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Medicare Blog | Medicare News | Medicare Information

Optimistic Forecast for Med Supp Market

Posted by Lauren Hidalgo on Fri, Nov 04, 2011 @ 08:40 AM

Medicare SupplementsIn the last five years, insurance producers have gone through exciting and risky times. Medicare insurers are on the rise and have added millions of policyholders while other sectors of the insurance industry have seen very little growth. Though the changes in the market have yet to end, there are several reasons to be optimistic about the Medicare Supplement market in the coming years.

  1. Tremendous growth of Medicare beneficiaries. The projected increase from 2011 to 2030 is 70%, from 48.6 to 80 million. This is mainly due to the Baby Boomer generation qualifying for benefits at 3 million a year.

  2. Prescription drug costs are lower. Even with the talk about health care costs increasing, the Part D donut hole is closing and seniors are now paying less for their prescription drugs than they were in 2006. Also, due so several brand name medications becoming generics, this amount will continue to decrease, at a rate of approximately $0.65 a day until 2015.

  3. Quality Star Ratings. There is a consensus among Medicare agents that customer service from Medicare Supplement carriers exceeds that from Medicare Advantage carriers. However, in order to provide incentive for Med Advantage carriers to provide good service, CMS is now offering additional compensation for those carriers who score above three stars and the opportunity to sell year-round for those Med Advantage carriers with five stars.

  4. Employers favor individual plans. Several larger Fortune 500 companies are beginning to no longer offer group retiree benefits. Thus, those retirees have to shop the individual market for their plans. Though call centers have captured the majority of this business, the replacement market is growing and the trend is expected to continue.

  5. Interest in shopping online. The Boomer generation is very open to researching products online, and reaching buyers via Pay-Per-Click and Search Engine Optimization is becoming increasingly popular. Those agents interested in selling Medicare Supplements online have an advantage, especially for those seniors just turning 65.

Medicare is a growth-driven market due to the demographic shifts in the United States. With all of the agents needed to serve these seniors and the ability to reach infinite numbers online, the senior insurance market has many opportunities ahead. We at Precision Senior Marketing are dedicated to providing you with the best Med Supp products and Med Supp sales techniques to get the edge on the competition. Feel free to contact us directly at 800-998-7715 for more information.

Please give us your feedback!
Have you experienced the growth opportunities in the Medicare market? What do you think of the Med Advantage carriers with five stars getting to sell all year long? What aspects of the market excite you the most?

Source: LifeHealthPro

Additional Updates:
  • MedAmerica Now Available in Iowa and Michigan - Learn More
  • UnitedHealthcare Med Advantage Plan Names & Enrollment Processing Info - Learn More
  • UnitedHealthcare Plan Selection on Applications - Learn More
  • Gerber Life Medicare Supplement Rate Increase for Missouri - Learn More

Tags: MedAmerica Transitions, senior market news, Medicare Advantage, Medicare Supplement, health insurance news, insurance news, Gerber Life Medicare Supplement

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