Are group benefit brokers missing out by not offering Medicare? | Insurance business America
There are numerous ways to become an expert advisor
Life & Health
By Gia Snape and Mark Schoeff Jr.
In a competitive health insurance and group benefits market, brokers must look for innovative strategies to improve their service offerings. One avenue that brokers don’t often consider is Medicare.
An agency executive said the federal health insurance program, which primarily targets people ages 65 and older, offers group benefits brokers an opportunity to expand their market reach and offer comprehensive solutions to a broader demographic.
“If you don’t consider Medicare, you lose customers who are aging and turning to Medicare,” said Elizabeth Gavino (pictured), president and owner of Lewin and Gavino Inc., an independent insurance agency based in New Jersey.
As the workforce ages, integrating Medicare into group insurance offerings is an increasingly attractive opportunity for brokers.
Medicare – a “misunderstood” program?
Gavino, who has nearly 20 years of experience in employee and group benefits and health insurance, has successfully integrated Medicare into her company.
She began looking into Medicare after her father, then retired as a tax attorney in New York City, sought her advice about the program.
“My dad told me, ‘I know I’m not stupid, but I left Social Security more confused than when I entered,'” she said.
Gavino acknowledged that Medicare is often misunderstood.
“The biggest misconception is that Medicare is free,” she said. This misunderstanding can lead to shock and frustration when new enrollees learn about Part B premiums and additional income-based supplements.
“Every time I talk to a business owner who turns 65, they say, ‘I paid all those taxes.’ Why am I paying $500 a month for Part B?’” Gavino said.
She said some brokers shy away from Medicare because of certification requirements and regulatory complexities. Convincing employees age 65 to switch to Medicare also requires rigorous cost comparisons and network considerations.
Although navigating Medicare can be daunting, brokers who position themselves as experts can provide employers with valuable compliance support, Gavino says. Despite the hurdles, she finds the Medicare specialty rewarding both financially and personally.
“It’s been half of my business for 20 years. Customers often thank me for making Medicare painless and easy because it is a complicated issue,” she said.
Medicare offers opportunities for group insurance brokers
Medicare is a robust and evolving program with significant benefits for individuals and employers.
Brokers need to understand the components of Medicare – Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage), and Part D (prescription drug coverage) – to make informed decisions. Each part offers unique benefits, and the ability to navigate them can make brokers stand out as knowledgeable advisors.
A major benefit of offering Medicare is that it provides employers, particularly small and medium-sized businesses, with a cost-effective solution to manage healthcare costs while providing benefits to their employees.
Individuals switching from group health plans to Medicare Advantage or Supplement plans may also benefit from broker advice to ensure continued and comprehensive coverage.
“It could be more cost-effective for the company if employees choose Medicare over their employer’s health plan,” Gavino said. “Medicare is complex, but educating customers makes it manageable.”
For Gavino, education is a crucial part of taking advantage of Medicare. Her commitment to education extends not only to her clients, but also to financial planners and other insurance brokers.
Before moving to California at the start of the pandemic, she conducted regular training for financial planners through the Financial Planning Association of New York City.
“I have done a lot of training to teach financial planners about Medicare so they can better serve their clients,” Gavino said.
“During benefits meetings, I explain copays, deductibles and plan decisions to help them understand the financial impact of their decisions.”
What are your thoughts on Medicare as part of group insurance offerings? Please share your comments below.
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2024-06-19 15:00:03
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