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Thursday the Supreme Court upheld the entire proposed health care law, concluding that Congress was acting within its powers under the Constitution to require most Americans carry a health insurance policy. This ruling is considered a victory for President Obama and the Democratic Party, passing the biggest reworking of the health care system since Medicare was introduced in the 1960s. This ruling also eliminates disruptions for hospitals, doctors, and employers who have spent the last two years preparing for the law to be put into place.

How has the Patient Protection and Affordable Care Act affected the senior market since its inception in 2010 and how does Health Care Reform impact the future of Medicare Supplements?

1. Modernized Medicare Supplement plans, including new Plans M and N, created new opportunities for agents to sell more economical options for coverage.
   
   
2. New carriers entering the market are providing more choice for consumers. The added competition is healthy and promotes new innovations to the market, including telephone and electronic applications, which can help reduce pending requirements and speed up issue time.
   
   
3. Many employers are reconsidering if, or for how long, they should offer group coverage for their retired workers due to Taxation of the Retiree Drug Subsidy (RDS) effective January 1, 2013. This tax can affect large company’s bottom line by tens and hundreds of millions and many have already started transitioning from group to individual coverage using a Medicare Coordinator model.
   
   
4. Deficit reduction talks have the politicians from both parties talking about ways to save money with Medicare. One suggestion is to add copayments to all Medicare Supplement plans, not just Plans M & N. Another proposal suggests charging up to a 20% tax on seniors choosing plans with First Dollar Coverage.
   
   

Other important things to note pertaining to the senior market is that from now until 2020 the “donut hole” is still in effect, with seniors receiving a 50% discount on covered brand name drugs; and, Medicare Advantage will continue with payment system reforms laid out in the ACA.

However, the debate is far from over. With the January 1, 2014 date of implementation and a Presidential election looming, there is certain to be several repeals and proposals before the final version of the health care law is agreed upon and actually goes into effect.

As an agent in the Medicare Supplement market, don’t worry. Medigap plans are the least impacted by health care reform so no big changes are on the horizon. Reduction in Medicare Advantage payment rates and the impact this will have on plan benefits appears to be the biggest unknown. For clients looking to avoid any unforeseen surprises, Medicare Supplements still appear to be the best solution for many of your clients.

Source: Red Pen Edition, Wall Street Journal, Healthcare.gov

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A recent study by America's Health Insurance Plans (AHIP) commissioned by American Viewpoint, Inc. concluded that there is a high rate of Medicare Supplement policyholder satisfaction (90% of those polled), comparable to the survey results in 2009 (91%) and 2005 (87%). The survey asked Medigap enrollees about both their satisfaction and experience with their coverage. Medicare Supplement coverage continues to be an important option to Medicare beneficiaries and their survey concluded:

• Nine out of ten (90%) Med Supp policyholders are satisfied with their coverage.
  
  
• Over half of enrollees (79%) say their Med Supp policy is excellent or good value for the money.
  
  
• Just over nine out of ten (91%) would recommend a Med Supp plan to a friend or relative who they become eligible for Medicare benefits.
  
  
• Policyholders highlighted several benefits when asked what they liked most about their coverage, including limits on out-of-pocket costs, ease of dealing with medical bills and paperwork, and being able to budget for unexpected medical costs.
  
  
• Enrollees also appreciated their freedom of choice for doctors, and that their plan covered hospital expenses and physician costs not covered by traditional Medicare.
  
  
• Top concerns Medicare beneficiaries had were out-of-pocked loss, maintaining financial security and peace of mind.

The study also showed that enrollment in Medigap is stable with 49% of those polled having maintained the same coverage for the past five years, and an additional 20% purchased for the first time during the five year period. Of those polled, 39% transferred from their Employer-sponsored coverage when they became eligible, and 34% switched from another form of coverage.

With client satisfaction up, the Boomer generation aging into the market, and great new products like Combined Insurance, Stonebridge Life, and Heartland National becoming available in new areas, now is a great time to be selling Medicare Supplements. Feel free to call a marketer at 1-800-998-7715 for advice on finding a target niche and what new products would fit into your portfolio.

Source: ProtectMedigap.org

• PSM Partners with Norvax to Provide Essential Sales Tools for Today’s Independent Agent - Learn More
• Heartland National Med Supp New Telephone Application - Learn More
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• New! Combined Insurance Medicare Supplement - Learn More

Stonebridge Life Insurance Company has released a new Medicare Supplement that's easy to sell, offers incredible affordability, and is backed by the strength of an industry leader. This will be one of the most sought after products for independent agents in 2012.

Stonebridge Life Insurance Company is a Transamerica company with more than 20 markets in the Americas, Europe, and Asia. Currently, Stonebridge Life covers over 3.7 million consumers with a variety of life, health, accident, dental, and now Medicare Supplement insurance plans. They offer quality products with quick response times as well as courteous and dependable service.

Give your clients a Med Supp they can truly count on:

• Competitive Rates
• Excellent Commissions
• Advancing Available
• E-Application Available
• A+ Superior 2 out of 16 as of 4/27/11 rating by AM Best

Stonebridge Medicare Supplement states:

Stonebridge Medicare Supplement resources:

PSM encourages independent insurance agents to request information by visiting the link below and/or call 1-800-998-7715 to learn more about the new Stonebridge Life Medicare Supplement product.

• New! Combined Insurance Medicare Supplement - Learn More
• Stonebridge Life Medicare Supplement Now Available - Learn More

Great news! Combined Insurance will soon release a new Medicare Supplement, with some of the most competitive rates in the market today. This opportunity offers an ideal blend of competitive premiums as well as terrific agent compensation, all while being backed by one of the industry’s most customer-centric, "A" Rated carriers*.

Combined Insurance founder W. Clement Stone had the desire to "make the world a better place for this and future generations," a philosophy that is still very evident in how Combined Insurance conducts business today.

• "A" Rated A.M. Best Carrier
• Competitive Premiums
• Industry-Leading Commissions

• New Co-Op Lead Program
• Advancing Available

Release States:
Alabama, Illinois, Kentucky, Mississippi, Oklahoma, South Carolina, South Dakota, Tennessee

*Limited Time Offer* - 50 Free Senior Market Prospects available once your appointment is complete!

Give your clients the peace of mind they deserve, instantly download free sales materials and rates here.

• New! Combined Insurance Medicare Supplement - Learn More

Agencies grow using a variety of marketing, some more common than others. If you've reached a brick wall and your pipeline isn't as full as you'd like it to be, now is the time to look into jump starting your marketing techniques from a new angle. Although some marketing may seem unorthodox, as Maribeth Kuzmeski from Red Zone Marketing advises, "It's how you get your message out and how you drive others to you. There's not an advisor I know who has too many people to see."

The blog last week looked at using social media to connect with prospects. Here are a few other overlooked tactics that could give your business the jolt you have been looking for:

1. Virtual Appointments. In our internet age, face-to-face meetings no longer have to mean in person. Several web-based video meeting services, like GotoMeeting and Skype, are available for you to meet with your clients without leaving your business. When prospecting over the phone, prospects might feel more at ease working with you if they are able to put a face to a name. Especially with seniors just turning 65 and familiar with internet tools, you will be able to walk through the paperwork to get them contracted more efficiently without sacrificing the personal touch of meeting face to face.
   
   
2. Community involvement. Not only is getting involved in charitable organizations good in and of itself, it's also a great way to network with prospects and build relationships. Whether it is through your religious place of worship or another volunteer opportunity in your community, get to know the people you work with and fill them in on what you do. Chances are, someone there or someone they know could be an excellent referral for your future business.
   
   
3. Webinars. It's becoming increasingly difficult for prospects to commit to a seminar or event, however with a webinar you can potentially meet with more people while cutting the costs associated with planning an event. Using the same platforms as your virtual appointments, you will be able to educate a group of prospects leading to new clients.
   
   
4. Client surveys. Doing a yearly survey of your current clients is a great way to find out who is willing to give a referral as well as what products or services your current clients are also interested it. This too, will identify who might be interested in adding a final expense, short term care or annuity to their portfolio, as well as show what products may be missing from your portfolio that are of interest to your clients.
   
   
5. Direct mail. Surprise! As more and more agents have favored e-mail marketing some seniors have become "turned off" by the volume they are now receiving. This has made them more receptive to direct mail pieces again, and the response rates have increased in the last year.

Whether it's meeting with clients virtually or getting involved in your community, the success of your agency depends on how well you execute your marketing ideas. As John Comer, CFP or Comer Consulting acknowledges, "Marketing is easy to understand but hard to execute." If you have any questions about executing an unconventional marketing strategy, call your PSM marketer at 1-800-998-7715 for tips and techniques to get it off the ground successfully.

Please give us your feedback!
What unconventional marketing strategies have you tried? What do you find the most difficult aspect of your agency's marketing? Is there any topics you'd like to see discussed on the blog as far as techniques to guide you through your marketing efforts?

Source: InsuranceNewsNet