Is Medicare For Me?

This can be a real consideration. There is a ton of money in the Medicare space, but how you enter the market can depend on what your situation and goals are.

Full-time or Part-time

Working full-time depends on the goals and current position of your business.

Medicare is incredibly lucrative, but it takes time to build up your business. Based on 2022 renewal figures it only takes 350 Medicare Advantage cases on the books to have a six figure renewal book. This is often the hardest $100,000 you'll accumulate and business will move much easier after that book is built. It is completely possible to build this book. It is only an average of a couple cases per working day. Even though it is possible first year, many agents struggle to reach the goal. We have the resources to help you reach it, but know it's not the average 1st year outcome.

Medicare as a solo business can be hard to build without dedication to see it all the way through.

That said, many agents jump in for AEP (the biggest enrollment season from October 15th through December 7th) and work other lines of business throughout the year to pay the bills as they build their business.

It's worth knowing AEP Medicare Advantage business doesn't pay right away. Business written through this season doesn't get paid until January or February of the following year since clients are able to make unlimited elections through this season. You should have enough money saved up to weather the season.

What if Medicare is only part of your business?

Many Life Insurance as well as Property and Casualty agents look to utilize Medicare to supplement their existing business. This is a great opportunity considering you have an existing book of business and can cross sell your existing leads. This makes the venture into Medicare much less risky.

Don't Over Think It

We are big fans of running the numbers, but understand as you start out in Medicare there will be a learning curve. Your first few cases will take some time and consideration. You have to go into this business with the ability to think quickly on your feet as well as to grow from your experiences and move forward. If you're easily discouraged, it will be a hard road. Make sure you have the mindset as well as the time to make your business work.

We highly recommend selling before AEP to get your feet wet and get some of the learning out of the way before you get in the thick of it.

Cross-sale Profitability

For full-time Medicare agents, as I stated before first year profitability can be a struggle. A huge help in that is cross-selling your book of business other products. This can even help you sell more cases.

Products like Final Expense, Hospital Indemnity Policies, Dental, Vision, and Hearing coverage as well as others can help bolster your profits. Being able to sell these products is an absolute necessity for full-time Medicare agents and helps agents create sustainable first-year profits.

Advantage or Just Supplement

Many agents look to get into Medicare Supplement business before they take the big bite into Medicare Advantage (MA or MAPD) and Medicare Prescription Drug Coverage (PDP or Part D coverage).

Why?

There's less regulation and education required to sell Medicare Supplements.

It's completely possible to make this decision, but in the long run you'll struggle providing a full service business to your clients. Medicare Advantage business is growing quickly and you'll run across clients that have no other option. Additionally, clients will need their Prescription Drug coverage and not being able to offer it can invite an additional agent into the mix. There is more work selling these products, but the reward is well worth the investment.

Conclusion

The best way to weigh the options, is to take the considerations above and discuss it with our Brokerage team. You can reach out to us and enter into the business having fully considered the options. Reach out and we'll help you think through your options.