asj presents the producer’s guide to medicare your...

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Your Handbook to navigating tHe Maze of Medicare Marketing

ASJ PreSentS the Producer’S guide to medicAre

» 2009 medicAre mArket Study reSultS

» WhAt’S coming in 2010

» guide to getting your mArketing mAteriAl APProved by cmS

» 11 thingS you need to knoW About medicAre PArt d

» 4 StePS to generAting medicAre leAdS

FOR AGENT USE ONLY • NOT FOR CONSUMER DISTRIBUTION

FINAL EXPENSE• Low rates• $3,000 to $30,000• Diabetes accepted• Direct bill monthly • No phone interviews required • High commissions paid daily• 9-month advance

MEDICARE SUPPLEMENTS• Competitive Plans A to J• “A” rated company• High commissions• Faxed applications accepted• Draft fi rst premiums

Other Great FSI Products

LIFE INSURANCE20-Year Term• Reduced paid-up policy at the end of 20 years equal to or greater than premiums paid• High commissions and renewals

No Lapse UL• Available to age 90• $25,000 minimum

Along with our impressiveFINAL EXPENSE, MEDICARESUPPLEMENTS, and LIFE lineswe also carry:

❒ Long Term Care

❒ Home Health Care

❒ Cancer

❒ Indemnities

❒ Medicare Advantage

❒ Annuities

CALL NOW800-485-0096Fax: 866-539-4282dhaire@fi nancialservices-inc.comFSI Marketing

Plus, we’ll get you in frontof highly qualifi ed prospects!

Get back into the swing of things withFSI’S FINAL EXPENSE and MED SUPP

supplement to the agent’s sales journal, oCtoBer 2009 3FOR AGENT USE ONLY • NOT FOR CONSUMER DISTRIBUTION

FINAL EXPENSE• Low rates• $3,000 to $30,000• Diabetes accepted• Direct bill monthly • No phone interviews required • High commissions paid daily• 9-month advance

MEDICARE SUPPLEMENTS• Competitive Plans A to J• “A” rated company• High commissions• Faxed applications accepted• Draft fi rst premiums

Other Great FSI Products

LIFE INSURANCE20-Year Term• Reduced paid-up policy at the end of 20 years equal to or greater than premiums paid• High commissions and renewals

No Lapse UL• Available to age 90• $25,000 minimum

Along with our impressiveFINAL EXPENSE, MEDICARESUPPLEMENTS, and LIFE lineswe also carry:

❒ Long Term Care

❒ Home Health Care

❒ Cancer

❒ Indemnities

❒ Medicare Advantage

❒ Annuities

CALL NOW800-485-0096Fax: 866-539-4282dhaire@fi nancialservices-inc.comFSI Marketing

Plus, we’ll get you in frontof highly qualifi ed prospects!

Get back into the swing of things withFSI’S FINAL EXPENSE and MED SUPP

What are your biggest challenges withselling Medicare supplement?

Prospecting for new business

Clients think the options are confusing

Staying compliant with laws and regulations

Clients think original Medicare coverage is sufficient

I would benefit from more product training

Clients don’t trust private insurance companies

Other

0% 10% 20% 30% 40% 50% 60% 70%

70%

55%

33%

18%

16%

16%

12%

MA, Med Supp, And pArt d: 3 MArketS, CountleSS ChAllengeS First-ever Medicare Market Study proves that not allMedicare products are created equal

By HEATHER TRESE, ASSociATE EdiToR

treSe, page 4

The new CMS marketing and sales regulations are too strict


Finding a plan with the right mix of doctors and benefits

for my client


Commissions are too low

The new CMS marketing and sales regulations are too

confusing

Commissions are too spread out over time

Clients think original Medicare coverage is sufficient



Other

52%

50%

43%

42%

13%

37%

26%

9%

4%

4%

What have you found to be the biggestchallenges with selling Medicare Advantage?

0% 10% 20% 30% 40% 50% 60% 70%

4%

2 *Agent Media is the publisher of the Agent’s Sales Journal.

People often talk about Medicare as if it were one product. But the truth is that the three types of Medi-care products that agents are able to sell — Medicare

supplement, Medicare Advantage (MA), and Medicare Part D — are three very different products with different market expectations and unique challenges.

In our first-ever Medicare Market Study, conducted by Agent Media* in partnership with the American Association for Medicare Supplement Insurance, we explored each market segment separately, surveying more than 350 agents who sell Medicare products about the issues they face each and every day when working with senior clients. The results give exclusive insight into the Medicare market, and help us to better differentiate each of the Medicare markets as separate entities. We’ll explore the results of the study by market, then follow with an examination of those areas of the study that affect the Medicare industry as a whole.

Medicare supplement: Prospecting for a better futureDespite the changes that have come to the market, the majority of agents expected their Medicare supplement sales to increase in the next 12 months; a full 58 percent

of producers anticipated seeing an increase in Med supp sales, and only 8 percent predicted a decrease in their sales. This comes despite the fact that only 38 percent of agents reported that their Med supp sales increased in the past 12 months.

So why do agents think they will be even more successful in the next year? Many producers attributed the predicted change to the lack of availability of private fee-for-service plans and other deficiencies in the Medicare Advantage model. One agent who specializes in selling Medicare supplements said, “People are now realizing that Medicare Advantage plans are not what they thought they were, and are going back to Med supp plans.”

1

4 supplement to the agent’s sales journal, oCtoBer 2009

But the rosy outlook for Med supp doesn’t mean that agents aren’t faced with their share of challenges. In fact, the biggest problem for producers involved in selling Medicare supplements is prospecting for new business (70 percent), followed by clients thinking the options are confusing (55 percent), and staying compliant with laws and regulations (33 percent). (Chart 1)

Medicare Advantage and cMS: A bleak outlook The future doesn’t look very bright for Medicare Advan-tage: More than one-quarter (29 percent) of respondents reported that they expect their MA sales to decrease in the next year, although nearly half (49 percent) said that their Medicare Advantage sales had increased in the past 12 months — a higher percent increase than for any other Medicare product.

So if sales were increasing last year, why do so many agents anticipate a decrease next year? One agent from Orange, TX mirrored many other producers’ concerns when he pinpointed the Centers for Medicare and Medicaid Services (CMS) as a cause for concern.

“[The new] CMS regulations, in reality, prevent agents from contacting and educating Medicare beneficiaries,” he said.

treSe, from page 3

In fact, 52 percent of agents said that the issue they find the most challenging in the Medicare Advan-tage market was that the new CMS marketing and sales regulations are too strict. Another 26 percent of

agents said that the new CMS regulations were too confusing, and 37 percent said they thought the commissions (which are regulated by CMS) were too low.

Aside from CMS, prospecting is an issue for agents spe-cializing in MA sales: Exactly half the agents said it was their biggest challenge. Forty-three percent said they were most challenged by finding a plan with the right mix of doctors and benefits for their clients, and 42 percent said that clients thought the options were confusing. (Chart 2)

Medicare Part d: A confusing and ever-changing market Of all the Medicare markets, Part D remains the most constant in terms of agent sales performance and optimism for the future. In the past 12 months, 34 percent of agents said they saw their Part D sales increase, and 22 percent said they saw a decrease in their sales. For the most part, producers expect things to remain steady for the next year: Thirty-eight percent

Referrals

Selling to existing clients

Direct mail

Seminars

Partnering with other professionals

Purchased leads

Telemarketing

Internet

TV/radio advertising

Magazine/newspaper advertising

Other

52%46%

0% 10% 20% 30% 40% 50% 60%

What have you found to be the most effective way to prospect for Medicare D clients?

Medicare Part D Medicare Advantage Medicare supplement

48%

21%14%

25%

6%8%

7%

3%8%

5%

3%8%

3%

3%3%3%

3%3%3%

3%2%2%

2%2%

1%

0%1%0%

6%7%

5%

Inconsistent pricing and formularies from year to year



The new CMS marketing and sales regulations are too strict

Clients don’t perceive the need for Medicare Part D

Too many options

The new CMS marketing and sales regulations are too

confusing

Clients think original Medicare is sufficient



Other

54%

39%

37%

33%

19%

23%

19%

5%

4%

3%

What are your biggest challenges withselling Medicare Part D?

0% 10% 20% 30% 40% 50% 60% 70%

12%

3 4

Learn more about what 2010 might hold for Medicare on page 6.

supplement to the agent’s sales journal, oCtoBer 2009 5

expect their sales to increase in the next 12 months, while 18 percent believe they’ll see a decrease, and the remainder anticipate their sales to remain constant.

The main challenge for agents in the Part D market, cited by 54 percent of respondents, is that the pricing and for-mularies change too much from year to year. Another issue, possibly arising from the constantly changing formularies, is that clients think the options are confusing (39 percent). Prospecting for new business is also a challenge (37 percent), and 33 percent of agents think the new marketing and sales guidelines for Part D are too strict. (Chart 3)

Finding the best prospectsAccording to our study, a much higher percentage of agents are selling to first-time buyers of Medicare than to benefi-ciaries converting from other carriers. In fact, 45 percent of agents selling Part D and Med supp and 37 percent of agents selling Medicare Advantage said that more than half of their sales were made to first-time buyers.

Part of this is very likely wrapped up in the fact that the baby boomer generation is rapidly aging and reaching eligibility for the first time. Indeed, several agents that we

surveyed cited the aging popu-lation as the exact reason for their increased sales in the past 12 months, and many more believe that the continued ag-ing of the population will only help them in the years to come.

One agent who has been working in the Medicare Advantage market for just five years has already seen the effect that the baby boomers have had on her business.

“The increase [in business] will come simply because I have more referrals, and more people are turning 65 each year,” she said.

But often, the best clients can be found within your own book of business. Across all three products, referrals were named as the No. 1 place to turn for new customers, with selling to existing clients named second. (Chart 4)

New rules, new president, new outlookWith all of the changes happening to the Medicare market, many agents are finding their practices transforming in front of them. In fact, one agent from Southfield, MI said she “de-cided to spend less time on [Medicare] due to an inability to make it a profitable product line.”

Indeed, the changes to the marketing and sales regulations have been the biggest blow of all. However, not all agents think that the Centers for Medicare and Medicaid Services were in the wrong.

One agent from Evans, GA said, “The rules and regulations were needed to stop the nonsense that has been going on.

Now, they need to be enforced. Companies need to police agents and get rid of the bad ones. High production doesn’t mean an agent is qualified to be on the street.”

But another producer isn’t as optimistic that the rules will weed out only the unethical agents.

“The rules hinder agents who are doing their job ethically,” she said. “Those agents who are unethical will always find a way around the rules.”

Many more agents agree, including one from Southern California.

“It is good to protect seniors, but CMS has gone too far the other way,” he said.

Another concern for many agents is the new president and what a Democratic Congress may mean for the future of Medicare. Seventy percent of agents, for example, believe that Obama’s plans to cut MA payments to insurers will likely cause them to sell fewer MA plans in the next year.

If you are going to be successful in any of the Medicare markets, you must first understand the individual challenges that particular market faces. Then, take a step back and look at the Medicare industry overall. Where is it headed? With more and more boomers reaching qualifying age and a Democratic government in control, there are sure to be changes coming. Are you going to be prepared for them when they arrive?

Heather Trese is the associate editor of the Agent’s Sales Journal.

She can be reached at [email protected] or 800-933-9449

ext. 225.

MethodologyIn April 2009, Agent Media*, in partnership with the American Association for Medicare Supplement Insur-ance, randomly surveyed licensed health producers nationwide. Agents were invited via an emailed survey link to take part in the study and were asked questions about their experience in the market and their outlook for and opinion on the Medicare industry. More than 350 individuals responded to the survey. As an incentive, a random drawing was held for a $100 American Express gift card. The survey results reflect responses given by personal producing agents who have sold at least one Medicare-related product in the past 12 months.

*Agent Media is the publisher of the Agent’s Sales Journal.

Want to understand some of Part D’s trickier elements? Turn to page 8.

To learn more about how you can prospect for Medicare clients, turn to page 9.


A new new deAl? whAt’S next for MediCAreBy dWANE McFERRiN

The only thing we have to fear is fear itself. President Franklin D. Roosevelt said this famous quote in the midst of the Great Depression, just before he proposed

the New Deal. It is interesting to note that, as we claw our way out of the worst recession since that time, we are hear-ing similar rhetoric from the Obama administration. Are the bailouts, stimulus packages, and health care reform plans a kind of New Deal for this generation of Americans?

New Deal or not, one thing is for certain: The recent reces-sion and our government’s reaction to it has only hastened the change coming to the Medicare system. And millions of seniors and insurance agents will soon begin feeling the ef-fects. For the professional agent, knowledge is key — knowing what changes are coming and how they are going to affect the market will help you react appropriately. Here is a short list of some of the major changes to Medicare that either have already occurred or are coming soon.• m & n in 2010: New Medicare supplement plans will be intro-

duced in 2010, with plans E, H, I, and J no longer being offered and at-home recovery benefits being replaced in favor of hospice benefits. New plans M and N will be introduced. These plans will feature copays and lower premiums to lure consumers away from traditional first-dollar coverage associated with Plan F. They will also compete against Medicare Advantage plans that have copays.

• new competition: Medicare supplement carriers have an oppor-tunity to refresh their rates in 2010, and there will be new entrants to the market. Expect to see fierce competition and innovation among private Medicare supplement carriers in 2010.

• reduced reimbursements: Reimbursement rates for Medicare Advantage plans are being reduced 4.5 percent for 2010 plans, forcing carriers to increase prices or copays for private fee-for-service (PFFS) plans, reduce commissions, or abandon the PFFS model altogether. This will be followed by the elimination of certain provisions from PFFS plans in 2011, essentially removing these plans from many markets.

• the fall of PFFS: Some carriers have already indicated that they will not renew the PFFS block, and an estimated 500,000 Medicare beneficiaries will be forced to seek a new health plan for Jan. 1, 2010 effective dates. Those receiving an Annual Notice of Change (ANOC) letter will be able to enroll in new plans as early as Oct. 1 for Jan. 1 effective dates.

• hmos and PPos expand: HMO and PPO plans will increase their service areas for 2010, reminding many people of the Medicare+Choice days of the late 1990s. Expect to see a broader

geographic footprint this time around, as plans will not be re-stricted to the larger cities. The coverage is likely to be popular: The Part D coverage, PPO out-of-network provisions, and low maximum out-of-pocket features will make these plans attrac-tive.

• recession fallout: Plans may be forced to reduce Medicaid pay-ments or eligibility criteria to help make up for budget shortfalls in California, Massachusetts, and other states. Meanwhile, the Centers for Medicare and Medicaid Services (CMS) have imposed stricter requirements on special needs plans, reducing the number of available Medicare Advantage plans to serve the dual-eligible and chronic illness markets.

• opportunities in the group market: The group retiree health market is imploding. Many Fortune 500 companies are dropping the subsidized health plans for their retirees in favor of group Medicare Advantage, or even pushing their retirees into the individual market. Expect to see continued growth of services such as Web sites and call centers that guide seniors in their search for affordable alternatives.

• A booming market: The baby boomers begin aging into Medicare in 2011, doubling the rate of age-ins over 2008. For the next 20 years, 10,000 new retirees will be added to Medicare each day, representing 3.6 million people new to Medicare each year.

Clearly, change is in the air. But that’s not necessarily cause for concern. Throughout Medicare’s 44-year history, change has generally spelled opportunity, despite initial warnings and fear. For example, the standardization of plan designs in the early 1990s forced some carriers out of the market. Today, most agents would agree that seniors are more informed about their plan choices and actually seek out a particular plan type. Insurance sales have flourished, and seniors have choices among an array of private plans and can buy direct or through a licensed insurance agent.

Certainly, not all change is good. There is much angst over the state of the economy and what the government’s health reform plan would mean for agents and consumers alike. But change is upon us, and staying knowledgeable about what’s to come and adapting to it is one of the best things a profes-sional agent can do to prepare for the inevitable.

Dwane McFerrin is director of Medicare solutions for the indepen-

dent marketing organization Senior Market Sales Inc. He can be

reached at [email protected].


A Step-by-Step guide to enSuring CMS ApproveS your MArketing MAteriAlSBy diANE HoLLiE

Your preparations for the 2010 annual enrollment period (AEP) should, by now, be in full swing. This year’s AEP may prove to be one of the most active

since 2005-06, as more and more boomers reach qualifying age. In order to be at the top of your game, you need to have as many marketing materials as possible ready to go at a moment’s notice.

In the past, that might have been easy — draw something up, send it through compliance, and mail it out. But with the Centers for Medicare and Medicaid Services’ (CMS) recently approved changes to the marketing regulations, getting your advertising materials approved might take a little more work than usual. The following step-by-step guide will help ease the marketing development process with CMS. It will be im-portant to have all your marketing materials ready as soon as possible to maximize your sales potential — it’s going to be a busy year.

Know the rules CMS has issued a draft version of Medicare Marketing Guidelines, dated May 15, 2009, for the first time since July 2006. Become familiar with these guidelines. They include all of the new regulations from the Medicare Improvements for Patients and Providers Act (MIPPA), and ad-ditional guidance from CMS. The final version of the Medicare Marketing Guidelines is scheduled to be released soon.

Familiarizing yourself with the CMS Medicare Marketing Guidelines will help prepare your team for training before the AEP begins. The CMS Medicare Marketing Guidelines have incorporated many of the dos and don’ts of selling Medicare Advantage products. The guidelines provide all the information needed to help ensure that your marketing materials are compliant.

develop standardized language Believe it or not, there will be more new disclaimers to add to your marketing materials this year. The following are just a few examples of disclaimers and requirements to be aware of to keep your marketing materials compliant with the latest CMS regulations.• Youmustincludetheplantype(e.g.,HMO,PPO,PFFS,etc.)

usingCMSstandard terminology.Youwillneed todisplaythe plan name and the plan type in this standard format on

all of your marketing materials, including general advertising materials.

• Ifanagent’sphonenumberisincludedinmarketingmaterials,then the plan sponsor’s customer service phone number must also be included. The materials should clearly indicate that calling the number will direct them to a licensed insurance agent and that calling the customer service number will allow them to obtain plan information or to enroll. All requirements in the marketing guidelines related to the customer service phone number must be met (e.g., listing the hours of operation).

• Generaladvertisingmaterialsthatprovidebasicbenefitinformationto generate a response — such as including copayment amounts, monthly premium amounts, or mentioning specific coverage types — must include the following disclaimer: “The benefit information provided is not comprehensive. Additional information should be requested before making a decision about your coverage.”

• ReviewthelatestCMSmarketingguidelinesindetailtomakesure you have included all requirements and disclaimers, new and old. The best way to do this is to develop a best-practices document of all approved disclaimers for your organization with an explanation for how each should be used. Use this document as your checklist. In addition to the disclaimers and requirements, you may also want to standardize other descriptive marketing copy, such as health plan company descriptions and benefit descriptions. This way, once the copy is approved, you don’t have to worry.

Save time and prevent errors: Use templates and carets Use templates when developing marketing materials, as they can cut down on the number of variations you need to develop. “Template material” is any marketing material that includes placeholders for variable data to be filled in at a later time. Using template materials allows you to develop one master document rather than submitting a new docu-ment for approval each time the variable data is changed. Examples of variable elements include date and location information for sales presentations or benefits that may vary between plans, including cost sharing, premiums, and health plan names.

It is important to show CMS how the placeholders will be filled in by inserting the name of the field within carets (e.g.,

hollie, page 10

To view the draft, visit ASJ’s Medicare Resource Center at www.ASJonline.com/Medicare and click on “Marketing.”


11 thingS you need to know About MediCAre pArt dBy NANcy P. MoRiTH

Medicare’s prescription drug coverage — the Part D plan — is a voluntary program for those enrolled in either Medicare Part A or Part B, or those enrolled

in any of the Medicare Advantage plans that don’t already include prescription drug coverage. With the stand-alone Part D plan, beneficiaries will usually pay a monthly drug plan premium, as well as copayments, co-insurance, and possibly a deductible.

Here is a list of 11 important facts about Medicare Part D to help you better counsel your clients. 1. Each Medicare drug plan has a formulary, which is a list of

approved drugs that the plan will cover. A plan can make formulary changes throughout the year as long as the changes are approved by the Centers for Medicare and Medicaid Services (CMS) and are posted on the drug plan’s Web site at least 60 days before the change is effective. Those enrollees already taking a drug that is removed from the formulary may continue to have coverage for the drug through the end of the calendar year. Individuals should make sure their current prescription drugs are included on the formulary of any Medicare drug plan in which they are enrolling.

2. Part D beneficiaries can request that a drug plan make an exception and cover a non-formulary drug under certain circumstances. In the event that such a request is denied, there is an appeals process.

3. Medicare drug plans do not cover nonprescription drugs, prescription vitamins, drugs for weight loss or weight gain, etc. While some plans may cover some excluded drugs, those drug costs will not count toward meeting out-of-pocket limits.

4. The standard Part D plans have an initial annual deduct-ible, which will be $305 in 2010. The plan will then cover 75 percent of the next $2,405 of drug costs, followed by a termination of coverage until total drug costs (including the deductible) have exceeded $6,153.75. At that point, for each prescription, the beneficiary will pay the greater of either 5 percent of the prescription cost or $2.40 for generic medications or $6 for a brand-name drug.

5. Many Medicare drug plans cover much more than the stan-dard plan. Some plans have no deductible, some have no coverage gap, and some have a tiered copayment structure. Medicare drug plans use a network of providers to dispense

medications. All plans must use walk-in pharmacies; some may also offer mail-order options.

6. The average standard Medicare drug plan cost approximately $38 per month in 2009. Variations in the cost of the plans will depend on the drugs covered, copays, deductibles, pharmacies used, etc.

7. The initial enrollment period is the seven-month period that includes the month of eligibility (typically when a benefi-ciary turns 65) and the three months before and after that date.

8. No one can be denied coverage because of income level or for health reasons. However, agents and their clients should be aware that if an eligible individual does not enroll in a Medicare drug plan at the time of initial eligibility, there is a penalty unless the individual had prior creditable prescrip-tion drug coverage with no coverage gap of more than 63 days, if prior coverage ceased.

9. The government-sponsored Web site www.medicare.gov has a program to help each individual choose the appropriate Medicare drug plan, as needs vary depending on several factors.

10. Enrollees can change Medicare drug plans without evidence of insurability during the open enrollment period each year (Nov. 15 to Dec. 31). New coverage becomes effec-tive on Jan. 1 of the year following this period. Each year, agents should review all the plan options with their clients to ensure that the client is still on the best plan for their needs.

11. There are also special election periods when certain events take place. These include moving out of a plan’s service area, losing creditable prescription drug coverage, returning to original Medicare from a Medicare Advantage plan, or any other reason that is not the beneficiary’s fault. If you have a client who has experienced a life-changing event, check with CMS to see if it qualifies for a special election period. If it does, you want to sit down with the client and review all of their Medicare options.

The many components of Medicare’s Part D plan can be difficult to keep track of, but with these 11 tips on hand, you won’t get lost.

Nancy P. Morith is an adjunct faculty member at The American

College. She can be reached at 800-793-4422.


4 StepS to generAting QuAlity MediCAre leAdSBy LiNdSAy R. RESNicK

A s Medicare open enrollment approaches, be prepared to face challenges from every direction. On the con-sumer side, personal economic woes, plan switchers,

and a booming age-in market means you can expect intense shopping. On the sales front, a commoditized set of products, expanded distribution capacity — field agents, call centers, Web, and retail outlets — and membership-hungry health plans create a fierce competitive landscape. Add to the mix a tough Medicare compliance environment, and agents have their work cut out for them.

As a result of these forces, frustrated agents are abandon-ing the Medicare market completely. However, successful agents will sharpen their approach to senior selling, find opportunity, and thrive.

High-performance lead generationEveryone is abuzz about the poor economy, reduced market-ing budgets, and a tough business environment. Don’t be fooled. Competitors are working harder than ever to go after your customers. These market dynamics highlight the need to focus precious lead generation dollars on prospecting for the right people using the best tactics.

Following are the four essential steps to high-performance lead generation, particularly in a sales landscape guided by rigid rules dictating prospect solicitation and selling techniques. 1. Segment. Gathering, analyzing, and interpreting consumer

data will allow you to understand variations among cus-tomer segments and develop a snapshot of your most de-sirable targets. The more you know about these prospects, the more they can turn into qualified leads. Seniors are not a one-size-fits-all market. Capturing core demograph-ics, purchasing habits, and lifestyle attributes provides an important competitive edge. Customer segmentation and profiling can produce higher-quality leads that are tied to actual consumer buying patterns. Narrowing the view of your market will produce messages and tactics that reach profitable prospects — those on which you want to con-tinue to spend lead-generation dollars.

2. differentiate. Creating qualified leads takes salesmanship. Articulate the most compelling features of the products you represent, then link these features to how they benefit your target audience. Say things that the competition isn’t saying. The most common lead-generation mistake you

can make is overemphasis on product details, rules, or instructions. Remember: The marketing material is where a Medicare plan’s value proposition is communicated and sold. Be persuasive and create a call to action, always driv-ing a prospect into your sales pipeline.

3. connect. It takes three to seven prospect touches — through a combination of tactics — to get a qualified lead. The key is to figure out which combination allows you to achieve your goals while still managing your budget. Whether done through direct mail, local TV spots, community grassroots efforts, or online campaigns, direct response lead genera-tion should generate an immediate consumer response. Don’t view individual lead-generation tactics in a vacuum, because each has a specific role in achieving results. Take a multi-tiered approach. For example, among seniors, direct mail is the workhorse, while direct response televi-sion gives response rates a lift. And going forward, don’t ignore the Web. Online lead generation is cost-effective and will play a growing role among competing Medicare plans — almost 60 percent of seniors aged 64 to 72 make online purchases.

4. close. A qualified Medicare lead means the prospect is requesting help as they navigate their purchasing deci-sion. Don’t let it go to waste. Agents in the field (or on the telephone) need to establish themselves as a go-to resource, ready to answer tough questions and provide trusted, consultative guidance as senior prospects weigh their plan choices. When agents are well-trained in their product portfolio and skilled in the art of senior sensitivity, prospects are more likely to make value-based choices. For agents, this translates into an increased closing ratio.

In a Medicare marketplace characterized by cutthroat competi-tion, tight regulation, and abundant product choice, an agent’s success means abiding by the rules of engagement and sharpen-ing your approach to lead generation. And in an environment of product shifts and pricing changes, be assured — prospects will be shopping. There is no greater selling opportunity than a qualified lead looking for help.

Lindsay R. Resnick is chief marketing officer of Gorman Health

Group, a national Medicare advisory firm providing health plans

with technology solutions and consulting services. He can be

reached at 773-372-4961 or [email protected].


*Premiums using Flex-to-Age 85TM. ** Source: “Long-Term Care Support for Family Caregivers” Georgetown University Long Term Care Financing Project, March 2004. For agent use only. Not for consumer distribution.

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hollie, from page 7

<date>), or filling in the placeholder fields with all the vari-ables within the carets (e.g., <$10.00 copay/$15.00 copay>). Template materials will have only one marketing identification number, regardless of the number and combination of vari-able elements.

Although these tips provide a good primer, this is just the beginning. Make sure that you have carefully reviewed the advertising section of the CMS guidelines to guarantee that

your materials will be approved on the first review. Follow-ing these steps can help ensure a smooth transition into the 2010 selling season.

Diane Hollie is a senior consultant at Gorman Health Group, a

national Medicare advisory firm providing health plans technology

solutions and consulting services. She can be reached at 215-499-

1417 or [email protected].

Tips for developing Strong Ads — in Spite of All the RegulationsCMS regulations have you stuck in a creative rut? The following tips can help you build a marketing campaign that effectively builds brand awareness and generates qualified leads.

concept or themes Not all health plans or general agencies mean everything to everyone. What differentiates you in the market? Develop marketing concepts and themes to incorporate into all of your creative pieces. Repeating your message and design elements will help to develop your brand, build recognition in the marketplace, and generate response.

Audience identification Youmayonlyhave30secondstogetyourmessagenoticed.Helpensuretheaudienceislistening.Callouttoyouraudience in your first creative element. Tell the audience that the message is for Medicare beneficiaries living in a particular county or state. This information attracts attention and can cut down on the number of unqualified leads.

What’s in it for me?In every direct mail lead-generation kit or marketing piece, always repeat your most important messages. Why do members enrollinyourhealthplan?(Youneedtoknowthisanswer.)Makesureyourprospectsknowthebenefitsofenrollingin your health plan(s). And, since prospects are not typically reading or listening to advertising messages with their full attention, be sure to repeat the most important message.

Photos: How old should you go? Youraudiencemaybeyoungerthanyouthink.Or,theymayperceivethemselvestobeyoungerthantheyactuallyare.Using photos that depict Medicare beneficiaries who appear very old may miss your target market altogether.

call to action A strong call to action should be included as a part of all marketing and advertising materials in order to generate response. Use a call to action in at least one headline, within the copy, and on the back panels of brochures. Envelopes also provide great opportunities to use a call to action. Remind the prospect that they need to do something.

P.S. one more time: What’s in it for me, and act nowWhen developing direct mail lead-generation kits, self mailers, or enrollment packages, it is important to insert a postscript at the close of a letter. Quickly restate the value proposition and use call-to-action copy. The P.S. is one of the most-read portions of any letter. Do not write a letter without it.

*Premiums using Flex-to-Age 85TM. ** Source: “Long-Term Care Support for Family Caregivers” Georgetown University Long Term Care Financing Project, March 2004. For agent use only. Not for consumer distribution.

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