Why do some agents push Medicare Advantage plans over Medigap-should I be skeptical?
Answered by 14 licensed agents
There are “captive agents” who work exclusively for only one insurance company. Therefore, they push the Advantage plan since it is the only one for that agent to earn a commission! Thus, what I have said before many times in this column, it is essential to be interviewed by 2-3 different agents, preferably an independent agent who may also be known as “a broker” who is affiliated with a variety of different firms and can tailor his advice to specifically YOU! Don't be afraid to ask the question as to whether she/he is a broker and have the agent name a minimum of five different national insurance firms for whom an application can be written! Remember: there is no “cookie-cutter” plan recommendation for everyone!
If you have an agent who pushes any certain plan you should be skeptical, and the said agent is probably not looking out for your best interest. No one plan is perfect for everyone. You need to know the differences between Original Medicare and Medicare Advantage plans and how they could affect your healthcare.
I think you should be skeptical. Pushing one plan over another is not a great way to help your clients find the plan they want and need. These discussions should focus on the priorities of the customer and the agent should help bring you in for a soft landing upon the plan that really is best for you. If an agent is pushy I would consider that poor form.
Medicare Advantage plans pay higher commissions and high renewals than Medigap plans. An agent should give you all the details on all the plans and let you, the consumer decide which option is best.
Commissions are much higher with Medicare Advantage over Medigap so yes, you should be skeptical. There are also significant drawbacks to Medicare Advantage plans. With an Advantage Plan the insurance company is managing the whole kit and kaboodle. They can get between you and your doctor and put up roadblocks to your getting the care you need. They do this in the name of saving us all money, but sometimes it seems more like they are protecting their profit more than protecting you.
On top of that there are changes every year to your plan, networks to deal with, and out-of-pocket maximums that might be higher than you remember when you signed up (do to those annual plan changes).
Be skeptical.
They do fit sometimes, but often people go with them because they are less expensive on a monthly basis.
The main reason is that the Compensation is higher on Medicare Advantage than on Medigap Plans. That is not a reason that is conducive to proper customer service, but rather greed!
Yes you have to be careful on who you meet with. Agents should be independent and show both options equally. Unfortunately some agents do push advantage plans because they pay more commissions. If you meet with an agent that does push one plan over another, you may want to look for someone else to help you with your options.
They do pay more commission, but they are also more stable in price for yearly renewals and offer more value covering drugs, dental, vision, hearing, and workout membership in one plan versus supplements...too
It is the cost. Advantage plans are often 0 premium plans or low premiums like$35/mo for each person. They are very attractive if you are quite healthy. Medsupp plans typically would cost $150/ mo for each person so only more affluent seniors can afford the Medsupp plans Plus they would also have the Rx plan monthly cost on top of that!
You should always be skeptical of an agent that is trying to push anything on you. My guess would be because the commission rates are higher on an Advantage plan that on a Medigap. Find an agent that will go over all of your options with you-- in an un-biased way. My main goal during initial consultations is education/information. I want to explain all of your options well enough for you to be able to make a good decision on your own. In my opinion, when someone is trying to push something on you, they have their best interest in mind, not yours.
Remember-- If it sounds too good to be true, it is!
Yes, you should be skeptical. Licensed and appointed agents should offer options that best meet your health and financial needs. A Medicare Advantage Plan may be a good fit for one person, whereas a Medicare Supplement Plan might be a better fit for another. Find a LOCAL, licensed, and appointed agent who will listen to your needs and help you find a plan that fits your healthcare needs and lifestyle.
