Every single day, more than 10,000 Americans celebrate their 65th birthday. By 2030, all 73 million Baby Boomers will have reached that milestone.
In other words, the Medicare market is booming, and the demand for Medicare sales agents is soaring. Medicare sales agents work with seniors to help them choose and enroll in Medicare Advantage and Medicare Supplement (Medigap) insurance plans.
People who enjoy teaching, helping others, and making their own schedules usually do very well as Medicare sales agents. Since agents earn current and residual income, you can continue receiving commissions for years by helping seniors today.
Many agents enter the business part-time and then make it their new career after experiencing how fulfilling and lucrative it can be. In fact, the founder of PTT Financial was initially a high school band teacher who sold Medicare as a “side gig” until he discovered how much he could earn.
Becoming a Medicare sales agent is not hard, but there is a process. Here’s how you can become a part of this personally and professionally rewarding industry.
Start with Pre-Licensing Education
You must be a licensed health insurance agent to sell any Medicare plan. Some states allow online courses, while others require in-person training. Cost ranges from less than $100 to more than $400, depending on your state’s requirements, the vendor selected, and whether online or in-person.
(If you live in Texas, PTT Financial recommends the Texas Insurance Training Academy course, usually $299 but ask PTT about available discounts.)
For Medicare Supplement (Medigap) policies, that is enough. To sell Medicare Advantage plans, you must also get a Medicare + Fraud, Waste, and Abuse (MFWA) certification. AHIP (American’s Health Insurance Plans) is the most widely recognized MFWA training and certification provider.
Take the Licensing Exams
Check with your state insurance department to determine the options available in your state for taking the health insurance licensing exams. To pass, you’ll need a score of 70% or higher (you can re-take the exam up to five times over a year if required). Exam fees vary from state to state, but most fall between $50-$75.
You will need a resident license to sell in your state and a non-resident license in other states. Visit the National Insurance Producer Registry (NIPR) for more information.
Medicare Advantage Certification
AHIP offers its MFWA training and certification online. This certification is required by the Centers for Medicare and Medicaid Services (CMS), the federal agency that manages Medicare. The AHIP course and exam costs $175. (Some carriers offer a $50 discount on the AHIP fee in exchange for agreeing to market their products.)
Decide What You Want to Sell
To be a Medicare sales agent, you must be prepared to offer the following products at a minimum:
- Medicare Advantage (Medicare Parts C and D)
- Medicare Supplement (Medigap)
- Prescription Drug Plan (to pair with the Medicare Supplement)
To help each customer get exactly what they need (as well as to maximize their income potential), many agents use a cross-selling needs assessment with their customers. To do so, they should be prepared to offer additional products that serve the senior market, including:
- Dental, Vision, and Hearing Insurance
- Life Insurance, including Final Expense plans
- Long- and Short-Term Care Insurance
- Cancer Insurance
If you work through an agency/FMO such as PTT Financial / Medicare Educators, you’ll receive comprehensive support including free training, access to carriers/markets and quoting platforms.
How Much You Can Earn
Medicare sales agents in the US make an average of $78,000 annually, or about $40 an hour. Experienced agents in the senior market can expect to earn over $100,000, including current and residual commissions. Those offering six or more different insurance products often earn more than $200,000 a year.
It’s easy see how quickly it adds up. Medicare Advantage plans pay independent agents a commission as high as $573 for a new enrollee and $287 for each renewal. Prescription Drug Plans pay $87 for new enrollees and $44 for renewals. Medicare Supplements pay between 18-24% commission on the total premium. Other products have varying commission rates.
Agents with the highest incomes say their top source of leads is referrals from friends, previous customers, and acquaintances gained through their church, club memberships, and similar community participation. Positioning yourself in your professional and social circles as the go-to person for all things Medicare can set you up for tremendous success.
Get More Information
If you love helping people, we think you’ll love working with PTT Financial and their sister company, Medicare Educators as a Medicare sales agent. No insurance experience is necessary. Download our Careers Information Sheet today to get started, or call PTT Financial at (844) 277-5028.