1. MEDICARE – THE NEW NORMAL
2012 and Beyond

2. U.S. Medicare Chief
Donald Berwick
October 5, 2010*
“Those who wish to preserve
status quo are not going to be
contributors to our nation’s
future. They can’t be effective
partners.
All of us will have to change the
way we do business.”
*http://www.healthreformgps.org/wpcontent/uploads/he10062010_berwick.pdf

3. MEDICARE SUPPLEMENT
2011 YEAR-IN-REVIEW
 Baby Boomers began turning 65 (10,000 daily).
 SMS records 79 rate increases from various carriers in various states.
 Commissions decrease on replacement and guaranteed issue business.
 On-line and telephone-sales for Medicare Supplement increase.
 Re-insurance pacts for smaller carriers dry up.
 Larger carriers increase market share.
 Larger carriers continue to develop strategic partnerships for Medicare
recipients (Wal-Mart/Humana, Aetna/CVS).
 A+ carriers enter market place (Aetna and CSI – A Berkshire Hathaway
Company).
 Large companies restricting, or canceling, retiree health benefits.
 Fewer carriers offer new Medicare Advantage plans during AEP.

4. UNITED STATES MEDIGAP ENROLLMENT & MARKET
SHARE BY LEADING CARRIER – MAY 2011
http://www.uhcmedsupstats.com/state.php Medigap Enrollment Medigap Market Share
UNITEDHEALTHCARE INS CO* 2,935,358 30.46%
MUTUAL OF OMAHA GRP 1,035,090 10.74%
WELLPOINT INC GRP 583,483 6.05%
HCSC GRP 477,125 4.95%
CONSECO GRP 348,684 3.62%
BCBS OF MI GRP 219,999 2.28%
HIGHMARK GRP 195,916 2.03%
WELLMARK INC GRP 176,009 1.83%
BCBS OF MA GRP 172,913 1.79%
BCBS OF FL GRP 160,960 1.67%
GENWORTH FIN GRP 139,920 1.45%
BCBS OF NC GRP 126,708 1.31%
BCBS OF MN GRP 126,231 1.31%
LIBERTY NATL GRP 124,310 1.29%
BCBS OF AL GRP 123,468 1.28%
AMERICAN FINANCIAL GRP 122,496 1.27%
BCBS OF KS GRP 117,745 1.22%
STATE FARM GRP 113,358 1.18%
ARKANSAS BCBS GRP 103,058 1.07%
BCBS OF NJ GRP 93,868 0.97%
All Other Medigap Carriers 2,140,025 22.21%
Total 9,636,724 100.00%

5. MEDICARE SUPPLEMENT 2012
THE NEW NORMAL
 Medicare will be a highlighted topic due to the 2012 election cycle
creating consumer confusion.
 More companies discontinuing retiree health benefits.
 Larger A+ carriers either eyeing or planning Medicare Supplement
market entry.
 Fewer, IF ANY, smaller carriers planning Medicare Supplement market
entry due to inability to capitalize reserves without re-insurance.
 Increase of on-line and telephone-sales of Medicare Supplement
policies as carriers increase technological platforms (DIRECT TO
CONSUMER).
 Continuation of employers dropping retiree health programs while
10,000 Baby Boomers turn 65 daily.
 Further restrictions for advertising and solicitation for Medicare
Supplement (re: Ohio/NAIC guidelines)

6. 2012 MEDICARE SUPPLEMENT
MARKETING PLAN
Our job at Senior Marketing Specialists is to help YOU, the
agent, provide your clients with the Medicare Supplement that
best suits their needs. Whether it’s the lowest price, rate
stability, company ratings or brand recognition, we have the
products you and your clients need!

7. WHAT MEDICARE SAYS
• Each insurance company sets its
own premiums. It is important to
ask how an insurance company
prices Medigap policies. How
they set the price affects how
much you pay now and in the
future.*
• Cost is usually the only
difference between Medicare
Supplement policies with the
same letter sold by different
insurance companies.**
*http://www.medicare.gov/find-a-plan/staticpages/learn/how-insurance-companies-price-policies.aspx
**www.medicare.gov/publications/pubs/pdf/02110.pdf

8. WHAT MEDICARE SAYS
 Your Medicare health or prescription
drug plan can change how much it
costs and what it covers each year.
Even if your plan’s cost and
coverage stay the same, your health
or finances may have changed.
Review your plan each year to make
sure it will still meet your needs. If
you’re satisfied with your current
coverage, you don’t need to change
plans.*
*www.medicare.gov/publications/pubs/pdf/10050

9. MEDICARE + MEDICARE
SUPPLEMENT CONSUMER COST
Example: Age 65 Plan F female
Medicare Part A FREE
Medicare Part B $ 99.00
Medicare Supplement F* $130.00
Total premium $229.00
Plan F contains comprehensive
coverage for everything Medicare
Insurance doesn’t cover as long as
the charge is approved by Medicare
(other plans may be available with
lower premiums).

10. MEDICARE SUPPLEMENT
1,000 PROSPECTS/LEADS
Results:
 Contacts 75% or 750
 Appointments 60% or 450
 Presentations 80% or 360
 Sales 60% or 216
Out of 750 “workable leads”, 534 did not
buy. WHY???
267 did not qualify due to health, group,
finances, MA, Medicaid etc…
267 were not interested or
satisfied with their current
plan.

11. MEDICARE SUPPLEMENT
1,000 PROSPECTS/LEADS
Out of 750 “workable leads”
267 prospects/leads were not
interested or satisfied with their
Rate current plan.
Stability
THIS MARKET IS NO
Claims
LONGER “ONE SIZE FITS
Payment
ALL” BASED SOLELY ON
PRICE!
Company Brand
Ratings Name

12. INTRODUCES: THE MEDICARE SUITE

13. THE MEDICARE SUITE
At SMS, for a company to be
included in “The Medicare Suite”,
they must meet at least three out of
four criteria.
Company
Ratings
Using our Quote Engine, two to four
of these companies are consistently
shown in the top ten carriers, with
Brand their premiums being within only a
Name few dollars a month difference!!!*
LOOK FOR NEW COMPANIES
Claims Rate
IN 2012!
Payment Stability

14. SMS QUOTE ENGINE
Our quote engine is constantly being updated to allow you access to the carriers you
need to help you and your client make the best decisions.

15. Working with SMS
 Top Commissions
 Discounted Mail Lead Systems
 Company Approved Advertising
 Turning 65 Lists
 NEW Medicare Presentation
 Quote Engine
 Expert Medicare Marketers
 Incentives

16. WE APPRECIATE YOUR BUSINESS!
Please email any questions to us at
amanda@smsteam.net
Senior Marketing Specialists
1-800-689-2800 | www.smsteam.net