Getting Started Selling Medicare Supplements

How many times have you heard that the Medicare Supplement market is “booming” with opportunity? (Insert commonplace statistic about the number of baby boomers turning 65 here.)

We won’t repeat the same old numbers (and yes, we’re guilty of mentioning them, too). Instead, we’ll tell you how you can capitalize on the opportunities that selling Medigap insurance provides and make baby boomers’ business all yours.

Why Sell Med Supps

With Medicare Advantage sales far less abundant outside AEP, landing new prospects during spring, summer, and mid- to late-winter can be tough. But consider this: 54 percent of Medicare beneficiaries are in an MA plan. The remaining 46 percent in Original Medicare could benefit from the extra coverage of Med Supps.

Here’s what makes selling Medicare Supplements so great:

About Med Supps

Standard Benefits

All Med Supp plans (A through N) are standardized. This means plans with the same letter offer the same benefits from carrier to carrier and in almost all states. (In Massachusetts, Minnesota, and Wisconsin, standardized plans can be changed without federal approval.) Conversely, plans with different letters offer different benefits.

If a company wants to issue Med Supp policies, they must offer Plan A.

Standard Medicare Supplement Plans & Benefits

BenefitsABDG1KLMNC4F4,5
Part A coinsurance and hospital costs up to an additional 365 days after Medicare benefits are used up
Part B coinsurance or copayment50%75%2
Blood (first 3 pints)50%75%
Part A hospice care coinsurance or copayment50%75%
Skilled nursing facility care coinsurance  50%75%
Part A deductible 50%75%50%
Part B deductible        
Part B excess charge        
Foreign travel exchange (up to plan limits)  80%80%  80%80%80%80%
Out-of-pocket limit3N/AN/AN/AN/A$6,940 ($7,220 in 2025)$3,470 ($3,610 in 2025)N/AN/AN/AN/A

1Enrollees in high-deductible Plan G must pay for their Medicare-covered costs up to the deductible amount before the Med Supp begins to pay.
2Med Supp pays 100% of the Part B coinsurance, excluding copayments of up to $20 for some office visits and up to $50 for ER visits that don’t lead to inpatient admission.
3Upon meeting your annual out-of-pocket (OOP) limit and annual Part B deductible, the Med Supp pays 100% of all covered services for the remainder of the calendar year. OOP limits are for CY 2023.
4Plan only available to those eligible for Medicare before January 1, 2020.
5Enrollees in high-deductible F must pay for their Medicare-covered costs up to the deductible amount before the Med Supp begins to pay. Only available to those eligible for Medicare before January 1, 2020.

Note: A check mark means the plan pays 100% of the benefit. Med Supp plans are standardized differently in MA, MN, and WI.
Source: Medicare.gov


Premium Cost

Med Supp plans that offer more coverage often have higher premiums (e.g., Plan G usually has a higher premium than Plan A).

Guaranteed Renewable

All Med Supp plans are guaranteed renewable, meaning clients can stay in their plan if they continue to pay its premiums.

Guaranteed Issue

Med Supp Plans A, B, C, F, K, and L are guaranteed issue for people eligible for Medicare before January 1, 2020; Med Supp Plans D, G, M, and N are not. Hence, those eligible for Medicare before 2020 can’t join or switch to Plans D, G, M, and N outside of their Medigap open enrollment period if they aren’t healthy enough to pass underwriting.

Plans D and G are guaranteed issue plans for people newly eligible for Medicare on or after January 1, 2020. This means, individuals who became eligible for Medicare in or after 2020 can switch to Plans D and G outside of their Medigap Open Enrollment Period, even if they have past or present health conditions, as long as they have a guaranteed issue right.

Learn more about how to switch a client’s Med Supp plan

Comparing Med Supp Rates with Market AdvisorTM

Since beneficiaries get the same benefits from Med Supp plans with the same letters, offering plans from carriers with the most competitive and stable premiums is key. You can easily target these plans through Market AdvisorTM, a state-of-the-art plan comparison tool you can access when you become a Ritter agent. You’ll be able to quote Med Supps, keep track of Med Supp clients, submit e-applications for some carriers, and obtain real-time underwriting feedback. Fill out the form here to get started with Market AdvisorTM!

Talking with Clients

If your client is interested in a Med Supp plan, it’s important you ask them about their health, lifestyle, medical needs, budget, and preferences.

Med Supp plans can have different rates based on an individual’s zip code, age, gender, use of tobacco, and marital status. And while all plans give beneficiaries the flexibility to visit any Medicare provider in the U.S., only certain ones include a foreign travel emergency benefit.

Some clients are willing to pay more for the security that benefit-rich Med Supps offer, especially if they have or foresee health issues that could lead to large out-of-pocket expenses. Additionally, know that there are times when you should recommend Med Supp plans K, L, M, and N.

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People appreciate an agent who provides products that fit their wants and needs. From our experience, those who have a large, diverse portfolio that includes multiple Med Supps build the strong client relationships that allow their businesses to thrive.

Not affiliated with or endorsed by Medicare or any government agency.

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