Starting shortly, hundreds of millions of dollars will be spent by insurers and major marketing organizations designed to generate Medicare AEP leads. AEP is the Annual Enrollment Period during which tens of millions of seniors with Medicare plans can freely switch coverage.
The 2023 Medicare Annual Enrollment Period (AEP) begins October 15. Expect record-setting spending on cable television ads, online banners and click-through ads, as well as direct mail. Independent Medicare agents simply can’t compete with the amount of money that will be spent. One can align themselves with an entity that provides leads, taking a substantial haircut in compensation on any sales made. Or, one can buy leads, an expensive proposition with many agents frustrated that leads are sold to multiple parties and then resold again.
The Battle for AEP Leads: Big Spending vs. Smart Strategy
A far smarter recommendation is to capitalize on an opportunity overlooked by those spending millions of ad dollars. Specifically, start well before the beginning of AEP and offer to help seniors compare and find their best Medicare drug plan coverage. The potential to save $200, $400 and even more than $700 a year will generate interest and responses. Starting now gives you a jump-start on filling your calendar with meaningful AEP appointments.
Overlooked Opportunities: Focusing on Part D Coverage
Approximately 23 million Americans have stand-alone Part D coverage according to the latest American Association for Medicare Supplement Insurance data. These overlooked individuals can use AEP to review and switch their drug plans starting January 1st. While the sum is fewer than the number of Americans currently with drug plan coverage included as part of their Medicare Advantage (Part C) coverage, it remains a sizable, overlooked segment of the market.
A just-conducted survey by the American Association for Medicare Supplement Insurance (AAMSI) polled agents who helped their seniors clients compare drug plans during the prior Medicare AEP. The survey of Medicare drug plan savings found that a third of seniors saved $300 or more as a result of the effort. Some 12 percent reported helping their clients save between $500 and $700.
Understanding the Power of Comparing Drug Plan Coverage
Capitalize on the fact that only a relatively small percentage of seniors compare their drug plan coverage. While the process can be relatively simple, many seniors are unaware of the opportunity Medicare provides. Most others simply don’t make the time and effort. Explain that here’s where the support of a trusted local Medicare insurance professional can be invaluable.
Preparing Clients for the Annual Notice of Plan Changes
During September, advise your clients that they should watch their mail for the annual notice of plan changes. These arrive during September. You are not expecting clients to actually review the package. Rather you are using the event to validate the fact that indeed plans will change January 1st, and that this is a key time during which changes can be made.
Stress that the ability to change is limited to just a few key weeks. Note that waiting until the waning days of AEP could be a mistake as that’s when agents are booked solid. Finally, explain how simple it can be to compare their current coverage with plans available in their area. A list of drugs taken and prescribed dosages is all that’s needed to accomplish the task of comparing and determining if any savings potential exists.
While compensation for selling Medicare Part D plans is relatively low, the potential of securing a new Medicare client makes the effort more than worthwhile. But just as seniors should wait until AEP is underway, starting early will help local Medicare agents jump-start their Fall marketing efforts.
