Medicare Supplement Premium Amounts

[NF Insight]

What type of MedSupp premium difference is significant? Bill and Josh talk through how much less of a premium difference should make agents writing Medicare Supplement take notice. They'll also discuss how clients may respond differently to a lower rate on a new product.

 

[LostDollar]

I had a good laugh when I saw this. I admire your creativity in finding topics for your YouTube content.

 

[LostDollar]

My reading on Insurance Forums suggests to me that some agents will make a distinction between maintaining contact with clients and maintaining contacts with clients by reaching out to them with the "New Lowest Rates" each time a carrier starts a new campaign.

For example: I think your videos and other posts have indicated New Era, Lumico, and Medico have all launched something like a new very low competitive rate campaign in the last twelve months. What would a Medicare Beneficiary make of an agent who contacted them 3 times in 12 months with "New Lowest Rate" promotions from 3 different carriers. I don't know for sure but I don't think I would like it. Building on your P&C example, I got to the point where I resented my agent for my home insurance continually "pushing" me to change my home coverage from a carrier I was very pleased with. This also leads to a point about agent attitude, relevant here, which I think was missed in the video.

There are threads and individual posts on Insurance Forums about High Deductible Medigap Plans, Dental Insurance and GI Medigap insurance. A common agent comment about these types of plans is that they have low commissions. I don't know if the following is a technical FMO marketing term, but I would call this concern with "Return On Effort". There are agents who would prefer not to sell these products because the work to consumate the sale or the needed customer service after the sales is unreasonable in relation to compensation received.

The insurance forums postings suggest to me that there are a lot of agents, particularly ones who believe they have good rapport with their customers, who would consider their time better spent making sales for new business with commissions on a whole medigap policy premium rather than spending a similar amount of effort to churn their book to gain commission increases on just $5-$10 in "new" premium.