Medicare
Advantage, did you know?
The Medicare
Modernization Act signed into law in 2003 by President Bush
signaled the most sweeping changes in Medicare in 40 years.
Not only did the act create Medicare Part D, the prescription
drug plan, it also ushered in Medicare Part C, Medicare Advantage
plans. Many agents have sat on the sidelines while Medicare
Advantage plans multiplied. If you are active in the market,
you may have lost clients to Medicare Advantage plans.
Are Medicare
Advantage plans new competition for the traditional Medicare
Supplement producer or an opportunity? At Senior Market Sales,
we view Medicare Advantage as a new product, a new market and
an opportunity. Consider the following differences:
| Medicare
Advantage |
Medicare
Supplement |
|
|
Low monthly premiums, some as low as $0 and others as
high as $60
All rates are the same per service area (normally county)
regardless of age or sex |
Monthly premiums that typically range from $85-$150
Rates are frequently attained age meaning rates increase
as the client grows older; sex distinct rates are common |
|
Guaranteed Issue |
Underwritten with turning 65 and MA disenrollments as
notable exceptions |
|
Co-pays when receiving treatment and maximum out-of-pocket
expenses typically ranging from $2,500 to $5,000
Benefit structure varies by plan
Annual plans that must be approved by CMS
Open enrollment periods and lock-in periods restrict
when sales can be made
Can have networks such as HMO and PPO plans or no networks
such as Private Fee-for-Service plans |
Covers remainder of provider bill after Medicare pays
on most popular Plan F, with variations depending on the
plan
Standardized benefit plans
Guaranteed renewable plans that fall under state insurance
department oversight
Sales can be made throughout the year
Typically can go to any doctor or hospital; select plans
provide lower rates for hospitals under contract |
With the senior population expected to grow from 42.4 million
in 2005 to 61.3 million in 2020 , sales of both Medicare Supplement
and Medicare Advantage plans will grow. Clients have more options
available today than ever before.†
Senior Market
Sales, Inc. considers Medicare Supplement, Medicare Advantage
and the Prescription Drug Plan all elements of Medicare Solutions.
An agent in the senior market selling health coverage should
be well versed in all three programs. It is important to know
the differences between plans and it is good to have these plans
in an agent’s portfolio.
To
become certified to sell Medicare Advantage or contracted with
one of our carriers call our Medicare Solutions hotline at 1-877-645-0147.
