How Medicare Agents Can Offset Lost Commissions With Ancillary Cross-Selling

Why Ancillary Products Are Becoming Essential for Medicare Agents

As Medicare commissions continue to face pressure and Medicare Supplement (Med Supp) rate increases become a growing concern, many agents are looking for new ways to protect both their clients and their business. One strategy gaining momentum is ancillary cross-selling — not simply as an added revenue stream, but as a way to fill real coverage gaps that Medicare beneficiaries often don’t realize they have.

In a recent Medicarians presentation, given by Joanne Giardini-Russell of Giardini Medicare, she shared how her agency transformed its approach to ancillary products after experiencing firsthand how quickly a client’s health situation can change. What started as a missed opportunity became a complete shift in mindset around cross-selling cancer, hospital indemnity, recovery care and heart attack/stroke products.

A Real-Life Wake-Up Call

Joanne opened with a story that reshaped her agency’s process.

An agent submitted a cancer plan application for a client. The very next day, the client went to the ER dizzy and left with a glioblastoma diagnosis. Because the policy carried a 30-day waiting period, the coverage would not pay out.

The agency had actually been speaking with the client since April while preparing for his Medicare transition. Looking back, Joanne said they realized they should have started the ancillary conversation months earlier.

Her takeaway was simple: ancillary products are not just about commissions. They are often the right thing to do for the client.

Medicare Doesn’t Cover Everything

Medicare beneficiaries — especially those enrolling in Plan G or Plan N — assume they are fully covered. But agents know that is not always true.

Joanne emphasized that ancillary conversations should focus less on “selling products” and more on helping clients understand real-life financial exposure, including:

• Travel costs during treatment
• Lost income for caregivers
• In-home recovery needs
• Hospital deductibles
• Non-medical expenses during a serious illness

She stressed that clients often do not even know products like cancer plans or short-term recovery care exist.

The Four Ancillary Products Her Agency Focuses On

Joanne shared that her agency consistently focuses on four core ancillary categories:

• Cancer plans
• Heart attack and stroke coverage
• Hospital indemnity plans
• Recovery care/short-term care

One product, recovery care, helps clients pay for in-home assistance after health events that impact activities of daily living.

Her agency believes this area will continue growing as America’s population ages and families increasingly look for alternatives to personally providing care for parents or loved ones.

The High-Deductible Plan G Combo Strategy

Another major topic was using High-Deductible Plan G alongside ancillary coverage.

Joanne explained that many consumers misunderstand High-Deductible G plans, believing clients receive no benefits until the deductible is met. In reality, Original Medicare still pays its share, while the deductible acts as a financial backstop.

Her agency now pairs High-Deductible G with ancillary products such as:

• Hospital indemnity coverage to offset the Part A deductible
• Cancer coverage for major diagnoses
• Recovery care for in-home support
• Heart attack/stroke plans for added lump-sum protection

According to Joanne, clients are responding positively to this cross-sell strategy because the package can often cost less than a traditional Plan N while reducing long-term exposure to Med Supp rate increases.

Cross-Selling Helps Offset Lost Revenue

For Medicare agents concerned about declining commissions or changing Medicare economics, ancillary products are becoming an important revenue opportunity.

Joanne admitted her agency previously did very little ancillary business. In 2024, they sold only 37 ancillary policies through one carrier.

After intentionally building ancillary conversations into their process, production jumped dramatically:

• 141 plans in 2025
• 156 plans already year-to-date in 2026 (as of the writing of this article)

She estimated the agency could generate an additional $150,000 — $200,000 in commissions from ancillary products this year from one carrier alone.

More importantly, she said the products create “sticky” client relationships because clients now hold multiple policies through the agency.

Make Ancillary Part of the Conversation

One of Joanne’s strongest messages was that ancillary sales improve when agents simply make them part of their routine process. When it comes to ancillary, agents should always be:

• Building it into scripts
• Discussing it during needs analysis
• Bringing it up with still-working 65-year-olds
• Sharing real-world stories clients can relate to
• Educating clients before health issues arise

Her agency found that once agents became comfortable talking about ancillary products consistently, sales naturally increased.

Final Thoughts

Ancillary cross-selling is quickly becoming more than an optional add-on for Medicare agents. As commissions tighten and Med Supp rate increases continue to be a concern, these products can help agents create new revenue opportunities while providing meaningful financial protection for clients.

The biggest lesson from Joanne’s presentation was clear: agents who confidently educate clients about coverage gaps — before a health crisis happens — position themselves as long-term advisors rather than just plan enrollers.

Senior Market Sales^® (SMS) invites you to watch the video of Joanne’s presentation along with other content from the 2026 Medicarians event by going to SMS’ Medicarians Recap Page.

Insights From SMS’ Ancillary Training Series

SMS recently hosted a training series highlighting the importance of ancillary products in a Medicare business strategy. The series provides valuable insights into how these products fit alongside existing Medicare offerings while addressing common agent questions and cross-selling challenges.

Licensed SMS staff and carrier representatives share practical strategies, real-world examples and guidance on integrating ancillary products into your sales process to create additional value for both agents and policyholders.

The full training series is available exclusively through your MySMS account under the Resources section. If you do not yet have a MySMS account and would like access to the series, fill out the form.