Why Should Agents Consider Selling Medigap Plans

Insurance agents who sell Medicare plans should consider selling Medigap plans in 2023. Medigap plans, which are also called Medicare Supplements, are a powerful tool for patients with high and low healthcare expenses to control their spending for Medicare coverage.

The Market Is Booming for Medicare Supplements

Every day thousands of baby boomers turn 65 and become eligible for Medicare. Medicare beneficiaries need supplemental insurance. Original Medicare has gaps in coverage and no limit to out-of-pocket spending. Medigap plans help your clients to control their costs for Medicare and can be especially helpful for patients who anticipate high healthcare expenses.

Medigap Can Save Your Clients Money

Medicare Supplement plans are not health insurance. They do not interfere with coverage or providers, but instead focus on helping beneficiaries afford the care they are receiving. Medigap plans can cover hospital costs and coinsurance, Part A and Part B copayments, hospice care, the Part A deductible, skilled nursing facility care, and more. Some plans cover these expenses at 100% once you meet the deductible while others cover 50, 75 or 80 percent for that benefit. Two plans even have an out-of-pocket limit, which helps your clients control spending.

Medigap Plans Are Standardized

There are ten available Medigap plans. Clients in the Northeast and the Pacific Northwest can purchase Medicare Supplement Plan G and receive the same coverage. That standardization also makes it easier to be confident in your understanding of the plans and ability to explain them to your clients.

Clients Have Fewer Restrictions Under Medigap

Medicare Advantage plans usually contract with a network of healthcare providers to negotiate lower prices. This often leads to beneficiaries switching primary care providers and needing referrals to see specialists. Instead of working with a whole separate network of healthcare providers, your clients can see any providers who accept Medicare when they have a Medicare Supplement plan. 

Medigap does not make changes to your coverage access through Medicare. These plans’ main focus is to reduce out-of-pocket expenses by covering costs such as copayments, coinsurance, hospice and more. Some plans also cover a percentage of foreign travel emergency care, which is an expansion from Original Medicare’s stateside coverage limits. With Medigap plans, your clients can travel within and outside the country and not have to worry about being covered.

Adding Medigap Plans to your offerings can be a lucrative business move. Learn more about selling Medicare plans effectively with Magellan Healthcare.