Individual or Medicare – why not both?

If you're an insurance agent who specializes in either individual or Medicare products, you face some unique challenges:

• Navigating plan options from multiple carriers
• Jumping through hoops to get certified to sell either Marketplace or Medicare Advantage plans
• Finding clients who need your services

Given how difficult it can be to become proficient in just one market segment, expanding into another may seem a bit too ambitious. But hear us out.

While at first glance individual and Medicare might seem worlds apart, they’re not as different as you might imagine, and many of the skills necessary for success in one segment are easily transferrable to the other. There are actually some great synergies that can make selling both well worth your while.

Understanding Your Audience

First things first: you need to understand the distinct needs and concerns of each market segment, because there’s little to no overlap between your potential customers.

Individual health insurance clients are usually under age 65 without access to affordable employer-sponsored coverage, while Medicare clients are primarily seniors or people on Social Security Disability. Each has its own unique healthcare needs and financial concerns, and therefore, its own unique need for guidance.

That said, the skills needed to get to know your clients are pretty similar. Regardless of who you’re selling to, you need to perform a fact-finding interview to recommend appropriate plans, and it’s always helpful to listen more than you talk, at least at this stage of the process.

Tailored Communication

The two market segments also differ in the way they like to receive information, so adapting your communication style to fit your audience is crucial.

• Younger clients shopping for individual plans may prefer digital communication and appreciate quick, clear explanations accessible on mobile devices.
• Medicare beneficiaries, on the other hand, might value more personal interactions, such as phone calls or face-to-face meetings, with detailed discussions to guide them through their options.

This is not a hard-and-fast rule, though. Many of today’s seniors also prefer electronic communication like email and text, and younger clients who are just learning about insurance might require more hand holding, so it’s best not to assume. Instead, ask what works best for them.

Education is Key

One thing’s for sure: both markets require you to play an educational role, but the content and delivery will vary because the solutions for each segment are different.

• For individual health insurance clients, focus on educating them about the importance of having health coverage, how to evaluate plans based on their health needs and budget, and their potential eligibility for premium tax credits and cost-sharing subsidies.
• Most Medicare clients already understand the importance of health insurance, so you’ll spend your time explaining the differences between Original Medicare, Medicare Advantage, Medicare Supplements (Medigap plans), and Part D prescription drug plans, as well as enrollment periods and eligibility criteria.

As agents, we should never assume that our clients are well-versed in health insurance. Many struggle with even the basics, so we need to communicate in simple terms without talking down to them. Education is important because clients who understand their options can make better buying decisions and are more likely to refer others to you.

Leveraging Technology

Technology can be a powerful tool for managing your book of business and selling policies more efficiently, regardless of your target market.

• CRM Systems: CRM (Customer Relationship Management) systems can help you track client interactions, preferences, and key dates (like birthdays and enrollment periods). When used correctly, a CRM can provide just-in-time information to brokers and allow for more personalized conversations with clients.
• Online Quoting Tools: Tools like Quotit can streamline the sales process by providing instant quotes and plan comparisons. This not only saves time but also enhances the client experience by offering immediate access to rates and benefits.
• Virtual Meeting Platforms: Platforms like Zoom or Microsoft Teams can make it easier to connect with clients, regardless of location. Virtual meetings offer a convenient way to discuss options, answer questions, and provide personalized support to clients of all ages.

Cross-Marketing Opportunities

One of the real advantages of selling both individual and Medicare products is the potential for cross-marketing within your client base.

• Referral Potential: Individuals purchasing health insurance may have aging parents in need of Medicare guidance, or Medicare clients might refer you to family members or friends who need individual coverage. Encourage referrals by providing exceptional service and educating clients about the full scope of your offerings.
• Life-Long Client Relationships: As individual clients age into Medicare, you can continue to assist them. When an agent sells only individual or Medicare products, there’s a definitive start or end date to the client relationship. Isn’t it better to provide life-long coverage to your clients?

By leveraging these opportunities, you can build a stronger and more sustainable business while better serving your clients' evolving insurance needs.

Staying Informed and Compliant

Given the certification and compliance requirements for selling both individual and Medicare products, staying up to date is critical. This includes understanding the latest legislative initiatives, regulatory changes, and best practices for selling each type of product.

Regularly attending industry training, continuing education webinars, and conferences can keep you up to speed, and AHCP can help as well. Be sure to visit the Support and Medicare pages of our website for more information.

You’ll also want to complete your annual certifications in plenty of time so you’re not scrambling at the last minute before the Medicare annual election period (Oct. 15 – Dec. 7) or the Individual open enrollment period (Nov. 1 – Jan. 15).

Recap and Closing Thoughts

Successfully selling both individual and Medicare products requires an understanding of the nuances of each market and finding ways to integrate them effectively. By tailoring your communication based on your clients’ preferences, prioritizing client education, leveraging technology, taking advantage of cross-marketing opportunities, and staying informed, you can serve a diverse client base more efficiently.

The key is to view these two markets not as separate segments but as related opportunities. By providing exceptional service across both groups, you can assist more clients and build a more successful agency.