The Book of Business Download is Here!

You're busy each day meeting with clients and submitting business. The last thing you want to spend a lot of time on is figuring out what types of policies each of your clients have.

Fret no more. Mutual of Omaha's new Book of Business download is available now, and provides what've you've been wanting - a complete list of the in-force Mutual of Omaha policies* you've sold in one easy-to-sort file.

Why Use the Book of Business Download?

It makes finding information about your clients' in-force policies super easy, so you'll be more informed about your clients' coverages and be positioned to answer any questions about their policies.

Refer to the flyer for details on how to use the Book of Business download.

View the Book of Business Flyer

Note: If you currently have pop-ups blocked on your internet browser, you will need to change the setting to "Allow" to see Book of Business on SPA. Policies sold under a Special Agent contract are not accessible to the writing Special Agent.

As the 2023 Medicare Open Enrollment season winds to a close, and beneficiaries and enrollees finalize their decisions, nearly half, 48.7%, of people eligible for Medicare have decided on Medicare Advantage plans, up from 46.1% in March of 2022. Based on the Centers for Medicare & Medicaid Services (CMS) enrollment data for March 1, 2023, total Medicare Advantage (MA), including Medicare Advantage with Prescription Drug Plan (MA-PD) membership, stood at 31,753,301 with a net gain of 2,276,490 members from March 1, 2022. Medicare stand-alone prescription drug plans (PDPs) covered 22,533,411 members as of March 1, 2023, a net decrease of 910,978 from the previous year. Surprisingly, nearly 80 percent of MA enrollees selected one of 10 insurers, out of the 294 offering plans in 2023. This brief assesses Medicare Advantage and PDP performance, market share and market penetration by state as of March 1, 2023.

Medicare Advantage (MA) Membership

Medicare Advantage (MA) market penetration remains strong; however, there is still abundant opportunity for growth with 48.7% of the nearly 65.2 million people eligible for Medicare enrolled in a MA plan. According to CMS Medicare Advantage enrollment reports aggregated by Mark Farrah Associates (MFA) in Medicare Business Online™, total Medicare Advantage plan enrollment, as of March 1, 2023, increased 9.8% from March 2022. The top ten companies, each with more than 300,000 members in this segment, collectively provided coverage for nearly 80% of the market. Most leading MA companies realized year-over-year growth with an overall net gain of 8.2%.

MA Leading Plan Performance

There are 294 insurers covering the MA marketplace in the United States, however nearly 80 percent of MA enrollees selected one of only 10 insurers.  As of March 2023, UnitedHealth continues to dominate in this highly competitive segment. With over 9 million enrolled, UnitedHealth commands 28.5% of the MA market. Humana ranks second with nearly 18% market share and over 5.6 million lives. CVS maintains the third position, enrolling approximately 3.37 million, and Elevance Health (formerly Anthem) follows, with over 2 million lives. Together the top three insurers cover 56.9% of the MA market.

Source: https://www.markfarrah.com/mfa-briefs/nearly-80-percent-of-medicare-advantage-enrollees-covered-by-10-insurers/ 

Today, we'll be discussing the expectation of agents during telephonic enrollments. Although what we'll discuss mainly pertains to agents working in call centers, this information is certainly beneficial for all agents if you have a few minutes to spare. Recently, a carrier conducted an audit and found that most agents missed five key elements during telephonic enrollments. It's crucial for agents to be aware of CMS and Carrier expectations when conducting these enrollments, not only to protect the client, but also to safeguard themselves from corrective action.

Summary of Benefits 

First, it's critical that agents review the Summary of Benefits before completing the enrollment process. This document contains important information about the plan and must be completed by agents in accordance with the approved script requirement. Agents must also ensure they accurately answer any additional questions asked by the applicant or their legal representative, and provide accurate information on plan details described in the SOB. This includes details such as benefits, costs, and coverage limitations. By doing so, agents can provide the applicant with a clear and comprehensive understanding of the plan, which ultimately leads to a successful enrollment process.

Required Disclosures

During telephonic enrollments, agents must read all required and relevant disclosures. as outlined in CMS approved scripts, for the specific plan that the applicant is interested in. Agents should collect agreement and understanding from the applicant regarding these disclosures to confirm that everyone is on the same page and that the applicant fully comprehends what they are signing up for. These disclosures may be presented in various formats such as pop-up boxes or required statements and must be presented to the applicant clearly and concisely to ensure transparency and compliance with CMS and Carrier expectations. 

Complete the Application

When completing the caller's application, the agent must ensure they accurately enter the applicant's contact information, payment options, language preference, and alternate format election.

Additionally, the agent must:

•    Provide the name of the plan that the applicant is enrolling in. 
•    Advise the applicant of the plan's effective date. 
•    Confirm with the applicant that they are ready to complete the enrollment process. 

Call Closing

It's important to provide a compliant call closing to wrap up the call. To do so, you must provide the caller with the carrier name and customer service phone number so they know who to contact for support in the future. Additionally, it's important to provide the TTY number for the benefit of those with hearing impairments. Finally, make sure to provide an application confirmation number for the caller's records, so they have a way to reference their enrollment in the future. 

Accessing MARx 

Before accessing MARX, the agent must obtain and document the beneficiary's permission. The agent should explain that they may collect information related to the beneficiary's current enrollment status, dates of Medicare Part A and B entitlement, eligibility information, and incarceration, if applicable. The beneficiary must be informed about the purpose of accessing this system and be given an opportunity to decline or approve the request. Lastly, the agent must document the beneficiary's response for future reference.

Updated Medicare Advantage and Part D policies ensure the overall Medicare program remains strong and stable for the 65 million beneficiaries today and future generations to come, payments to private insurance companies are accurate, and taxpayer dollars are well spent.

The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), released the Calendar Year (CY) 2024 Medicare Advantage (MA) and Part D Rate Announcement that finalized payment policies for these programs. The final policies in the Rate Announcement improve payment accuracy and ensure taxpayer dollars are well spent. CMS will phase-in certain updates, and on average, CMS anticipates a payment increase for MA plans of 3.32% from 2023 to 2024, which is approximately a $13.8 billion increase in MA payments for next year.

Additional proposed policies to strengthen the MA managed care program that will hold health insurance companies to higher standards by:

• cracking down on abusive and confusing marketing schemes;
• addressing problematic prior authorization practices that prevent timely access to needed care;
• making it easier to access vital behavioral health care; and
• raising the bar on quality and driving toward more equitable care.

Taken together, these actions will make the overall Medicare program stronger.

Read the full article here.

PSM was a proud sponsor at this years NABIP Austin - Professional Development Day. We appreciate the local Austin agent community and time spent to engage with us.

AAHU The Austin Association of Health Underwriters is a local chapter of the National Association of Health Underwriters,(NAHU) and the Texas Association of Health Underwriters (TAHU) a volunteer member organization that represents nearly 20,000 licensed health insurance agents, brokers, consultants, and benefit professionals through more than 200 chapters across America. 

AAHU members help Central Texas consumers by guiding them through the complexities of Health, Dental, Disability, Medicare Supplements and Life insurance benefit decisions for  businesses and individuals.

Our organization is dedicated to providing professional development opportunities to our members so they can better serve their clients insurance needs. 

The Medicare market presents a significant phone sales opportunity for insurance agents. Here are some reasons why:

Large and growing market:
According to the Centers for Medicare & Medicaid Services, more than 61 million people were enrolled in Medicare in 2020, and this number is expected to grow in the coming years as the baby boomer generation reaches retirement age.

High demand for supplemental coverage:
Medicare covers many medical expenses, but there are still gaps in coverage that can leave beneficiaries with significant out-of-pocket costs. As a result, there is a high demand for supplemental insurance coverage, such as Medicare Advantage plans, Medigap policies, and prescription drug plans.

Convenience for beneficiaries:
Many beneficiaries prefer the convenience of purchasing insurance over the phone, as it allows them to compare plans and enroll from the comfort of their own homes.

Opportunity for cross-selling:
Selling Medicare insurance over the phone can also provide an opportunity to cross-sell other insurance products, such as life insurance, long-term care insurance, and annuities.

Compliance:
The Centers for Medicare & Medicaid Services has strict rules and regulations governing the marketing and sale of Medicare insurance products, including specific requirements for phone sales. However, with proper training and compliance procedures in place, agents can successfully navigate these regulations and grow their business.

PSM has teamed up with YourMedicare ℠ to bring you a revolutionary new Medicare enrollment platform to write more Medicare business. With our all-inclusive platform, you can sell Medicare Advantage and Part D plans on your terms.

Quote and enroll your clients online with our free platforms - View details

In summary, the Medicare market presents a significant phone sales opportunity for insurance agents, with a large and growing market, high demand for supplemental coverage, convenience for beneficiaries, opportunity for cross-selling, and compliance regulations in place to ensure ethical and responsible sales practices.

Source: https://chat.openai.com/ 

Here are ten traits of a successful insurance agent:

1. Strong communication skills: Successful insurance agents must be able to communicate effectively with clients. They must be able to explain complex insurance products and services in a way that is easy for clients to understand.

2. Persistence: Insurance sales can be challenging, and successful agents must have the persistence to overcome rejection and keep pushing forward.

3. Customer-focused: Successful agents are customer-focused and understand the importance of building strong relationships with clients. They listen to their clients' needs and provide solutions that meet those needs.

4. Strong work ethic: Insurance agents must be self-motivated and have a strong work ethic. They must be willing to put in the time and effort required to build a successful business.

5. Adaptability: The insurance industry is constantly evolving, and successful agents must be able to adapt to changes in the market and the industry. They must be willing to learn new skills and embrace new technologies.

6. Attention to detail: Insurance products and services can be complex, and successful agents must pay attention to detail to ensure that clients receive the right coverage for their needs.

7. Ability to build relationships: Successful insurance agents must be able to build relationships with clients. They must be able to establish trust and credibility with clients and work collaboratively with others.

8. Analytical skills: Insurance agents must have strong analytical skills to understand complex policies and coverage options. They must be able to evaluate clients' needs and recommend the right products and services.

9. Professionalism: Successful agents must maintain a professional demeanor at all times. They must be reliable, ethical, and trustworthy.

10. Resilience: The insurance industry can be challenging, and successful agents must have the resilience to overcome setbacks and keep pushing forward. They must be able to handle rejection and stay motivated to achieve their goals.

In summary, successful insurance agents possess a range of skills and qualities that enable them to build strong relationships with clients, adapt to changes in the industry, and provide valuable solutions to meet clients' needs.

Source: https://chat.openai.com/ 

How to Scale Your Medicare Business

What does every agent have in common? They all want to write more business.

Anyone who has been in the industry for any amount of time can tell you that increasing your production isn’t something that just happens. You have to plan and work to make it happen.

There are numerous paths you can take to grow your business, and what’s right for you depends on your personal preferences and goals.

Today I don’t want to talk to you about how to grow your business, I want to talk to you about some key principles you will need to consider when coming up with your business plan.

I’m going to share with you what factors the largest call centers and agencies in the country focus on to make sure they are running a successful business.

To start with we need to quickly go over the three most important factors in an agencies business. Cash flow, CPA, and LTV.

• The first one should be fairly obvious. Cash flow is the net amount of cash transferring in and out of a business.
• The second, CPA stands for cost per acquisition. This refers to the average amount it cost for you to get a policy issued.
  • CPA is broken down into two sections. Media CPA and fix cost CPA.
    1. Media CPA is the average amount you spend on leads or marketing to acquire a sale.
    2. Fixed cost CPA refers to everything else.
  • For an individual agent the fixed cost part is simple but if you plan on hiring additional agents it is more complicated. There will be additional factors to consider.
    1. How much did you have to pay that agent for the sale?
    2. Are you paying admin to follow up on policies or to handle phones?
    3. Office space, computers, dialer‘s, licensing fees, etc.

It’s imperative that you're be able to calculate your total CPA because you need to make sure it is lower than the third key factor, lifetime value or LTV.

• LTV is simply the average amount of commissions you earn over the life of a policy.
  • This will vary from agency to agency based on many factors. If you know your LTV and your CPA you know how much total profit you are going to make for every client you put on the books.
  • An important thing to keep in mind is we are talking about “LIFETIME” value. Major companies don’t judge the profitability of their business on just what they make the first year and neither should you.
  • As long as your LTV is higher than your CPA you are making profit.
    1. If it cost you $300 to acquire a policy and the first year the commission is only $200,it may at first glance look like a bad investment.
    2. But if the LTV on that policy is $1000 over the course of five years then you came out way ahead. You paid $300 to profit $700, it just took you five years to realize those profits.

Too often I talk to agents who are hesitant to invest in their business because they are only looking at first year profit margin. You are running a business and just like any other business you are going to have to invest in it to see it grow.

Download the guide in PDF here.

Now that we know how to calculate how much business it will take to reach your goals we need to talk about your budget. Your budget is how much you have to spend on your business.

• This could be renewal commissions, savings or even a bank loan but without a budget of some kind you won’t be able to scale your business.
• Maybe you’re an established agent who is looking to increase your sales by a few policies a month and your budget is $200 per week.
• Maybe you’re looking to build out a 15 person call-center and your budget is 1.5 million per year. Whatever it is, you need to have it defined and make sure it is available to be used as needed for leads and marketing.

Once you’ve got your budget squared away it’s time to consider the management side of starting an agency. The hardest part of running an agency is managing agents and managing leads.

• Even if you’re looking to just grow your personal business this still applies. You need to make sure you have enough leads coming in that your agents can hit their sales goals and remain happy.
• You also need to make sure that you always have enough agents available to work the leads you are purchasing.
• For example, let’s say you decide to run a five man call-center and purchase each of your agents 20 leads per day.
  • You now have 100 leads coming in per day. What happens when two of them call in sick?
  • Are you keeping their work days so full that they can’t absorb the extra 40 leads you purchased?
  • For you individual agents, do you have a plan to pause your lead generation for times when you are out of the office?
  • It’s important to plan and find a balance that keeps the agents busy with leads but doesn’t over expose your business.

You also want to have procedures in place to make sure that you are getting the most out of your leads.

When I say this most peoples minds immediately go to selling techniques and how to close more sales.

Often it’s more effective to focus on solidifying the sales you are already making to reduce attrition.

If you can reduce the percentage of clients who leave you yearly from 15% down to 5% then you will most likely see more profit from that than you would by increasing your closing percentage.

Here at PSM we focus on Medicare advantage so I’m going to use that as an example but this will apply to any product line.

• First, align your agents with how the agency is paid. You can bonus your agents after the rapid disenrollment period is up and charge them back if a client disenrolls during that period.
  • The idea is that the agent gets paid when the company does and charged back when the company does. This pushes the agent to not only write cleaner business but also to engage in post sale activities ensuring the business stays in force.
• Second, you want to have sales presentation monitoring procedures to make sure your agents are following proper procedures. Make sure they are looking up doctors and drugs on every presentation. Make sure they are assigning a PCP on every call. Make sure all compliance requirements are being met. And make sure they are doing an Health Risk Assessment on every call.
• Third, you  want to have a plan for post sale activities. Follow up with your clients when the policy is issued and then at regular intervals. 30, 60, 90 days and then again every six months or so. Make sure they know how to use their plan and if they are happy with it.

By doing all of this you will drastically increase your placement and persistency rates. Placement and persistency are vital to your success. You spent the money to acquire these clients so you need to make sure you keep them.

So far we’ve covered the key factors you need to consider when planning to scale your business. How to maximize commissions, managing your leads to workforce ratio and how to calculate the profitability of your business using LTV and CPA.

The last thing I want to leave you with is how to calculate the value of your business using a ratio. This simple method will give you a snapshot of the overall health of your business model.

• Take your LTV and divide it by your customer acquisition cost, or CAC. CAC is similar to CPA but measures placed policies rather than submitted policies.
• For Medicare advantage this will be any policy that clears the rapid disenrollment period. For many of you this will be the same as your CPA but for telesales models you’re CAC will be higher than your CPA.
• If your LTV to CAC ratio is 1.0 or lower that’s bad. You are only breaking even because the LTV is the same as what you are paying to acquire that policy. Aim for 3.0 or higher. This means you are profiting twice as much as you invested.
  

If I told you I’d give you $300 tomorrow for every hundred dollars you give me today you would take that deal, right? Of course you would.

That’s all I have for you today. I hope that you are able to take some of this information and apply it to your own personal situation. And more importantly I hope you do take the chance, invest in your business and realize your goals.

If you have any questions or want to talk about how to best scale your business please give us a call at 800-998-7715 and ask to speak with one of our marketing directors. We’ll be happy to take the time to go over any of this in more detail and can even run a personalized calculation for you on what kind of ROI you can expect.

Thanks for your time and have a great day.

Download the guide in PDF here.