The Power Combo: Med Supp + Hospital Indemnity for Better Client Outcomes
AEP is fast approaching, and this year brings a unique set of challenges for Medicare solutions agents and clients. Significant Medicare Supplement (Med Supp) premium hikes are expected. Many are already seeing 20%+ increases on Plan G premiums.
Agents are also anticipating lower commissions and increased regulatory scrutiny. These issues are impacting sales today—well ahead of AEP—and now is the time to adapt and strategize.
Opportunities
Pairing hospital indemnity insurance with a Medicare Advantage (MA) plan or a high-deductible Med Supp plan like Plan G is a promising strategy. It balances affordability and network flexibility. This combination addresses client concerns over rising costs and agent concerns over declining commission structures.
Why This Strategy Works for Clients
Hospital indemnity plans are supplemental products that pay directly to the insured regardless of other coverage, covering:
- Hospital confinement
- Observation unit stays
- Emergency room visits
- Transportation and lodging
- Inpatient mental health care
These plans often come with simplified underwriting, making them accessible for many clients.
Pairing this with a high-deductible Med Supp Plan G helps control premium costs while maintaining flexibility. Med Supp plans allow clients to choose their own providers, avoiding the network restrictions of MA plans. Once the deductible is met, Plan G covers:
- Part A coinsurance and hospital costs up to 365 additional days
- Part B coinsurance or copayment
- First 3 pints of blood
- Hospice care
- Skilled nursing facility care
More information on Med Supp comparisons can be found at Medicare.gov.
Why This Strategy Works for Agents
Carriers have been reducing or eliminating commissions on traditional Med Supp products. In contrast, hospital indemnity plans have remained stable and continue to offer competitive compensation. By pairing hospital indemnity with high-deductible Med Supp, you can:
- Offer affordable and valuable solutions
- Maintain higher compensation levels
- Differentiate yourself in the market
Partner with EMG Insurance Brokerage
At EMG Insurance Brokerage, we’re committed to helping you implement innovative and profitable Medicare strategies. We offer:
- Access to top Med Supp and hospital indemnity carriers
- Contracting and support to get you started
- Marketing tools to position you for success during AEP and beyond
Have questions? Reach out to your EMG Sales Director today!
