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Newsletter Archives > How To Cross-Prospect Medicare Supplement Clients for LTC


21 Sep 2007

How To Cross-Prospect Medicare Supplement Clients for LTC
For Agents Information Only

One of the best ways to prospect for LTC is with your current Medicare Supplement clients.
People have a legitimate need for LTC.  Actually a HUGE need but:
  • Either they are unaware of the chances of the potential catastrophe they are facing...
  • Or they think that Medicare will pay for the nursing home and leave it at that!
One thing you can do is to go back to your current Medicare Supplement clients for "review."  Point out the skilled nursing benefits Medicare and supplement cover and what they don't (like home health care and intermediate care in the nursing home).  It's on the Medicare Supplement spread sheet - if you need one let me know and I will send it to you.

First and foremost, make them aware of the chances they are facing of being pounded with a $1Million or more claim:

A Huge Potential Risk
And A Little Common Sense

If there was a 60-75% chance of rain would you bring your umbrella when you went shopping?
If you had a 60-75% chance of winning lotto would you play?
Ok Then, if you have a 60-75% chance of a $1Million claim, shouldn't you get coverage?

Basically, after age 65, people have a 60% chance of needing long-term health care and for a couple of that age there's a 75% chance one of them will need long-term health care.  Read the details here: http://www.lrc-ga.com/ltci.html

Ok, so most people will realize they need to protect themselves from a 60-75% chance of a claim.  If not, ask them if there was a 60-75% chance of rain whether or not they would bring their umbrella when they went shopping...............Of course they would!!!!

Here's how the skilled nursing facility benefits are listed on most spread sheets:

Skilled Nursing Facility

Days 1-20
Medicare Pays:
All "Eligible" Expenses / You Pay: Nothing

Days 21-100
Medicare Pays: All Remaining "Eligible" Expenses  / You Pay: $124/Day (2007)
 
Days 101+
Medicare Pays: Nothing / You Pay: All Costs

A good Medicare Supplement will pay the $124/Day co-pay in the skilled nursing facility so most people with a Medicare Supplement assume that they are "Covered" for the first 100 days in a nursing home.  People hear what they want to hear.........

The Truth!

Here's something that people don't hear or at least fully understand, including agents and brokers.  Medicare only pays for Skilled (or highest level) services in Medicare approved facilities.  What does this mean?  Well, many times people enter the nursing facility at the "Skilled" level and are then transferred to an intermediate level a short time later.  In fact, this happened to my grandfather, my father's father.  When this happens, both Medicare and the Medicare Supplement STOP PAYING.....The only GUARANTEE of coverage is to have a comprehensive Long Term Care Policy.

The other thing people forget is that they may need care at home, not in a facility.  Then what?  Again a comprehensive LTC plan is needed.
  • Go back to your current clients age 65 and up (whether or not they have a Medicare Supplement).  Make them aware of the chances they are facing.  Make them aware that if they are planning to have Medicare pay for the first 100 days of the nursing home they are GAMBLING.
  • Ask them if there was a 60-75% chance of rain would they bring their umbrella or not!!
  • Ask them if they had a 60-75% chance of winning lotto would they play?
  • Let them know that you have 2 products that will protect them.  Long-Term-Care and Medicare-Supplements we have most of the major carriers - give us a call or email us with your case details or request a quote: http://www.lrc-ga.com/quotes.html
  • By the way, you as an agent/broker, have the same chances as anyone else of needing care.  But!!  You have the ability to get it a discounted rate!  If you have it yourself, you'll find it much easier to talk to your prospects and clients about it..

Wishing you a great weekend!

Best,

Todd

Todd Concklin