Consumer Choice through Brokerage with Agent Service
Leads
Referrals, Direct Mail and CMS guidelines on solicitation
Many potential Medicare Insurance Sales Consultants just click on this "leads" subpage because they already appreciate that:
1) The majority of Seniors realize that they need to price shop for their Medigap, Medicare Advantage or at leat their Part D during the Annual Election Period.
2) Since this is a "need based" sale, how do we put ourselves in front of as many people as possible?
3) If I am going to ask for the maximum Medicare Advantage payout possible (as allowed by CMS) of $402 ($201 for existing Medicare Advantage Beneficiaries), by paying for my own leads, (some Agencies provide leads, but with an offsetting lower commission, often half as much in order to finance the leads) what is my cost per lead for direct mail, or seminar attendee?
We encourage you to read our previous "services" page, as it will instill a sense that unlike life insurance or mutual funds, Medicare is a great opportunity to find receptive Seniors, eager to save money. When they bring in a son or daughter to the appointment to help them understand their options, you might also gain an investment or insurance customer. Many Seniors, after having realized that they've paid an insurance company over $10,000 in just a few years for a Plan F Medigap, while being relatively healthy, want to compare Medicare Advantage copays with their high premiums, especially since the zero premium Medicare Advantage includes their similar Part D, with similar brand drug copays with the same doughnut hole exposure. If you appreciate the above sentence, you may also comprehend just how a normal conversation turns into a referral ("you should talk to so-and-so about their medicare"), based on saving Medicare premiums or co-payments. Once your family and friends (including your extended circle of "electronic" friends on Facebook, Google+, etc) understand that you save Medicare premiums and copays, you will enjoy referrals.
The Centers for Medicare Services (CMS) has received legitimate complaints from Beneficiaries that they were contacted on a "cold call" or unsolicited basis. Notwithstanding the obvious "Do Not Call" national registry, Agents are no longer allowed to call Medicare Beneficiaries on this unsolicited basis, although the Aug of 2011 latest statement from Medicare, does spell out the provision for a Scope of Appointment:
http://www.cms.gov/ManagedCareMarketing/Downloads/AgentBrokerDosDonts080411.pdf
If a family member or a friend gives you the name and phone number of a friend, just thank them and tell them that due to Medicare's newer solicitation rules that the Referral will need to call you, as the Agent, first, before you call them. From a practical matter, while you as an Agent always have your calendar handy, the Beneficiary doesn't. Having them call you allows you to set the appointment immediately, following up with the Scope of Appointment. Otherwise, it might be presumed to be a solicitation. Agents can also give Business Reply Cards to their Family and Friends, as this signed information request functions like a returned mailer, giving proof that the Beneficiary, or interest party is the one who specifically asked you in writing to contact them in regards to Medicare.
Note that the above Medicare hyperlink also mentions contacting a Beneficiary and then transitioning to Medicare Part C or Part D. Even though the Beneficiary might lead the conversation and ask you to tell them about Part C or D, note the language in the hyperlink. Note also that a Scope of Appointment is not the same as a Permission to Call (or Business Reply Card). The SOA gives permission and authorization regarding the presentation of a Part C or D. The PTC is focused on whether or not you placed an unsolicited call or unsolicited contact. In short, while an Agent naturally prefers referrals from their natural market or from seminar attendees, they should have the PTC in addition to the SOA. Normally, just giving out extra business cards and saying "have them call me" is sufficient since the new guidelines need this PTC. While you could legitimately solicit a Beneficiary for any non-Part C or Part D product, like a Medigap, or even a non-health product like a Reverse Mortgage, if they then ask you about Part C or Part D, you would have made contact without a written permission to call. This leads us to the topic of direct mail, which, by its nature, gives you a reply card which is filled out in their handwriting as there is no question that they are asking for the information.
Direct Mail is a simple lead program: Mailing companies do all the work for you, including procuring Seniors names by age and zip code area , typing up the introductory letter, including the reply card and affixing postage. Mailing companies can almost always do this at a cost of about 42 cents per mailer (postage, letter and reply card), which compares favorably with just a first class postage stamp at 45 cents. The profitability is based upon the typical 1.5% - 3% response rate, and how many people don't list their phone number. Note that Medicare guidelines do not allow us to limit the fulfillment to only those who provide their phone number. There are other regulations, like the language, "this is an advertisement", but these CMS details are all covered in an Agent's online certification. By working with a particular Plan Sponsor, and their corresponding Medicare approval number on the mailer, these mailer guidelines should be met. If 1,000 mailers cost $420, with a 2% average response rate (20 qualified leads), that means that just one sale to a single person (at the CMS maximum of $402) out of 20 "information requests" responses, will more than cover the cost of mailing. If that sale is to a couple, as are over half of all sales are during the Annual Election Period, then this $420 investment in direct mail leads turned into a $804 gross profit, or close to a 100% return.
Many seasoned Agents will invest $4,200 into 10,000 mailers for the AEP season, anticipating this targeted 200 responses. At just over 10 total enrollments (5 couples), they break even. If they only made 7 sales (4 couples and 3 singles, as this single-to-married ratio is typical in the Annual Election Period as all ages from 65 and up are eligible to enroll), they've more than covered their investment and have had many opportunities to offer annuities, mutual funds, senior life insurance, long term care, etc. More simply, the other products (annuities, etc) have a much higher lead cost, so Agents enjoy the opportunity to just talk with anyone, even if just about the pending Medicare legislative changes. Of course, no Agent wants to invest $4,200 just to hopefully break even. They hope to get more than 200 responses and even at this 2% response rate, they surely expect to close at above this 3.5% rate (7 sales divided by 200 mail returns). Here's what an Agent would have to do to make $5,248 in the Oct 15th - through Dec 7th Annual Election Period: Let's assume a slightly higher $4,400 investment in 10,000 mailers, and keep the same average 2% response rate.
To be conservative, let's also presume that 50 out of that 200 (25%) didn't put down their phone number, and that another 25% either never answered or never returned the Agent's voice mail messages. That only leaves 100 "conversations" and let's presume that half of those simply said "no" to a seminar invitation, in home visit, appointment in conference room of their local library, etc. That only leaves 50 real face-to-face appointments (only 1-out-of-4 mail backs), but as described above, about 65% of all Senior Households have Spouses, which is a "double sale". So, if we can close this "need based", zero premium Medicare Advantage with includes the Part D, at a conservative 33%, then that leaves 15 sales . . . again, a conservative number based on 200 responses to a pre-qualified list by income, age and zip code. If 9 sales are made to couples and the remaining 6 sales are made to singles, out of the 15 total "family unit" sales, then 18 sales are made to 9 couples.
When added to the 6 singles = 24 total applications X $402 = $9,648 gross income - 4,400 in mailers = $5,248 of net income. Note that AEP is only 7 weeks long, so 15 closed appointments can take place either just on a Saturday (time off from a full time job), or one or two evenings per week (again, presuming a full time job with regular business hours). At the above 50 appointments in the above example, or at a pace of 7 appointments per week, many Agents either book their appointments every hour on the hour for 7 hours straight just on a Saturday, or 2 - 3 nights per week, or in some combination. Many Seniors realizing that the Annual Election Period is a short time frame, will willingly agree to a Sunday afternoon appointment.
Disclaimer: Note that this conservative example above is no guarantee of any level of income and provided only as an illustration. An Agent is at risk at any level to experience more or less in any category of responses, appointments, closes, disenrollment, etc., as any one variable may alter the gross or net income. It is also to be noted that this example presumes a $402 commission per app, which is the maximum amount allowable by CMS in 2012 for those Medicare Beneficiaries who have never yet been enrolled in a Medicare Advantage. CMS only allows $201 (half of this $402, for "new to Medicare Advantage) for those Beneficiaries who are either transferring from one Medicare Advantage to another, or who have been in a Medicare Advantage previously. While the this reduction of commission for re-enrollments into Medicare Advantage would naturally decrease the above calculations, a higher offsetting rate of setting appointments and closing sales may equate to the lead break even of two sales at $201 each vs. the $400+ cost per 1,000 mailers.
Enhanced Lead Generation through legislative developments and updates:
President Obama's Health Care Reform, has everyone concerned, especially Seniors. Ironically, Wisconsin Representative Ryan's Medicare Voucher Plan is similar to the successful and popular Medicare Advantage. Many Seniors are misinformed and fearing the worst: Their Doctor is going to stop accepting Medicare. Recent headlines indeed show a significant decline in the number of Generalists as well as Specialists who are opting out of Medicare's low reimbursements. Seniors ask once a year, as the legislation to reduce Medicare reimbursed is repealed if only for that one year, "What good is my Medicare Supplement if my preferred Doctor doesn't accept Medicare?" Even in the future, as the annual reset to the currently legislated 20+% annual decrease in reimbursement becomes effective, or is temporarily overridden, Seniors are eager for our fee advice. For example, at the end of 2011, Congress again eliminated the automatic 20+% cut in "medicare approved amounts", as this temporary stay will again be debated by Congress in late 2011.
Medicare has never had much of a budget for informational outreach. Ongoing debate is focused on cutting Medicare's expenses, so any outgoing mailed newsletters, informational seminars, newspaper ads, etc. to Beneficiaries are less likely. Customer Service at CMS is much like the IRS: After a long wait on hold, a first level Rep will try to answer the most basic questions, then will refer the question on (after another long wait) to a secondary level, who will then promise a call back. The similarity between CMS and the IRS is that they both make a good faith effort to answer questions, but it is a given that they do not give any advice, suggestions or otherwise steer the Beneficiary. CMS mandates that if a soliciting Agent (one who describes what CMS deems as "plan specific") attempts to cross this threshold of "plan specifics", they must have passed the on-line (and possibly the in-classroom physical training) certification of each Plan Sponsor whose Part C or Part D they are soliciting. It is this certification which makes an Agent valuable and unique. A Senior can chat with anyone they like, including the Medicare Customer Service Rep, but only a certified Agent (including Agents at the TeleSales Department of a Plan Sponsor) is allowed to take an enrollment (unless of course, the Beneficiary is enrolling through website of Medicare.Gov or the Plan Sponsor, or is mailing in their application).
The point to the above description is to make a new Agent to Medicare realize how easy it can be to garner referrals (again provided that they have proof that the referral called you initially). Any one can tell you what medicine to take, but only a licensed Doctor can write the prescription. Likewise, any uncertified Agent can speak their mind about Medicare Advantage, as they are only exercising their right to free speech. However, if the Beneficiary is being advised (whether from the home office or from an Agent) to enroll in a specific Medicare Plan, and there is a financial payment made for that advice, then the Certification (Medicare Advantage, Part C --or-- Prescription Drug Plan, Part D) and Insurance State Licensing apply.
Medicare Seminars
Seminars on Medicare, Medicaid, and Senior Issues can be offered at Restaurants, Senior Facilities, Libraries, etc. Our home office will be conducting public seminars, geared to those who are turning age 65, or on Medicaid + Medicare on an ongoing basis throughout the Greater Cook, Lake, Will, and DuPage Counties of Northeastern (Chicago) Illinois. There are several seminars, covering a variety of topics and updates from 2012 through the final implementation of health reform in 2020, from Medicare to conservative Financial Strategies. Medicare Seminars are generally held from the months of September though December 7th. We will experience the usual media blitz for the Open Enrollment Period, which will run from October 15 through December 7th. At no out-of-pocket cost to you, our medicare seminars can be held at any time with an invitation from your organization, charity, or church or synagogue, etc. This money savings information is important as Seniors need to find about their new rights and options regarding Medicare, especially with our new rights, options and money savings strategies in 2012 and beyond.
Many potential Medicare Insurance Sales Consultants just click on this "leads" subpage because they already appreciate that:
1) The majority of Seniors realize that they need to price shop for their Medigap, Medicare Advantage or at leat their Part D during the Annual Election Period.
2) Since this is a "need based" sale, how do we put ourselves in front of as many people as possible?
3) If I am going to ask for the maximum Medicare Advantage payout possible (as allowed by CMS) of $402 ($201 for existing Medicare Advantage Beneficiaries), by paying for my own leads, (some Agencies provide leads, but with an offsetting lower commission, often half as much in order to finance the leads) what is my cost per lead for direct mail, or seminar attendee?
We encourage you to read our previous "services" page, as it will instill a sense that unlike life insurance or mutual funds, Medicare is a great opportunity to find receptive Seniors, eager to save money. When they bring in a son or daughter to the appointment to help them understand their options, you might also gain an investment or insurance customer. Many Seniors, after having realized that they've paid an insurance company over $10,000 in just a few years for a Plan F Medigap, while being relatively healthy, want to compare Medicare Advantage copays with their high premiums, especially since the zero premium Medicare Advantage includes their similar Part D, with similar brand drug copays with the same doughnut hole exposure. If you appreciate the above sentence, you may also comprehend just how a normal conversation turns into a referral ("you should talk to so-and-so about their medicare"), based on saving Medicare premiums or co-payments. Once your family and friends (including your extended circle of "electronic" friends on Facebook, Google+, etc) understand that you save Medicare premiums and copays, you will enjoy referrals.
The Centers for Medicare Services (CMS) has received legitimate complaints from Beneficiaries that they were contacted on a "cold call" or unsolicited basis. Notwithstanding the obvious "Do Not Call" national registry, Agents are no longer allowed to call Medicare Beneficiaries on this unsolicited basis, although the Aug of 2011 latest statement from Medicare, does spell out the provision for a Scope of Appointment:
http://www.cms.gov/ManagedCareMarketing/Downloads/AgentBrokerDosDonts080411.pdf
If a family member or a friend gives you the name and phone number of a friend, just thank them and tell them that due to Medicare's newer solicitation rules that the Referral will need to call you, as the Agent, first, before you call them. From a practical matter, while you as an Agent always have your calendar handy, the Beneficiary doesn't. Having them call you allows you to set the appointment immediately, following up with the Scope of Appointment. Otherwise, it might be presumed to be a solicitation. Agents can also give Business Reply Cards to their Family and Friends, as this signed information request functions like a returned mailer, giving proof that the Beneficiary, or interest party is the one who specifically asked you in writing to contact them in regards to Medicare.
Note that the above Medicare hyperlink also mentions contacting a Beneficiary and then transitioning to Medicare Part C or Part D. Even though the Beneficiary might lead the conversation and ask you to tell them about Part C or D, note the language in the hyperlink. Note also that a Scope of Appointment is not the same as a Permission to Call (or Business Reply Card). The SOA gives permission and authorization regarding the presentation of a Part C or D. The PTC is focused on whether or not you placed an unsolicited call or unsolicited contact. In short, while an Agent naturally prefers referrals from their natural market or from seminar attendees, they should have the PTC in addition to the SOA. Normally, just giving out extra business cards and saying "have them call me" is sufficient since the new guidelines need this PTC. While you could legitimately solicit a Beneficiary for any non-Part C or Part D product, like a Medigap, or even a non-health product like a Reverse Mortgage, if they then ask you about Part C or Part D, you would have made contact without a written permission to call. This leads us to the topic of direct mail, which, by its nature, gives you a reply card which is filled out in their handwriting as there is no question that they are asking for the information.
Direct Mail is a simple lead program: Mailing companies do all the work for you, including procuring Seniors names by age and zip code area , typing up the introductory letter, including the reply card and affixing postage. Mailing companies can almost always do this at a cost of about 42 cents per mailer (postage, letter and reply card), which compares favorably with just a first class postage stamp at 45 cents. The profitability is based upon the typical 1.5% - 3% response rate, and how many people don't list their phone number. Note that Medicare guidelines do not allow us to limit the fulfillment to only those who provide their phone number. There are other regulations, like the language, "this is an advertisement", but these CMS details are all covered in an Agent's online certification. By working with a particular Plan Sponsor, and their corresponding Medicare approval number on the mailer, these mailer guidelines should be met. If 1,000 mailers cost $420, with a 2% average response rate (20 qualified leads), that means that just one sale to a single person (at the CMS maximum of $402) out of 20 "information requests" responses, will more than cover the cost of mailing. If that sale is to a couple, as are over half of all sales are during the Annual Election Period, then this $420 investment in direct mail leads turned into a $804 gross profit, or close to a 100% return.
Many seasoned Agents will invest $4,200 into 10,000 mailers for the AEP season, anticipating this targeted 200 responses. At just over 10 total enrollments (5 couples), they break even. If they only made 7 sales (4 couples and 3 singles, as this single-to-married ratio is typical in the Annual Election Period as all ages from 65 and up are eligible to enroll), they've more than covered their investment and have had many opportunities to offer annuities, mutual funds, senior life insurance, long term care, etc. More simply, the other products (annuities, etc) have a much higher lead cost, so Agents enjoy the opportunity to just talk with anyone, even if just about the pending Medicare legislative changes. Of course, no Agent wants to invest $4,200 just to hopefully break even. They hope to get more than 200 responses and even at this 2% response rate, they surely expect to close at above this 3.5% rate (7 sales divided by 200 mail returns). Here's what an Agent would have to do to make $5,248 in the Oct 15th - through Dec 7th Annual Election Period: Let's assume a slightly higher $4,400 investment in 10,000 mailers, and keep the same average 2% response rate.
To be conservative, let's also presume that 50 out of that 200 (25%) didn't put down their phone number, and that another 25% either never answered or never returned the Agent's voice mail messages. That only leaves 100 "conversations" and let's presume that half of those simply said "no" to a seminar invitation, in home visit, appointment in conference room of their local library, etc. That only leaves 50 real face-to-face appointments (only 1-out-of-4 mail backs), but as described above, about 65% of all Senior Households have Spouses, which is a "double sale". So, if we can close this "need based", zero premium Medicare Advantage with includes the Part D, at a conservative 33%, then that leaves 15 sales . . . again, a conservative number based on 200 responses to a pre-qualified list by income, age and zip code. If 9 sales are made to couples and the remaining 6 sales are made to singles, out of the 15 total "family unit" sales, then 18 sales are made to 9 couples.
When added to the 6 singles = 24 total applications X $402 = $9,648 gross income - 4,400 in mailers = $5,248 of net income. Note that AEP is only 7 weeks long, so 15 closed appointments can take place either just on a Saturday (time off from a full time job), or one or two evenings per week (again, presuming a full time job with regular business hours). At the above 50 appointments in the above example, or at a pace of 7 appointments per week, many Agents either book their appointments every hour on the hour for 7 hours straight just on a Saturday, or 2 - 3 nights per week, or in some combination. Many Seniors realizing that the Annual Election Period is a short time frame, will willingly agree to a Sunday afternoon appointment.
Disclaimer: Note that this conservative example above is no guarantee of any level of income and provided only as an illustration. An Agent is at risk at any level to experience more or less in any category of responses, appointments, closes, disenrollment, etc., as any one variable may alter the gross or net income. It is also to be noted that this example presumes a $402 commission per app, which is the maximum amount allowable by CMS in 2012 for those Medicare Beneficiaries who have never yet been enrolled in a Medicare Advantage. CMS only allows $201 (half of this $402, for "new to Medicare Advantage) for those Beneficiaries who are either transferring from one Medicare Advantage to another, or who have been in a Medicare Advantage previously. While the this reduction of commission for re-enrollments into Medicare Advantage would naturally decrease the above calculations, a higher offsetting rate of setting appointments and closing sales may equate to the lead break even of two sales at $201 each vs. the $400+ cost per 1,000 mailers.
Enhanced Lead Generation through legislative developments and updates:
President Obama's Health Care Reform, has everyone concerned, especially Seniors. Ironically, Wisconsin Representative Ryan's Medicare Voucher Plan is similar to the successful and popular Medicare Advantage. Many Seniors are misinformed and fearing the worst: Their Doctor is going to stop accepting Medicare. Recent headlines indeed show a significant decline in the number of Generalists as well as Specialists who are opting out of Medicare's low reimbursements. Seniors ask once a year, as the legislation to reduce Medicare reimbursed is repealed if only for that one year, "What good is my Medicare Supplement if my preferred Doctor doesn't accept Medicare?" Even in the future, as the annual reset to the currently legislated 20+% annual decrease in reimbursement becomes effective, or is temporarily overridden, Seniors are eager for our fee advice. For example, at the end of 2011, Congress again eliminated the automatic 20+% cut in "medicare approved amounts", as this temporary stay will again be debated by Congress in late 2011.
Medicare has never had much of a budget for informational outreach. Ongoing debate is focused on cutting Medicare's expenses, so any outgoing mailed newsletters, informational seminars, newspaper ads, etc. to Beneficiaries are less likely. Customer Service at CMS is much like the IRS: After a long wait on hold, a first level Rep will try to answer the most basic questions, then will refer the question on (after another long wait) to a secondary level, who will then promise a call back. The similarity between CMS and the IRS is that they both make a good faith effort to answer questions, but it is a given that they do not give any advice, suggestions or otherwise steer the Beneficiary. CMS mandates that if a soliciting Agent (one who describes what CMS deems as "plan specific") attempts to cross this threshold of "plan specifics", they must have passed the on-line (and possibly the in-classroom physical training) certification of each Plan Sponsor whose Part C or Part D they are soliciting. It is this certification which makes an Agent valuable and unique. A Senior can chat with anyone they like, including the Medicare Customer Service Rep, but only a certified Agent (including Agents at the TeleSales Department of a Plan Sponsor) is allowed to take an enrollment (unless of course, the Beneficiary is enrolling through website of Medicare.Gov or the Plan Sponsor, or is mailing in their application).
The point to the above description is to make a new Agent to Medicare realize how easy it can be to garner referrals (again provided that they have proof that the referral called you initially). Any one can tell you what medicine to take, but only a licensed Doctor can write the prescription. Likewise, any uncertified Agent can speak their mind about Medicare Advantage, as they are only exercising their right to free speech. However, if the Beneficiary is being advised (whether from the home office or from an Agent) to enroll in a specific Medicare Plan, and there is a financial payment made for that advice, then the Certification (Medicare Advantage, Part C --or-- Prescription Drug Plan, Part D) and Insurance State Licensing apply.
Medicare Seminars
Seminars on Medicare, Medicaid, and Senior Issues can be offered at Restaurants, Senior Facilities, Libraries, etc. Our home office will be conducting public seminars, geared to those who are turning age 65, or on Medicaid + Medicare on an ongoing basis throughout the Greater Cook, Lake, Will, and DuPage Counties of Northeastern (Chicago) Illinois. There are several seminars, covering a variety of topics and updates from 2012 through the final implementation of health reform in 2020, from Medicare to conservative Financial Strategies. Medicare Seminars are generally held from the months of September though December 7th. We will experience the usual media blitz for the Open Enrollment Period, which will run from October 15 through December 7th. At no out-of-pocket cost to you, our medicare seminars can be held at any time with an invitation from your organization, charity, or church or synagogue, etc. This money savings information is important as Seniors need to find about their new rights and options regarding Medicare, especially with our new rights, options and money savings strategies in 2012 and beyond.
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