Challenges Loom for Agents During Medicare’s Annual Enrollment Period Amid Major Plan Withdrawals
Medicare’s Annual Enrollment Period (AEP) is always a busy time for Medicare agents. “This year will likely be worse,” predicts Jesse Slome, director of the American Association for Medicare Supplement Insurance.
“Several things are all happening at once that will impact seniors,” Slome shares. “A number of major Medicare Advantage plan providers have already announced plans to cease offering coverage. Humana, for example, said this could impact 500,000 plan participants.”
Several other major insurers, for example Aetna, have also announced plans to stop offering MA coverage in key markets. “You could have millions of seniors scrambling to find better plan options,” Slome explains. “The mass marketers already know this and they will blitz the nation with television ads.”
At the same time, two other important changes are simultaneously taking place. “Medicare prescription drug plans are very likely to change,” Slome believes. “Many seniors won’t focus on this until 2025 when they find their premiums have jumped or their drugs have been moved to different tiers. The average cost for not comparing will be somewhere between $500 and $700.”
Slome is strongly urging agents who focus on Medicare products to begin now to undertake a 4-prong strategy. The organization recently posted information on 2025 Medicare plan changes that will impact seniors.
First, let your clients, prospects and others know that there will be significant changes to Medicare plans in 2025. State the positive that AEP permits seniors the opportunity to compare and switch.
Second, explain that the changes are often buried within the weighty packages they’ll receive. For example, many experts predict drug plan provisions and costs will change. So will benefit levels for many of the free added benefits included with MA plans — especially dental coverage.
Third, share that AEP lasts a mere 53 days. That during AEP over 60 million seniors are all shopping for better Medicare options. Waiting to make an appointment is a mistake because the calendars of Medicare professionals fill fast during AEP.
Finally, focus on a key fact that separates you from the call centers and other mass marketers. Explain that Medicare is NATIONAL. But, Medicare plan options are LOCAL. Make yourself the local Medicare professional available to help.
Start now with your AEP preparation and communication. “You’ll build a pipeline of appointments,” Slome concludes. “And that will lead to more referrals and ancillary opportunities after the craziness of AEP 2024 ends.”
Jesse Slome is director of the American Association for Medicare Supplement Insurance. The organization makes available the leading online directory enabling seniors to find local Medicare insurance agents in their area.