for authorized agent use only. not for public use

For authorized agent use only. Not for public use.

Standard Life and Accident Insurance Company



Did you know that you can sell

Medicare Supplement

as easily as you can sell

Medicare Advantage?

Did you know that you can sell

Medicare Supplement

as easily as you can sell

Medicare Advantage?


Did you know that selling

Medicare Supplement

isn’t as complicated

as you think?

Did you know that selling

Medicare Supplement

isn’t as complicated

as you think?

What you need to know

about

Medicare Supplement and

Medicare Advantage

What you need to know

about

Medicare Supplement and

Medicare Advantage


Medicare Supplement vs Medicare Advantage

In 2008, Medicare beneficiaries have two basic options for healthcare coverage; traditional Medicare and supplemental insurance (also known as Medigap policies) and Medicare Advantage policies.



It is important to note that there is a significant difference between Medicare Advantage plans and Medicare Supplement insurance.



The following slides will give you

a point by point product comparison

of Medicare Supplement and

Medicare Advantage.

The following slides will give you

a point by point product comparison

of Medicare Supplement and

Medicare Advantage.


Medicare Supplement plans:

provide coverage for the “gaps” of original Medicare Parts A and B,

were standardized in 1992, are carefully regulated to control

the quality of coverage, and work in conjunction with original

Medicare to provide healthcare coverage.



Medicare Advantage plans: is a new name for Medicare+Choice

(M+C), are private healthcare plans

subsidized by Medicare, may take the form of an:

o HMO (Health Maintenance Organization),

o PFFS (Private Fee-For-Service) plan, or

o PPO (Preferred Provider Organization).




are available through private insurance companies,

12 standardized plans available – Plans A through L,

each plan offers varying levels of coverage,

benefits of each plan are the same from any insurance company across the industry.



Medicare Advantage plans: are available through private

insurance companies, unique to the company

offering them, usually take the form of “Basic”

or “Premium” plans, varying levels of coverage for

each plan, no two plans are alike, companies are encouraged to

compete for pricing and plans.




enrollees may use the doctor or hospital of their choice,

according to the Centers for Medicare and Medicaid Services, 99.7% of physicians and hospitals in the U.S. accept Medicare assignment,

beneficiaries may also travel the United States with little worry of coverage being available.


US Department of Health and Human Services. Data Compendium. Online 2007 Edition of US Department of Health and Human Services. Centers for Medicare and Medicaid Services.

http://www.cms.hhs.gov/DataCompendium/17_2007_Data_Compendium.asp#TopOfPage

http://www.cms.hhs.gov/DataCompendium/17_2007_Data_Compendium.asp#TopOfPage

Medicare Advantage plans:

enrollees may be restricted to the use of certain doctors and hospitals in a network of providers,

depending on the plan, only those approved providers may be covered in the event of treatment.




are guaranteed renewable, as long as premium payments

are made in a timely manner, beneficiaries cannot be denied coverage,

laws are in place to provide beneficiaries the ability to seamlessly enroll with another company, should the company providing the supplemental policy go out of business.




must sign contracts with Medicare to provide covered benefits,

contracts are reviewed annually and are subject to termination,

if the contract is not renewed, the plan may simply disenroll its Medicare beneficiaries,

laws are in place to provide beneficiaries the ability to re-enroll with traditional Medicare and a Medicare Supplement, should the company providing the Medicare Advantage plan go out of business.




Medicare Supplement plans: the 12 plans available vary in

level of coverage and cost, because the plans are

standardized across the industry, the level of coverage is the same from any insurance company across the industry.




may charge little or no initial premiums to their members,

enrollees may frequently be charged co-pays and co-insurance for any number of healthcare treatments.




do not come with built-in prescription drug coverage,

seniors may shop private companies for affordable Medicare Part D Prescription Drug Plans,

different types of Part D plans are available with varying levels of cost and coverage.




many come with prescription drug coverage built-in,

“Basic” plans usually have lower levels of drug coverage,

“Premium” plans usually have higher levels of drug coverage.


There are also differences

in the enrollment periods for

Medicare Supplement and Medicare Advantage Plans

There are also differences

in the enrollment periods for

Medicare Supplement and Medicare Advantage Plans




qualifying clients have the flexibility to enroll or change plans at any time throughout the year.




clients may enroll or change plans only during the two enrollment periods each year

Annual Open Enrollment: November 15 through December 31, and

Special Enrollment:January 1st through March 31


Commission payouts also differ.

Because commissions for

Medicare Supplements are levelized,

you have the potential

to earn significantly more in

renewal commission with traditional Medicare Supplement products.

Commission payouts also differ.

Because commissions for

Medicare Supplements are levelized,

you have the potential

to earn significantly more in

renewal commission with traditional Medicare Supplement products.

*Commission varies by state and contract level. For authorized agent use only. Not for public use.

With a Medicare Supplement, you will

typically make one sale per client,

but earn a healthy renewal commission for a number of years from that one sale.

With a Medicare Supplement, you will

typically make one sale per client,

but earn a healthy renewal commission for a number of years from that one sale.


Commission Payout Example Medicare Supplement

Commission Payout Example Medicare Supplement

Sell just two $1,000 annual premium Medicare

Supplement policies per month for one year

and receive $3,600 in commission*.

Sell just two $1,000 annual premium Medicare

Supplement policies per month for one year

and receive $3,600 in commission*.

You will then receive $150 in commission*

per year for the next five years for each in force

policy. That could mean $3,600 in commission per

year for six years. Some policies pay a service fee

for each in force policy after the sixth year.

You will then receive $150 in commission*

per year for the next five years for each in force

policy. That could mean $3,600 in commission per

year for six years. Some policies pay a service fee

for each in force policy after the sixth year.


Commission Payout Example Medicare Advantage

Commission Payout Example Medicare Advantage

Sell two Medicare Advantage policies per month

for one year and receive $9,600 in commission*.

Sell two Medicare Advantage policies per month

for one year and receive $9,600 in commission*.

After the first year, you will receive approximately

$9.00 per month in commission for each plan

sold

for only one year.

After the first year, you will receive approximately

$9.00 per month in commission for each plan

sold

for only one year.

*Commission varies by company and state. For authorized agent use only. Not for public use.

Commission Payout Comparison* Commission Payout Comparison* $1,000 annual premium Med Supp policy at 15% commission = $150*$1,000 annual premium Med Supp policy at 15% commission = $150*

Year 1: Sell 2 policies / month x 12 months = $3,600

Year 1: Sell 2 policies / month x 12 months = $3,600

Year 2: $3,600 commission from year 1 sales










TOTAL: $21,600 commission from year 1 sales


$400 commission from Med Adv plan sale*$400 commission from Med Adv plan sale*

Year 1: Sell 2 plans / month x 12 months = $9,600

Year 1: Sell 2 plans / month x 12 months = $9,600

Year 2: $18.00 commission / month = $216 from year 1 sales

Year 2: $18.00 commission / month = $216 from year 1 sales

Year 3: $0 commission from year 1 sales











“So, where can I find the answers to common questions about Medicare Supplement

plans, rules and enrollment, etc.?”

“So, where can I find the answers to common questions about Medicare Supplement

plans, rules and enrollment, etc.?”


You can find the answers to any questions you may have about Medicare Supplement plans, rules, enrollment, etc. in the Guide to Health Insurance for People with Medicare, or the company’s underwriting guide.

Medicare Supplement


“What if I have reviewed this presentation and still have questions?”

“What if I have reviewed this presentation and still have questions?”


Medicare Supplement

Standard Life and Accident Insurance Company has highly trained Marketing Specialists available to give you personalized service from 8:00 am – 4:30 pm CT, Monday through Friday. They can help you with any questions you may have regarding Medicare Supplements.

Call: 888.290.1085 or Email: [email protected]


The following slides will give you a more detailed overview of the

Federal Medicare program.

The following slides will give you a more detailed overview of the

Federal Medicare program.


Federal Medicare Supplement Overview

Medicare is the nation’s largest health insurance program, covering approximately 42 million Americans

Administered by the Centers for Medicare & Medicaid Services (CMS)

The Medicare Program has four parts:o Part A – Hospital Insuranceo Part B – Medical Insuranceo Part C – Medicare Advantage Planso Part D – Prescription Drug Insurance


Federal Medicare Supplement Overview: Part A

Hospital Insurance: Pays benefits for:o Inpatient hospital careo Skilled Nursing Facility Careo Home Health Careo Hospice Care

No Premiums

Deductibles and co-insurances do apply per length of stay


Federal Medicare Supplement Overview: Part B

Medical Insurance: Pays benefits for:o Physician serviceso Outpatient hospital careo Outpatient mental health serviceso Laboratory feeso Durable Medical Equipmento Blood glucose meters, test strips and

lancets o Some drugs in certain caseso Outpatient Physical/Occupational/

Speech therapy

Voluntary Benefit

Premium for 2008 is $96.40*

*May be higher dependent on your tax return.For authorized agent use only. Not for public use.

Federal Medicare Supplement Cost “Gaps” in Original Medicare

*May be higher dependent on your tax return.

Part B premium $96.40*/month

$1,024 deductible/hospital stay days 1-60

$256/day coinsurance for hospital days 61-90

$512/day coinsurance for hospital days 90+(60-day maximum over lifetime)

All costs over 150 days

All costs first 3 pints blood in inpatient stay

$128/day for days 21-100 in skilled nursing facility

All costs past 100 days in skilled nursing facility

$135 annual Part B deductible

20% coinsurance for Medicare approved cost of physician services

50% of cost for outpatient mental health services

All cost first 3 pints of blood as outpatient, then 20% of cost

20% coinsurance for other medical services


The Standard Life and Accident Insurance Company

Medicare Supplement

Field Underwriting

Manual


Medicare Supplement

Field Underwriting

Manual


The underwriting manual

is designed in a simple and

easy to understand format,

and provides you with the

procedures for completing

and submitting an application

for both the traditional Medicare

Supplement and Medicare

SELECT health insurance

policies.

Medicare Supplement Field Underwriting Manual


The following slides giveexamples of the type of detailed information you will find in the

Medicare Supplement Field Underwriting Manual.

The following slides giveexamples of the type of detailed information you will find in the

Medicare Supplement Field Underwriting Manual.


Under Completing the Application, each section of the application is broken down and each question thoroughly explained.

For example, Page 5 of the manual contains an explanation of Section B, Question 4:


“Question 4: Indicate whether the application is for a new policy or for reinstatement. Please indicate the plan being applied for by filling in the proper letter designation and whether the client wants the traditional Medicare Supplement form or the Medicare SELECT version. The application also asks for the gender type and whether the Applicant has used tobacco products. Please check the appropriate boxes.”


The Special Enrollment States section, contains current state rules for open enrollment. For example:


CALIFORNIA

All standardized Medicare Supplement Plans offered by SLAICO are available to California Medicare Supplement policy owners during an annual open enrollment period for a period of 30 days after their birthday. During this time period an insured is eligible to apply for any carrier’s policy providing the same or lesser benefits as their current coverage.

All standardized Medicare Supplement Plans offered by SLAICO are available on an open enrollment basis to California residents who are under age 65 and are disabled Medicare beneficiaries and who became covered by Part B due to disability during the past six months. This eligibility does not apply if the individual qualified by reason of End Stage Renal Disease. Special premium rates will be used for these individuals who are under age 65. Refer to the outline of coverage.


The Unacceptable Health

Conditions Section gives an

extensive list of reasons and

unacceptable medical conditions.

There is no need to guess

whether or not your client will be

denied coverage.





Pocket-sized Easy

Medicare Supplement

Underwriting Guide


Pocket-sized Easy

Medicare Supplement

Underwriting Guide

Medicare Supplement Pocket-sized Field Underwriting Guide

The purpose of this handy pocket-sized guide is to make the underwriting process as easy as possible. You know where you and your Applicant stand with Standard Life and Accident Insurance Company (SLAICO) from start to finish.

Medicare Supplement Pocket-sized Field Underwriting Guide

The pocket-sized field underwriting guide puts vital information at-a-glance, such as the weight chart, application submission guidelines and state specific special enrollment information.

Standard Life and Accident Insurance Company has a

Medicare Supplement plan to fit most every client’s budget

and needs.

Standard Life and Accident Insurance Company has a

Medicare Supplement plan to fit most every client’s budget

and needs.


The following slides will introduce you to some of our most popular

Medicare Supplement plans – E, F, F(HD) and G

The following slides will introduce you to some of our most popular

Medicare Supplement plans – E, F, F(HD) and G


Some of the Plan E benefitsinclude:

Medicare Supplement Outline of Coverage – Plan E

* See Outline of Coverage or Policy for details.

Part A Deductible coverage*

Coinsurance payment coverage for Medicare approved stays in a Skilled Nursing Facility for days 21 through 100*

Foreign Travel emergency care services not covered by Medicare*


In addition, Plan E benefits include the first $120* each calendar year of preventive medical care not covered by Medicare such as some annual physical and preventive tests and services administered or ordered by your doctor.**

Medicare Supplement Outline of Coverage – Plan E

** See Outline of Coverage or Policy for details.

* Benefit subject to change.


Some of the Plan F and F(HD) benefits include:

Medicare Supplement Outline of Coverage – Plans F and F(HD)



Part B Deductible coverage*

100% coverage of Part B Excess charges above Medicare approved amounts*



In addition:



Medicare Supplement Outline of Coverage – Plans F and F(HD)



In 2008, the deductible for High Deductible Plan F $1,900. However, the premium for these plans are a fourth, sometimes even a fifth of the cost of other Medicare Supplement plans, depending on the state and other varying factors

Medicare Supplement Outline of Coverage – Plan F(HD)


Some of the Plan G benefitsinclude:

Medicare Supplement Outline of Coverage – Plan G



80% coverage of Part B Excess charges above Medicare approved amounts*



In addition:

Medicare Supplement Outline of Coverage – Plan G



At-Home Recovery services not covered by Medicare, up to $40 per visit and up to $1,600 per calendar year*



Standard Life and Accident

Insurance Company

is a hands on company.

Standard Life and Accident

Insurance Company

is a hands on company.


We take pride in offering you all

the tools necessary to make selling

Medicare Supplement plans

simple and easy.

We take pride in offering you all

the tools necessary to make selling

Medicare Supplement plans

simple and easy.


Call us today

to find out how easy it is for you

to get started.

Call us today

to find out how easy it is for you

to get started.



888.290.1085


[email protected]@slaico.com

for authorized agent use only. not for public use

Documents

public use

medicare supplement

medicare beneficiaries

medicare choice

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