  • If your client has a Medicare Advantage plan, they must disenroll from it before Medigap coverage begins.

  • Medigap plans are guaranteed renewable regardless of health conditions, as long as premiums are paid.

  • Clients will pay a premium for their Medigap policy as well as their monthly Medicare Part B premium.

  • Medigap policies only cover one person. A spouse must purchase their own supplement insurance plan.

Medicare Supplement plans don’t cover things like dental, vision, hearing, or prescription drug coverage (Medicare Part D). If your clients want help with drug costs, you may also want to assist them with Medicare Part D enrollment.

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

Unlike Original Medicare, Medicare Supplement plan rates are set by private insurance companies, not the government. These rates can vary and are calculated using one of three common methods:

  • Community-rated – Age doesn’t affect the premium. Everyone in the plan pays the same rate regardless of age.

  • Issue-age-rated – The premium is based on your age at the time of enrollment and does not increase with age.

  • Attained-age-rated – Premiums increase as your client gets older, which is common across many insurance carriers.

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

Although private insurance carriers set eligibility criteria, federal law mandates guaranteed issue rights during specific enrollment windows. Every Medicare agent should understand:

The Open Enrollment Period for Medigap starts when someone turns 65 and enrolls in Medicare Part B. This lasts for six months and grants guaranteed issue rights.

Certain life events like moving out of a plan’s service area can also trigger a guaranteed issue period.

Not all Medigap plans are required to be offered during these windows—know which plans (like Plans A, G, and N) are available in your state.

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

Here are your key steps to get started in Medicare sales:

Partnering with an FMO
An experienced FMO can help independent agents navigate contracting, Medicare Advantage certification, and Medicare Supplement sales strategies. Partnering with the right FMO is a game-changer for new insurance agents entering Medicare sales.

Getting a Proper Insurance License
Before selling Medicare Supplement or Medicare Advantage plans, you’ll need to be licensed in your state. This is step one to selling Medicare and other health insurance products legally and ethically.

Purchasing Errors and Omissions Insurance
E&O coverage protects insurance agents against client claims of negligence. It’s essential for agents selling Medicare insurance, especially when managing multiple insurance products like Medigap and Medicare Advantage.

Completing the AHIP Medicare Certification
AHIP certification (AHIP Discount Here) is required to sell Medicare Advantage plans and many Part D prescription drug plans. While it’s not required for Medicare Supplement sales, most FMOs require AHIP for contracting across multiple carriers.

 

Who buys Medicare Supplement plans?

Medicare Supplement Guidelines

How Rates Are Set

Open Enrollment vs. Guaranteed Issue

How to Start Selling Medicare Supplements

Tips for Selling More Medicare Supplement Plans

If you’re serious about selling Medicare supplements and building long-term income from renewal commissions, give your business the time and focus it deserves. Use these strategies:

  • Nurture lead relationships and insurance leads

  • Stay active in your book of business

  • Partner with an FMO for Medicare sales training and marketing

  • Use CRM tools to track leads, policies, and renewals

  • Create a healthcare marketing strategy tailored to Medicare products

  • Get certified to sell in states with high Medigap demand