Adding a Hospital Indemnity Plan to the High Deductible G Plan

When speaking with one of your new-to-Medicare clients, it is such a relief when they understand how the Medicare Advantage and Medicare Supplements work. It can be a challenge, for sure! So why would we want to give more options within the Medicare Supplement plan by looking at the different plan letters and adding the Hospital Indemnity Plan (HIP) to fill in the gaps? It took me a while to understand the concept, as I am a creature of habit. But this combo made sense to me, and I wanted to share.

You should take the extra time to discuss this scenario with your client, and here is how it can benefit both of you! 

Benefits for your client:

• You are considering your client’s cash flow concerns.
• The client has a lower premium on their Medicare supplement plan, which will allow them to hang on to it longer as the increase in premiums starts at a lower price point.
• Enroll in the HIP during clients’ Turning 65 Guaranteed Issue and keep this plan when your client needs to move to a Medicare Advantage due to premium increases of the Medicare Supplements.
• HIP covers benefits such as skilled nursing and cancer that our Medicare plans lack in needed benefits.
• Ability to use the cash as they need, not given directly to the medical services rendered.

Benefit for You as an Agent:

• Retain your clients as they have more product
• Another revenue source for your commissions
• Knowing you have provided your clients with the coverage they need. 

By looking at the High Deductible G Plan (HGD)*, a client would receive all the benefits of this plan with a deductible of $2800, which brings the Supplement Premium to less than a quarter of the cost of the most commonly written Plan G.

Adding the benefit-rich HIP of around $75 offers the client coverage to help with the deductible and cancer and skilled nursing. Historically, HIP plans have not had premium increases.

*Check to make sure the HDG plan is available in your state.

PRO TIPS:

1. Make a Cheat Sheet to show clients how this covers their needs visually. Having this cheat sheet available at all of your appointments will become second nature as part of your workflow.
2. Ensure your client knows they already want a Medicare Supplement, so you do not need to bounce back and forth while discussing the advantages and disadvantages of the Medicare Advantage and the Medicare Supplement plans.

Adding the right Medicare Supplement and Hospital Indemnity products to your portfolio doesn’t have to be confusing. At UIG, we will help you pick the right products for your specific geographic location. We’ll get you appointed so you can be well on your way to providing more benefit to your clients and your bottom line. Reach out to our team to get started! 

By: Libby Elliott, Broker Sales Specialist, Licensed Insurance Agent Specializing in Senior Products