Senior Insurance Blog

 Kaiser Health News has an excellent article on how Medicare costs are increasing rapidly in traditionally low cost areas. The article focuses on the city of Provo, Utah where residents are among the healthiest in the country and its largest hospital is operated by Intermountain Healthcare, an organization praised by President Obama for providing high quality care at reasonable costs. Despite these factors, spending on Medicare patients has increased significantly in the last few years.

According to experts cited in the article, the major reason for this spike in spending is the use of expensive, new technologies, (such as the use of robotics for surgery) many of which are said to introduce little to no improvement over traditional methods. They go on to say that competition forces hospitals to adopt the latest technology, as patients always want the “best” care, which they equate to new technology. The new health care law is only going to exacerbate this problem. Now that reimbursement will be tied to quality health care, not only will hospitals be pressured to use the latest tools and techniques, but they most likely will extend patient stays, and use more aggressive (and expensive) treatments at earlier stages of illnesses.

The article goes on to say that what is happening in Provo, Utah is also happening in other traditionally low cost areas of the nation. The biggest concern among experts in the field is that these spikes are indicative of what will happen throughout the country as more hospitals begin to focus on higher quality care for Medicare patients, just at a more severe level.

Medicare Reimbursements Per Enrollee Interactive Map

CMS Will Spend $73 million to Upgrade its Websites

CGI Federal Inc. was awarded a five-year, $73.2 million contract to upgrade and continue maintenance of Medcare.gov, cms.hhs.gov, and MyMedicare.gov.  Together these sites see 500 million page views each year and provide information to 44 million beneficiaries and millions of other health care providers.

With the growing popularity of the phone & Internet sales process among senior insurance agents across the country, many are seeking out solutions to enhance the experience for both agents and consumers.  One solution that is being used to great success by many of our top producing agents is screen sharing software. 

For those of you who are unfamiliar with screen sharing software, it is software that you either install on your computer or access through a website that allows you to display whatever is on your Internet-connected computer onto other Internet-connected computers.  Additionally, most screen sharing software also allows you to grant permission for your audience to take control of your computer.  These two functions can also be reversed, so that you can view and control another Internet-connected computer.  Instant messaging, VOIP (talking), video conferencing, and file sharing are other features that may be included with screen sharing software to give you the ultimate communication tool.

If you haven’t yet looked into incorporating screen sharing software into your sales and other business processes, we highly recommend that you do.  Here’s why:

Increased interactivity with clients:  The biggest benefit is the interactivity that screen sharing allows.  No longer does your audience have to just sit and stare at a monitor throughout your whole presentation.  Your clients can actively take control of whatever program or file is on your computer (that you determine) and vice versa.  Your audience’s attention to the presentation will be much greater, and they’ll appreciate the more “in-home feel” without you actually being there.

More dynamic, engaging presentations:  No longer are you confined to just a PowerPoint presentation.  Since you have computer control throughout the entire presentation, you can make your presentations more dynamic by bringing up and showing various files based on the custom needs of the client.  Website, videos, music, and other files can all be presented whenever and however you want in real-time.  Then combine this with the IM, VOIP, and video conferencing features of most screen sharing software, and you have all the tools you need to give a highly engaging presentation.

Better reinforcement of training / education:  If you are experienced with giving more educational presentations, you know the challenge of getting your audience to remember what was actually taught.  A good example of this is getting seniors to remember many of the important points about their policies, or about the Medicare program in general.  Screen sharing isn’t going to solve the problem, but it can help improve the learning experience by allowing you to present periodic reinforcement activities.  Web based questionnaires are a great tool to accomplish this.  With the real-time feedback on their performance you can adapt your presentation accordingly to make it more effective.

Reduction of application errors:   Rework is something I think everyone can agree is bad for both business and our mental health.  With screen sharing you can ensure zero defects on applications as you can walk a client through an application, seeing exactly what they are typing.  The amount of time and money saved by eliminating application errors can be very significant over time, and that is just for the app process.  I’m sure you will find many areas in your business where such technology can eliminate further rework.

Better evaluation of the sales process:  Yet another great benefit of many screen sharing software is that you can record your sessions.  By recording your sessions you can evaluate what went right and what went wrong, and then use that data to improve your future presentations.  And after you record that perfect presentation, you can use that video as a training tool for others in your business, post it to your website to keep visitors longer, or even post it to YouTube and have it show up in the search engines to generate traffic to your site. Of course, always remember to follow HIPPA regulations and other common courtesies when recording, broadcasting, and disseminating information.

Noam Levey of the Tribune Washington Bureau is reporting that the recent health reform laws signed into law by President Obama may lead to lower Medicare premiums for our nation’s senior citizens. His report is based on last night’s issuance of an analysis on the new health legislation by independent actuaries at the U.S. Department of Health and Human Services. The analysis is highly regarded as it is seen as the first comprehensive look at the legislation by neutral experts.

Mr. Levey says that the report suggests that the Medicare program will remain solvent until 2029 – better than estimates prior to health care reform which had projected that the program would be doused in red ink around 2017. And according to a statement issued by HHS Secretary Kathleen Sebelius Medicare monthly premiums will be lower than otherwise expected due to several measures in the bill, such as Medicare cuts, higher taxes, and a commission responsible for Medicare savings.

Of course not all is rosy with the analysis of the legislation. Fox News’ report on the analysis states that the bill will raise projected spending by about 1% over 10 years, and could be even larger since the analysis warned that Medicare cuts in the law may be unrealistic and unsustainable. The analysis also projected that Medicare cuts could result in sending 15% of hospitals and other Medicare providers into the red, thereby reducing access to seniors.

The report also estimated that a large exodus from Medicare Advantage would occur due to reductions in payments to private Medicare Advantage plans that would eliminate many of the extra benefits currently offered. The analysis projects that Medicare Advantage enrollment will decrease by 50%. This would leave seniors to seek out alternatives such as Medicare supplements, or be saddled with larger out-of-pocket expenses.

Sources: HHS, Los Angeles Times, Fox News

On Sunday, the Senate version of the health care reform bill passed in December comes up for a vote in the House of Representatives.  Many journalists, political analysts, and politicians believe that the outcome of Sunday’s vote will either make or break the Obama presidency.  If the bill fails news outlets from NPR, CNN, Fox News and others are reporting that President Obama, as well as the entire Democratic Party, will be significantly weakened. 

If one needed validation of what is at stake, President Obama has delayed a trip to Asia in order to rally those in the Democratic Party who are still undecided or still opposed to the health care reform bill.  With the Obama Administration tying the health care reform bill so closely to his party, Democrats in opposition may have no choice but to vote yes or else see their overall influence and reputation greatly diminished with a failed bill despite a large majority. 

Rep. Dennis Kucinich (D-OH), who previously voted no in November, will now vote yes after having four meetings with the President.  Mr. Kucinich stated “You do have to be very careful that the potential of President Obama's presidency not be destroyed by this debate,” he said.  “Even though I have many differences with him on policy, there's something much bigger at stake here for America.” 

According to Mara Liasson at NPR, President Obama is also telling Democrats in opposition to health reform that despite their no vote, Republicans will still tie them to a failed bill and the Democratic base will exile them.  With such political arm-twisting, it will be interesting to see which Democrats have the gall to remain in opposition.

For those of you who would like to read the actual bill, you can find it here: http://i2.cdn.turner.com/cnn/2010/images/03/18/health.care.pdf

Over the next few weeks, we will be receiving rate information for Medicare Supplement Plans M and N from our carriers.  Of the two new plans, Plan N is shaping up to be one of the most attractive and popular insurance products on the market.

As many of you know, one of the biggest reasons seniors don’t or can’t get a Medicare Supplement is due to cost.  Plan N has been designed to be a cost-effective solution that competes directly with Medicare Advantage plans.  We believe many cost-conscious seniors will gravitate towards Plan N, as it offers the stability and standardization of a Medicare Supplement at a price point that is 25%-35% cheaper than the comprehensive and popular Plan F.  Thus, Plan N is a perfect alternative to Medicare Advantage because it allows you to increase your customer base and further elevate your income stream.  This incredible combination of lower price and higher accessibility is going to make Plan N the choice for most seniors in 2010, especially those who are healthy and don’t often need medical care.

The primary reason why Plan N is more affordable is because it requires clients to share the cost of their treatment, much like a Medicare Advantage plan.  Unlike a Med Advantage plan however, Plan N has no network restrictions and much lower out-of-pocket liabilities to the client.  Plan N is different from what is traditionally expected from a Medicare Supplement plan, these new benefit changes now make Medicare Supplements much more accessible to lower income seniors and more attractive to those who are healthy and wouldn’t otherwise see the need for one.

Though Plan F is currently the most popular Med Supp plan because it offers the most comprehensive coverage for the money, we think Plan N represents the future of Medicare.  Medicare can’t continue to shoulder the entire cost burden of rising medical costs and a huge boom in the senior population over the next decade.  If there is still going to be a Medicare in the future, CMS is most likely going to structure future plans so that seniors are going to have to share in financing their healthcare.

To obtain the new Modernized plans for your state with the addition on Plans M & N, Click Here

“Nobody wants to read your copy.”

This is the cold, hard truth about advertising according to popular copywriter Steven Pressfield, and I believe him.

There is a phenomenon in the advertising industry called “Client’s Disease.” Essentially every client, whether that client is your own organization or an external customer, mistakenly believes that because it cares about the product it’s advertising everyone else will as well.

The harsh reality is that no one cares, and it’s not because they are mean or have a grudge against you or your organization, it’s just that they have better things to do, such as solving their own problems.

Knowing and accepting this fact is half the battle in advertising. The other half is capitalizing on it by communicating to your audience that you can solve those problems. This is the only way to get your audience to even give your ad or website a few seconds of consideration. Though there is no concrete evidence, most experts agree that most people spend about 10-15 seconds to glance over a communications piece before deciding to continue to look into it or reject it. So it’s critical that your copy and other elements are finely tuned for maximum effect.

Here are 10 tips to enhance your copywriting so that your audience gets the message and decides to stick around long enough to buy into what you are selling.

1. Know your audience. More specifically, know what problems they want to solve. Also, know their demographics, interests, political affiliations, and other relevant info that can help you craft your message and gain their attention.

2. Communicate how your product or service solves your audience’s problem. Whether it’s protecting assets through insurance, increasing retirement income through an annuity, or getting the highest commission percentage possible, your audience has a need and it’s your biggest priority to tell them how you can meet it.

3. Explain why you are better than their other options. As an insurance agent or broker, you obviously have to deal with a lot of competition. So right after you tell your audience how you will solve their problem, you need to tell them why you’re their best option. Be very specific with this.

4. Tailor your message to the medium. One piece of copy isn’t going to universally work for all mediums. In fact, you may need a whole new message depending if you are communicating your message through a Google Ad, direct mail, e-Direct, or website.

5. Call them to action. Once you’re done explaining, it’s time to get your audience to respond. Whether it's getting them to call you, landing them on a specific page, or getting them to sign up, you need to tell them what is the first step they can take in solving their problem.

6. Be honest. Though everyone expects some exaggeration or puffery during the sales process, you must be careful to not step over the line into illegal territory that may lead to an expensive suit that can wreck your business.

7. Keep it concise. Keep your message as brief as possible and only focus on the audience and the solution they seek. No one cares about your rags to riches story or how your business has been around since the horse and carriage days.

8. Stay on message. If you are promoting solution X, then don’t get side tracked by also trying to promote solution Y that isn’t relevant to the problem. If you can get them to buy solution X, you’ll have plenty of other opportunities to promote solution Y.

9. Avoid clichés. People can immediately see laziness, especially in writing. If you’re using over-used and tired phrases or wording, such as “Step up to the plate and sign up now!” then your audience will tune you out, and you'll see your credibility diminished.

10. Proofread… and then proofread again.

As you can see, we have implemented both minor and major changes to our site to improve both the design and functionality of our site. We’ve implemented our new logo and color scheme, a new homepage design, added a drop down navigation bar, and most significant of all, we’ve added a new agent resource page that consolidates an array of useful information for you in one spot.

With all the changes to Medicare this year, we’ve created a dedicated Medicare 2010 information page that breaks down everything you need to know in an easy to digest format. We’ve created a tabbed panel for you to easily switch between the different types of information. On this dedicated Medicare 2010 information page you will find a concise overview, a tabled breakdown of all the plans, a list of Frequently Asked Questions provided by Mutual of Omaha, and links to major Medicare websites. We will update this page with any new info that may arise, so we recommend checking this page periodically. Here is a direct link to the page:

http://www.psmbrokerage.com/medicare-supplement-2010

Our resources page features the same tabbed panel structure for clear and easy to access information. On this page you will find a link to the aforementioned dedicated Medicare 2010 information page, a link to our E&O partner, links to helpful technology sites, information on incentives and events, information and links to educational resources, links to major news sites, and a convenient list of carrier contact info. We are always seeking the best resources for our agents; so when we discover them, know that we’ll post that information here first.

http://www.psmbrokerage.com/resources

At PSM, we’re always trying to improve our service to our agents, so we appreciate any feedback you may have on any of the changes we’ve made.

According to a report released Thursday by the Community Oncology Alliance and Avalere Health, Medicare currently only pays 56% of chemotherapy expenses and will further decline by 20% down to 45% in 2013. The report states that the average oncology practice currently loses $500,000 a year and many are being forced to pass on some or all of their losses onto patients with private insurance.

The Reuters article from which this post is sourced, interviewed Dr. Shannon Penland of Jefferson Medical Associates in Laurel. Mississippi. Dr. Penland explained that the more business she took in, the more money was lost. In just eight months since starting she amassed a $300,000 debt. She later went on to state that treating cancer is threatening the entire practice, and that she is considering leaving cancer care and going into internal medicine.

The report concludes that many cancer centers are losing money on patients and predict many will be forced out of business. The report also identified that patients in rural areas are the most likely to see their cancer treatment centers closed first. One other thing to note about the report is that it mentions that the cuts to Medicare will threaten other specialties in the medical field as well.

Special Notice: Big changes are coming to psmbrokerage.com. Over the next few days we will be making changes to our site. This will not affect functionality of our site, however you may see some visual inconsistencies during the process. The changes we are making aim to improve site navigation, provided added content, and refresh the overall look of the site.