Medicare Supplement Sales: Steady, Reliable, and Full of Opportunity

When discussing Medicare supplement sales, it’s easy to see the glass as half-empty if you’re focused on percentages. Historically, Medicare supplement plans have consistently made up about 20% of the Medicare market. At first glance, that flat percentage might appear uninspiring, but a deeper dive into the numbers reveals a compelling story of growth, opportunity, and cross-selling potential.

A Consistent Market with Growing Numbers

The 20% share of Medicare supplement plans has remained remarkably steady for decades. However, what many fail to consider is the growth in the actual number of people enrolled in Medicare supplements over time. In 1999, 8 million individuals were enrolled in these plans. Fast forward to 2023, and that number has grown to 14.2 million. That’s a 77.5% increase in enrollments over 24 years.

This steady growth is a reflection of the expanding Medicare-eligible population. While Medicare Advantage plans may capture much of the industry buzz, Medicare supplements continue to attract a significant and reliable segment of the market. For agents, this means there is a consistent and growing pool of potential clients who value the comprehensive coverage and flexibility that Medicare supplements provide.

Why Clients Choose Medicare Supplements

Understanding why 20% of the Medicare population consistently chooses Medicare supplements is key to effectively positioning these plans with your clients. Medicare supplements (or Medigap plans) offer:

• Predictable Costs: Clients appreciate the ability to budget for out-of-pocket healthcare expenses.

• Flexibility: Medicare supplements allow policyholders to see any doctor or specialist who accepts Medicare, without network restrictions.

• Stability: Once enrolled, clients can keep their plans as long as they continue to pay premiums.

These features appeal particularly to seniors who prioritize freedom of choice and peace of mind when it comes to their healthcare coverage.

Cross-Selling Opportunities Abound

One often-overlooked advantage of selling Medicare supplements is the potential for cross-selling. Clients who purchase a Medicare supplement plan are statistically more likely to add additional policies, such as:

• Dental, Vision, and Hearing Plans: Many Medicare supplements don’t cover these services, making standalone policies a natural addition.

• Life Insurance: Clients seeking financial security often consider final expense or term life insurance.

• Cancer and Critical Illness Plans: These policies provide extra protection for unexpected health crises, which can be particularly attractive to seniors.

By positioning yourself as a one-stop resource for their health and financial security needs, you can deepen client relationships while boosting your revenue streams.

Educating Clients

As you engage with clients, it’s crucial to present these statistics and benefits clearly. Let them know that while the percentage of people choosing Medicare supplements has remained steady, the number of enrollments continues to grow. This stability is a testament to the enduring value these plans provide.

Partner with PSM Brokerage

At PSM Brokerage, we understand the nuances of the Medicare supplement market and are committed to supporting agents like you every step of the way. From providing the latest data and resources to offering tailored marketing strategies, we’re here to help you succeed.

As your dedicated partner, we’ll equip you with the tools to:

• Grow your Medicare supplement business.

• Identify and maximize cross-selling opportunities.

• Build long-term client relationships.

Ready to take your Medicare sales to the next level? Contact PSM Brokerage today to learn more about how we can help you thrive in the Medicare market. Together, we’ll ensure your success in serving the needs of this growing and reliable segment.

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