If you knew a way to increase your revenue while helping your Medicare clients avoid financial disaster, would you do it? Well, cross-selling can do both, but many Medicare agents avoid it. To take your Medicare business to the next level, learn to identify cross-selling opportunities and understand why they work well for you and your clients.
Filling in Medicare’s Gaps
Original Medicare provides basic hospital and medical coverage, but it leaves many gaps that need to be filled with other products. Some of these gaps can be filled with private Medicare policies – Medicare Part D for prescription drug coverage, Medicare Supplement plans to control out-of-pocket costs associated with Original Medicare, or Medicare Advantage to bundle coverage and secure additional benefits. However, there may still be coverage gaps that can only be filled outside the Medicare system. This is where cross-selling opportunities come into play.
To determine your clients’ needs, focus on two things: Their Medicare coverage and their personal needs.
Cross-Selling with Medicare Advantage
Certain ancillary products pair well with Medicare Advantage plans because these policies typically come with deductibles and copays that enrollees must pay when receiving care. Seniors who experience a serious illness or injury may struggle with the unexpected costs.
Hospital indemnity insurance provides a solution. This is a supplemental insurance policy that pays a benefit directly to the insured in the event of a hospital stay or other covered event. Coverage typically starts at around $10 a month, and benefits of $1,000 or more are available.
Cancer insurance is another option. Cancer treatments can be costly, and someone with a $0 premium Medicare Advantage plan may not have sufficient coverage, resulting in hundreds of dollars a month in out-of-pocket costs. Cancer insurance offers an additional layer of protection.
Cross-Selling with Medicare Supplement Plans
If you’re not selling Medicare Supplement plans, you really should consider starting. Although Medicare Advantage enrollment has increased, millions of Medicare enrollees still choose to remain in Original Medicare and may require assistance with out-of-pocket expenses.
Although people with Medicare Supplement plans have fewer out-of-pocket costs, they may still benefit from hospital indemnity or cancer insurance to ease the financial burden of unexpected illnesses.
Dental, vision and hearing insurance may also make sense. Although some Medicare Advantage plans offer these benefits, they are not covered under Original Medicare or Medicare Supplement plans. (And even people in Medicare Advantage may want these plans if they don’t have coverage or their coverage is insufficient!)
Asking the Right Questions
When you ask the right questions to understand your clients’ needs, you can also identify opportunities for cross-selling.
- Do they have savings to cover unexpected out-of-pocket expenses? If not, they may want hospital indemnity or cancer insurance.
- Have they made plans to cover home health or non-medical care? Long-term care insurance provides valuable coverage, but the premiums may put it out of reach for some individuals. Short-term care insurance offers a more affordable alternative, with coverage periods typically lasting one year or less.
- Are they worried about final expenses? Life insurance or final expense insurance may be appropriate. Some life insurance policies also provide hybrid long-term care benefits.
- Are they worried about running out of money? An annuity could be a good fit.
- Do they have sufficient dental, vision, and hearing coverage? If not, a supplemental plan may be a good option.
- Do they have a spouse under the age of 65? When one spouse becomes eligible for Medicare but the other spouse isn’t yet, it can be challenging to secure affordable coverage. This is especially true when the older spouse used to provide health insurance through a job-based plan. If ACA plans are too expensive, an Affordable Choice plan from ManhattanLife might be a good fit.
Cross-selling can be good for you and your clients, but remember to always stay compliant with CMS regulations. You need to stick to your Medicare Scope of Appointment, and you’ll have to schedule a separate appointment if clients want to discuss non-health products. Check with CMS for the full and current regulations.
Do you need help leveraging cross-selling opportunities? The Western Asset Protection team is here for you. In addition to training, tools, and resources to help you succeed, we offer access to a wide array of products, including hospital indemnity, life insurance, annuities, dental, vision, and more. Contact us.