Medicare Savings Plans

Saving Clients Money using Medicare Savings Plans

In Presentation, Prospect Mindset, Sales Tips by Learning FE

This week I want to share a new way you can help save your prospects money, provide value to your clients and increase your commissions by helping your clients qualify for the Medicare Savings Plan.  Did you know that around 40% of folks that could qualify for Low Income Subsidies and Extra Help are not taking advantage of these programs??  These are programs designed for the poorest of the poor.  If you sell Final Expense, you are already working with that demographic as it is.

We can actually get people signed up for the Medicare Savings Plan ourselves to help save them money on their prescriptions and doctor/hospital bills.  Many agents think only those able to sell Medicare Advantage plans can help people sign up for these type of programs.  But even if you cannot or do not want to offer Medicare Advantage Plans, you can still use this tip to help  your prospects and make more sales!

The first thing we need to find out is if they are already receiving Extra Help.  This can be figured out by simply asking them how much they pay for their prescriptions.  If they say anywhere between $1-$8, then you know they have already signed up.  If they tell you they are paying $40-$100 per prescription, then they are not receiving Extra Help.

Their income is the qualifying factor.  Every state is different so you will need to google Medicare Savings Program and your state.  It will tell you how much they can make for single and married couples.  Now don’t ask your prospect how much they make, as this could offend them.  Here in Indiana, if they’re single and make less than $1377 a month then they will qualify.  So after you find out how much they’re paying for scripts and you determine they are not receiving Extra Help, then ask, “So you may qualify for some extra help, but it is based on income.  Are you making less than $1377 a month?”  If they say yes, “Ok that may be close enough to qualify, but we will look at that in a little bit.”  (A takeaway close.)

Now after you have closed your Final Expense sale say, “Now this is a good amount and I’m sure you would have liked to have gotten more to leave to your family.  Let me ask you something: if I can pull an extra $80 to $90 out of thin air for free, I’m sure you’d like to add more right?” (Tie down close)

If they just didn’t have any money at all (which is what will happen in most cases with these type of prospects) just change it up a little: “If I could somehow pull an extra $80-$90 out of thin air and it wouldn’t cost you a thing, I’m sure you would want to get coverage and protect your family, right?”

Ok, now what does getting them extra help actually do??  First off, if they’re income is low enough based off of your state’s requirements, then their $134 Medicare Part B premium is waived!  This is huge!  So if they were receiving $1000 a month in whatever, disability, SSI or SS, they will now receive $1134!

They will also receive a discount on their medications.  There are different levels, but it could be anywhere between $1.25 and $8 here in Indiana.  That can be huge for insulin users!

So how do you get them signed up?  Go to www.benefitscheckup.org You simply put in their zip code, income range and answer the rest of their other questions.  (Get on there and mess around with it.). When I plug someone in here in Indiana and put an income range of $1000-$1500, it says they possibly qualify for 68 different programs!!!

Some of these programs include the Medicare Savings Plan that waives their $134 premium and lowers their prescription prices.  But here are a list of just some of the other programs they qualify for:

EyeCare

Dental Services

Audient Hearing Care

SNAP – food stamps

Meals on Wheels

Housing Vouchers

Low Income Energy Assistance

Lifeline

Tax Credits and many many more!

When you fill out all their information on the www.benefitscheckup.org site, just make sure you check mark the box that says to apply for any state benefits.  This will make sure both federal and state benefits are being applied for.   Make sure you put your email in the form so you get any updates.

It will take around 30 days for this to go through.  Tell your client/prospect to expect a letter the Department of Social Services.  It will have a big DSS on the letter.  I would put it in your calendar and just call them in 30 days no matter what.

You can check their status in the interim by going to http://www.medicare.gov/find-a-plan/enrollment and see if their status has changed.  You can even check the status of current clients from this link.

So once they get their letter, go back out to their house and do work!  They are going to love you!  You just gave them $134/mo and discounts on all their prescription.  Use that $$ to make a big sale!

Once you are successfully selling Final Expense, adding on the ability to offer Medicare Advantage plans should be a no brainer.  Most of our prospects have these type of plans anyway and many of them qualify for Special Enrollment Periods year round, so we can change them over to another plan any time of the year, not just between October 15th and December 7th.  The best part is most of the carriers offer $0 premium plans.  That should be easy to sell!  If Humana is in your area, you can actually have the client sign an Agent of Record change form and you can become their agent right then and there.

Final Expense is great for the first year commissions, but there is hardly any back end commission.  Medicare Advantage offers a 1st year $433 commission (for brand new enrollees) and a $222 renewable commission every year after that FOR LIFE!  Just imagine if you were able to sell just 2 Medicare Advantage plans a year.  That’s over $22,000 a year in residual income for life!  After 5 years it’s over $100,000 in renewals FOR LIFE.  That is easily attainable for those taking 20-30 Final Expense leads a week.  You are already in the house, so why not offer these plans?

There are a bunch of hoops you have to jump through to stay within CMS guidelines, so make sure you get hooked up with a quality organization that knows how to navigate the Medicare Advantage labyrinth. 

Josh Jones is an expert in the Final Expense market. He and his business partner, Brandon Smotherman, who is a $400,000/year Final Expense Producer, have taken their years of successful experience in the Final Expense and Medicare markets and are now teaching agents how to replicate their proven system. So whether you are thinking about entering the Final Expense market or you are a veteran agent that desires a greater income or you just want to add some Final Expense products to cross sell, Josh and Brandon have the knowledge and resources to help you grow your business.

Visit https://learningfe.com/what-we-offer/ for more details.