Persistency of MAPD and Med Supp

[sshafran]

I’m interested to see what other agents are experiencing as far as maintaining their book of business year after year. There have been some on the forums claiming that their Final Expense business is stickier than Medicare in general. I have experienced the exact opposite and can’t imagine most haven’t.

Please also specify if you’re a telesales or F2F agent because that would certainly play into it.

It is rare to lose a med supp client. I believe that FE runs in the 80’s in persistency. Med Supp / MAPD is in the high 90’s (excluding death).

The one guy in the fe forum saying that fe is stickier is incorrect. I saw a post about plan cancellations, etc. But plan changes are not factored in. Sure, if you count plan changes, maybe they are closer, but when you are the agent facilitating the plan change, you don’t lose any commission almost 100% of the time.

In fact, if you have a med supp client and after 5 years you move them to a new, cheaper carrier, you have a very, very good chance increasing comp.

The key is this: you need to be the one to help them switch from carrier a to carrier b. Don’t let another agent do it...

 

[vic120]

Medigap purchasers are clients, Folks on MA they are just a "customer" like with ACA plans.

I am not sure I understand this statement. I do write more medsupp than MA, However, my MA clients are just as much clients as my Medsupp clients and sometimes more so. My persistence is near 90% on both.

 

[WCMason]

I am not sure I understand this statement. I do write more medsupp than MA, However, my MA clients are just as much clients as my Medsupp clients and sometimes more so. My persistence is near 90% on both.

Agreed. Same experience here. No difference at all in persistency or ease of working with clients whether MA or med supp.

 

[vic120]

Agreed. Same experience here. No difference at all in persistency or ease of working with clients whether MA or med supp.

A little more customer service but not by a lot though, All in All Just same as far as being part of the family as far as I am concerned

 

[sman]

What % of your MA clients have Extra-Help, SPAP or are Dual-Eligible would you say?

Not many as that isn't my market. I'd say maybe 5% at most. But those clients have remained with me. Again, it's about the relationship and the value you add. I don't treat my clients as a transaction.

 

[DS4]

F2F only here. 99% In my office. Med supps only. Probably 95% for persistency. Because I wrote my first Med Supp in the late 70’s, death seems to be my number one reason for cx, followed by, “moved out of state”.

 

[YouGotMyMoney]

Not many as that isn't my market. I'd say maybe 5% at most. But those clients have remained with me. Again, it's about the relationship and the value you add. I don't treat my clients as a transaction.

I understand it's difficult to comprehend subtle distinctions on a message board, but I didn't say I treat MA clients as transactions.

However, you (all) must and do acknowledge there is a difference between an Independent Agent and a Call Center. By it's very nature clients are transactionary in a high volume sales environment. That's not to say that the client is not valued, but it's different. When you see 400+ MA enrollments come through your office a week, your perspective is different.

I asked about LIS/SPAP/DUAL because in order to do high volume year-round you must target people that have SEP's. And that's the opposite of the clientele that you have, and I understand that - prior to my current gig - when I was selling Medicare over the phone myself - I was working predominantly with people that were aging into Medicare from our health insurance book of business. So certainly all those Medicare Advantage clients were higher income because they were self-employed and the persistency rate is right in line with what you're stating yourself. So were not in disagreement we just have different perspectives.

 

[Todd King]

I understand it's difficult to comprehend subtle distinctions on a message board, but I didn't say I treat MA clients as transactions.

However, you (all) must and do acknowledge there is a difference between an Independent Agent and a Call Center. By it's very nature clients are transactionary in a high volume sales environment. That's not to say that the client is not valued, but it's different. When you see 400+ MA enrollments come through your office a week, your perspective is different.

I asked about LIS/SPAP/DUAL because in order to do high volume year-round you must target people that have SEP's. And that's the opposite of the clientele that you have, and I understand that - prior to my current gig - when I was selling Medicare over the phone myself - I was working predominantly with people that were aging into Medicare from our health insurance book of business. So certainly all those Medicare Advantage clients were higher income because they were self-employed and the persistency rate is right in line with what you're stating yourself. So were not in disagreement we just have different perspectives.

You might as well have said that. Your exact words: "Medigap purchasers are clients, Folks on MA they are just a "customer" like with ACA plans."

 

[LostDollar]

If your gonna focus on MA, and not AEP + T-65's only and plan on selling year round - you are going to have issues with persistency. Indy agents should only sell Medigap, leave the MA to the call centers. From other posts he has made, GreenSky has a book of MA customers he is happy with - but you should consider that the exception to the rule. Medigap purchasers are clients, Folks on MA they are just a "customer" like with ACA plans.

I understand it's difficult to comprehend subtle distinctions on a message board, but I didn't say I treat MA clients as transactions.

However, you (all) must and do acknowledge there is a difference between an Independent Agent and a Call Center. By it's very nature clients are transactionary in a high volume sales environment. That's not to say that the client is not valued, but it's different. When you see 400+ MA enrollments come through your office a week, your perspective is different.

I asked about LIS/SPAP/DUAL because in order to do high volume year-round you must target people that have SEP's. And that's the opposite of the clientele that you have, and I understand that - prior to my current gig - when I was selling Medicare over the phone myself - I was working predominantly with people that were aging into Medicare from our health insurance book of business. So certainly all those Medicare Advantage clients were higher income because they were self-employed and the persistency rate is right in line with what you're stating yourself. So were not in disagreement we just have different perspectives.

It is one thing to say that different business practices or different business models may give independent insurance agents different perspectives on their business and their clients.

It is an entirely different, and inappropriate, thing to say that your (YouGotMyMoney's) opinion of correct independent insurance agent business practice is one which should be followed by every independent insurance agent in the US.

 

[goillini52]

I'll just stick this here.
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