Looking back at the 2019 Medicare AEP, around 80% of those selecting Medicare Advantage plans across the United States opted for plans with $0 premiums. According to CMS, 24.4 million Medicare Beneficiaries are expected to enroll in MA plans in 2020, which is up from 22.2 million in 2019. The average monthly premium for a 2020 MA plan is $23, which is significantly lower as we continue to adjust to a post ‘Cost Plan’ world.
The attractiveness of a $0 premium plan is obvious, so it’s important for agents to ensure clients are educated on how to protect themselves from the higher out of pocket costs associated with $0 premium plans. One way, is to purchase Hospital Indemnity coverage from the outset in order to ensure GI and coverage renewal protections.
It’s also important to remember that the lower premium plans often come with a narrower network, so ensure travel and lifestyle questions are addressed. The importance of yearly review during AEP becomes even more important as health, pharmacy and lifestyles questions change; we often find agents changing their clients plans as they cycle through their ‘Go Go’, ‘Slow Go’ and ‘No Go’ years.
Medicare Advantage, Medicare Savings Accounts and Medicare Supplements all have a place in your offerings and needs analysis. Having a yearly review is key to ensuring you are providing the very best service to your clients.