Advisor Today - March/April 2016 - (Page 24)
By Elie Harriett
Selling the "Best Plan"
When it comes to Medicare Supplements, the "best plan" is the expertise you offer your clients.
s we pass the decade mark on
selling Medicare Supplement
Insurance, I want to share one
of the simplest and most powerful of
all our selling strategies for Medicare
Supplements. Every now and then, we
come across a client who knows just
enough about Medicare Supplements to
insist on getting a Medicare Supplement
Plan F. Their reason for doing this?
"Because it is the best," they say.
For those unfamiliar with the
structure of Medicare supplements, an
explanation is in order. The government
mandates a benefits package and places
it under specific plan letters labeled A
A Plan F mandates that 100
percent of all Medicare Part B
approved charges get paid, as well
as the Part A & B deductible, and
certain other Medicare-approved
copays and coinsurance charges.
I can confidently say that if a person
gets a Plan F, then 100 percent of all
his Medicare-approved hospital and
medical bills will get paid. If he sees
a single bill, then something is wrong
and we need to investigate where the
The majority of our Supplement
clients go into a Plan G, however,
instead of the F. We do this because an
F and a G are identical in every respect
except for one-the Plan G leaves your
client with paying the Medicare Part
B deductible. In 2016, that amount
is $166 payable once in the year. All
other charges are paid identically
between the two plans.
The reason we ask this of our clients
is the premium. And it isn't a little
premium savings-it is a lot. If we
take the cheapest F of any company
right now, and the cheapest G of any
company, even if they are two different
companies, and we take the difference
in premium and multiply it by 12, that
number tends to be higher than the
Part B deductible.
24 ADVISOR TODAY | March/April 2016
can show, the
A case in point
For example, if the lowest premium
for an F plan is $140 a month and the
lowest G is $110, that's a $30-a-month
difference. $30 x 12 months is a
savings of $360 annually to your
clients. In exchange for taking a plan
G, your clients will have to pay the first
$166 deductible annually. They still
come out ahead by nearly $200.
Broken up over 12 months, $200
is not a lot of money for one year,
but showing the clients how they are
saving money by having a plan with
a single deductible rather than simply
taking "the best" because it covers all
copays and charges instantly disarms
the client. I have even had a few
prospects tell me they went with me
because they felt I was "on their side"
simply by showing them this little
trick. One of our clients said it best
when he told us that the additional
"convenience charge" to have the
insurance company pay the part B
deductible isn't worth it.
Be aware that not every company
offers Medicare Supplements Plan F
& G. It is always a good idea to have
multiple carriers, if you are allowed to
do so. The more companies you can
show, the greater the difference will be
between plan prices.
"The best" is a misnomer when
it comes to Medicare Supplements.
By federal law, an F is an F and a G
is a G, regardless of the company's
name at the top of the card. The only
differences are the prices between the
companies, and the service the client
gets from you, the trusted advisor.
And defining "the best" as a plan
in which the client pays absolutely
nothing for Medicare-covered health
expenses doesn't take into account the
unnecessarily high premium for that
one single deductible to get covered.
By showing the client how he can
have both excellent benefits and a
lower premium, you can show him that
"the best" is really the expertise your
clients can get by buying their coverage
Elie Harriett co-owns Classic
Insurance & Financial Services Co.,
specializing in Medicare-related
insurance. He is a trustee of NAIFAOhio. He can be reached by email
Table of Contents for the Digital Edition of Advisor Today - March/April 2016
From the Editor
A Question of Ethics The Details Often Make the Difference
What's Ahead for Financial Advising?
Whos's Saving the Most and Why?
Making the Case for Critical Illness Insurance
Are You a Retirement Expert?
Selling the "Best Plan"
Taking Incremental Steps Toward Success
Investment Strategies for Today’s Consumers
How Tax Efficient is Your Investment and Retirement Portfolio?
Ideas for a Profitable Practice
Crossing the Two Client Relationship Bridges
Working with Muslim-American Clients
Attracting and Serving Today's High-Net-Worth Clients
Becoming a Networking Success
Advisor Today - March/April 2016