How to get started in Medicare sales

As with any insurance product you must have the proper license per your state’s Department of Insurance requirements. In most cases you only need a health insurance license, although in North Carolina for example, there is a specific license to sell Medicare products.

It’s best to check with your state Department of Insurance for licensing requirements specific to your state to make sure.

You can visit the National Insurance Producer Registry at www.nipr.com for help with proper licensing requirements as well as electronic filing of needed documents.

Outside of any training needed to complete state licensing requirements, you will also be required to complete training and certifications to offer certain Medicare product options, namely Medicare Advantage Plans and Prescription Drug Plans. 

Proper certification for these product options will generally include AHIP training, as well as carrier specific training with each individual company and product you plan to sell.  Medicare supplement products however, do not require any additional certifications beyond your state’s licensing requirements. 

You can complete AHIP training directly through AHIP or through a Medicare Advantage or Part D carrier. At PSM we offer our agents a discount for AHIP training. Do some research to find out what discounts might be available before purchasing your training.

While the training modules you’ll work through to complete Medicare Advantage and PDP certifications will be provided by the carriers, CMS publishes two annual resources that make valuable self-study resources: Medicare and You, and the Choosing a Medigap Policy Guide.

Additionally, CMS has an excellent online training library that you can use to dive deeper into specific topics of Medicare and even have fun with mock tests.

[ Recommended: What is AHIP Certification and How do I Get it?]

Do you plan to visit your customers face-to-face?  Or do you prefer the ease of conducting your business electronically and over the phone? 

Both are viable options, especially now that the vast majority of competitive and reputable insurance companies have adopted an e-application process for agent use. We recommend you use a relationship selling method when marketing to seniors. It is critical to learn about the demographic you're selling to and offer the best service and product that honestly addresses their needs.

Seniors have seen advertising and sales tactics evolve over many years and are quick to see through them. A sales technique not based on an honest desire to help will raise immediate flags in their minds.

For each product you plan to sell you’ll need to acquire an appointment with that insurance carrier by completing an independent agent agreement or contract. 

There are a very limited number of insurance companies that will offer you a direct contract without being a captive or employed agent, so most of your independent agent contracts for various insurance companies will be acquired through a Medicare Insurance FMO.

There are many benefits to working with an FMO. A good FMO will work consistently to get the best contracts with top companies, and offer them to agents and agencies of all sizes. They should be a pillar of support, helping you maximize your efforts, and allow you to focus on supercharging your business.

It's important to do your research and ask the right questions when looking for an FMO. We recommend you review several companies to ensure you get the partner that can help you succeed and exceed your goals.

Leads are normally created from receiving input from people actively expressing interest in getting information about Medicare product options and costs. Companies that specialize in lead generation have put forth a lot of effort to collect the contact information they offer for sale.

Some Lead Services will have better coverage (and volume) for certain lines of insurance and geographic territories. However, not being able to meet all your needs isn’t necessarily a deal breaker. More important is to consider consistency and dependability.

The “secret to success” when working with insurance leads starts with the understanding that it's a numbers game. If the leads you purchase are quality leads and your sales process is well polished, then it stands to reason that purchasing insurance leads can be a profitable venture.

We recommend testing a lead service first to determine what kind of closing ratio you can achieve then factoring the price to see if they meet your return on investment expectations.

And as with any business involving sales, referrals should never be overlooked. Referrals can play a big part in your success, and closing ratios are generally much higher than with colder leads.  If you’re not asking every customer for a referral you’re absolutely leaving money on the table.

PSM had partnered with LeadStar Marketplace as our preferred lead vendor. 

Recommended: 14 Ways to Generate Medicare Leads 

There a number of tools available to help an agent be successful in today's competitive landscape. Some of these options will include:

eContracting Solutions - This tool would allow you to complete contracts online, speeding up the appointment process.

Medicare Quoting and Enrollment Tool - A Quoting and Enrollment platform makes it easier for agents to have access to accurate, up-to-date pricing and plan details for the nations top senior market products. A solid quoting platform will allow you to quickly review the entire landscape of product options giving you an expert level of knowledge on the fly.

Book of Business Search Features - The Book of Business (BOB) feature allows agents to query, search and download their entire client base at any time.

Check out our online platform for Medicare Advantage and Part D sales. 

As you can see, these tools are making it easier to work through the contracting process with clients without the need for face to face meetings. These tools, among others, should be considered a standard part of your sales toolbox to help accelerate your sales process.

Technology can help speed up the process, but at the same time presents a new set of sales challenges since you don't always meet face to face with your customer. Applying these tools and learning how to effectively reach your prospects with social media can be a huge boon to your business.