Episode Summary
This podcast episode featured a panel discussion with executives from leading Medicare supplement carriers sharing their insights and strategies for selling Medicare supplements in 2023.
A key theme was the trend toward household discounts to incentivize selling Medicare supplement plans to two people in the same household. Carriers like UnitedHealthcare, Cigna, and Allstate now offer discounts ranging from 10-20% off when two people enroll in plans together. The rationale is data showing better claims experience when two people live together. This makes household discounts an attractive option for improving retention.
The panelists also emphasized the importance of rate stability for maintaining clients in the fluctuating Medicare supplement market. As new carriers enter with low introductory rates, retaining clients becomes more challenging. UnitedHealthcare touted its history of minimal rate increases, including just 3.6% over 7 years in Texas. Aetna acknowledged they may not always have the lowest rates as competition intensifies, so they focus on added value through technology, service, and support.
Leveraging brand power was another key topic. Allstate's Medicare supplement business formerly operated as National General. They aim to maintain National General's innovative approach while benefiting from the boost in brand awareness and trust that comes with the Allstate name. Liberty Bankers also discussed the importance of brand reputation.
Optimizing technology to streamline Medicare supplement enrollments was a priority for carriers like Aetna and Cigna. They are prioritizing tools to make it fast and easy for brokers to enroll clients digitally. Medico highlighted their in-house, U.S.-based service model with no third-party outsourcing and direct agent access to underwriters.
Several carriers promoted cross-selling opportunities, such as adding dental, vision, and hearing coverage or hospital indemnity plans to Medicare supplement policies. This allows brokers to offer one-stop shopping and generates additional commissions. For example, Cigna's dental/vision/hearing product is selling 20x higher than projected.
When asked about the future of Medicare supplements, the executives agreed the market is evolving due to factors like Medicare Advantage growth and new legislation. But they see opportunities for carriers who embrace change and adapt. In particular, those who optimize technology, provide value beyond just rates, and make the selling/enrollment process smooth and simple will remain competitive. The takeaway was that Medicare supplements still play an important role for brokers.
In summary, the discussion provided valuable insights into Medicare supplement carrier strategies for standing out in an increasingly competitive environment in 2023 and beyond. The focus is on providing the best overall value through great rates, service, technology, and innovative products.
Timestamps
(0:00:00) - Broker link: 2023 kickoff event for Medicare supplement
(0:00:41) - Welcome to the broker link, where we empower insurance agents to sell more
(0:01:35) - Brian Durham is a Cowboys fan, born and raised in Dallas
(0:03:45) - How do you keep people coming back to United AARP
(0:04:57) - Mike: Rates in the Medicare supplement market can be a roller coaster
(0:06:10) - Allstate insures one-third of America, according to the president
(0:07:28) - Jason Delice is the national sales director for Liberty Bankers
(0:11:38) - Jim, you've changed jerseys recently. What is it that took you to your current position
(0:13:06) - On our new Uhica plan, we do have a household discount
(0:14:02) - Allstate is looking to enter the household with a Medsup
(0:18:29) - How do you use cross-selling to get more med subs
(0:19:35) - You can almost double your commission by selling a hospital indemnity plan with a Medicare advantage
(0:21:49) - What is the future of Medicare supplement? That's a great question
(0:22:52) - You asked about cross-selling and prosperity. I think that's important
(0:24:00) - If you are getting active in the med submarket,
(0:24:53) - Medsup is still a great solution for a lot of people in Texas
(0:25:46) - We empower insurance agents to sell more, earn more, and stay independent
