Cover those Copays with Hospital Indemnity Plans

Another successful Annual Enrollment Period is in the books. Although the busy season is over, it’s not quite time to sit back and relax, but you already knew that, right?

Now is the time to capitalize on your hard work. Make an effort to follow up with your clients. Find out if they are satisfied with their plans, but maybe just as importantly, see what ancillary products might interest them.

Listen to this article:

Seniors live on fixed incomes and must be prepared for worst-case health scenarios. In a CDC study that covered data from 1980 to 2010, the average hospital stay for those over 65 years old was 5.6 days in 2009-10. In 2010, nearly one in five seniors on Medicare had an inpatient hospital stay. Seniors with one inpatient stay paid on average 50 percent more out-of-pocket than those who had none.

Since low- or $0-premium MA plans typically have high inpatient hospital copays, extended hospital stays can be very expensive for senior population. Just a few days in the hospital could cost a client thousands in out-of-pocket costs!

Help your clients ease the burden of these costs with hospital indemnity plans. Hospital indemnity plans provide a pre-determined benefit that is paid directly to the beneficiary when they are hospitalized. Because the benefit is provided directly to the individual, there aren’t any network restrictions.

These plans provide flexible benefits to cover inpatient hospital copays. Sometimes a sale is as simple as explaining to your clients that they have that option.

What’s more, hospital indemnity plans often pay very generous commissions. Estimates based on averages show that you could increase your income from initial Medicare Advantage business by 45 percent, and replacement Medicare Advantage business by 90 percent, if you wrote every MA client into a hospital indemnity policy as well.

Through a conversation about hospital indemnity, you can continue to build on your relationship and be better prepared for next year. Ask some questions to determine what worked and what didn’t. Don’t just call them; go visit them and have an in-person discussion about their options.

Meeting face-to-face is even more important than you may realize. According to a Forbes Insights survey of 760 business executives conducted in 2009, face-to-face meetings were preferred in cases where the decision-making process is fluid, requiring the give-and-take typically needed when decisions are made. Face-to-face selling simplifies complexity, making big decisions easier.

Note: Ritter does not currently contract for hospital indemnity plans in AK, CA, NH, or NY.

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