Medicare Careers: What Does it Take to Succeed as an Agent?
If you’re looking for a new career, you should consider Medicare insurance sales. Medicare agents have significant earning potential and a promising future of stable career growth – but it’s not just about the money. Medicare agents also get to help others while taking control of their own careers. For the right person, Medicare sales can be a very rewarding and lucrative career.
Do you have what it takes to succeed as a Medicare agent? Keep reading to find out more about the booming Medicare market and the training and skills needed to work as an agent and grow your Medicare career.
The Medicare Market Is Booming
The Baby Boomer generation is rapidly aging into Medicare.
Although some younger individuals qualify for Medicare based on medical issues, most Americans age into Medicare when they turn 65. According to the U.S. Census Bureau, about 10,000 Baby Boomers turn 65 each day. By 2030, all Baby Boomers will be 65 or older. This means that Medicare agents have an increasingly large pool of prospective clients to work with.
Medicare is a federal government program, but enrollees also typically purchase policies from private companies that work with Medicare. There are a lot of options to consider, and agents play an important role in helping enrollees find the coverage that suits their needs.
Medicare enrollees have two main choices:
Medicare Advantage plans have been gaining popularity in recent years. According to CMS, approximately 24 million people with Medicare enrolled in a Medicare Advantage plan for 2020. In 2020, there was an average of 39 Medicare Advantage plan choices per county.
Medicare Advantage plans often include additional benefits not provided in Original Medicare, and recent rule changes have allowed insurers to expand their offerings. This means that there’s considerable variation from plan to plan. With so many options and variables, Medicare beneficiaries need more assistance than ever in navigating their election decisions. That’s where Medicare agents help.
What Skills Do Medicare Agents Need?
Not everyone is cut out to be a successful Medicare agent. Here are five traits will help you succeed in a Medicare career:
What Training Do Medicare Agents Need?
You can’t just call yourself a Medicare agent and start selling policies. Before you do anything else, you need to go through training, testing and licensing requirements. After that, you’ll need to keep up with continuing education requirements.
How Much Can Medicare Agents Earn?
According to Zip Recruiter, Medicare insurance agents earned an average of $52,817 a year as of May 26, 2020. However, there is considerable variation in how much agents earn.
Independent Medicare agents earn a commission on the plans they place, not a salary. This commission includes an initial payment the first year the policy is in place and a payment of half as much in subsequent years for renewals or a “like plan type” enrollment change.
The commission structure means that you control your earnings potential. The more plans you sell, the more you earn. This is not always the case in traditional employment situations.
This arrangement also means that Medicare agents can build a residual income. The first year you work, you will only earn commissions on initial sales. After that, you will earn commissions based on renewing sales, as well as any initial payments for new sales. In this way, your income can grow from year to year. You’ll even make money without making any new sales at all – although the best way to grow your income is to make more sales each year.
In 2020, the national commission limit for the initial year for Medicare Advantage plans is $510, although some jurisdictions have higher or lower rates. The national commission limit for the initial year for prescription drug plans is $78. Maximum commission amounts can increase each year.
What Are the Advantages of Working Under an IMO or FMO?
Medicare agents have a lot to keep track of regarding regulations, training, marketing and more. Working under an IMO or FMO can help agents stay on top of everything. IMOs and FMOs can also provide important resources that help agents succeed, including: