According to the California Department of Health Care Services (DHCS), California had 6.5 million Medicare beneficiaries in 2021. More than two-thirds (68.1%) were ages 65-79; 11.3% were under age 65; and more than one-fifth (20.6%) were ages 80 or older.
KFF, formerly the Kaiser Family Foundation, says that number had grown to 6,889,905 Medicare beneficiaries in the Golden State by 2024.
Nevada Medicare beneficiaries in 2024 were 597,344. Of these, nearly 77% (459,570) were enrolled in Part D (prescription drug) coverage.
Senior Insurance Market
More Growth Ahead
Between 2022 and 2050, the senior market will nearly double – going from 48 million to 88 million nationwide. Through 2040, the 65 and older population will grow from 17% to 22%.
With so much growth, sales opportunities in the senior market are substantial. You can take advantage by expanding into Medicare Advantage, Medicare supplement/Medigap, and Medicare Prescription Drug Plan sales.
Most Medicare beneficiaries today are choosing Medicare Advantage over traditional Medicare. In 2024, about 32.8 million enrolled in a Medicare Advantage plan. That represents more than half (54%) of the eligible Medicare population. Twenty-two million seniors have a standalone Prescription Drug Plan (Plan D) and more than 14 million have a Medigap supplemental health plan.
Selecting a plan is not easy, though. In 2024, on average, Medicare-eligible plan enrollees had access to 43 Medicare Advantage plans from nine different insurers. That’s where you could come in. Millions of Medicare beneficiaries are looking for help when making their annual plan selection.
Potential New Income
According to information from the National Contracting Center (NCC), a Medicare-focused Field Marketing Organization (FMO), commissions on Medicare Supplement, Medicare Advantage, and Plan D Rx plans can help brokers build a lasting source of income. For Medicare Supplements, NCC says the average commission rate is 22% with a 12-month advance. Renewal commissions, which average about half of first-year commission, can last for years.
Medicare Advantage commissions for most U.S. states are $601 for persons new to Medicare and $301 for renewals. Commissions are often higher in California. Renewal commissions usually stay level for the life of the policy.
Prescription Drug Plan commissions in 2023 were $92 for those new to Medicare and $46 for renewals. Renewal commissions usually stay level for the life of the policy.
Unlike most insurance, commissions for Medicare Advantage and Plan D sales are established by the U.S. government. You earn the same commission regardless of which carrier’s products you sell. Again, according to NCC, between 2017 and 2023, the commission for sales to those new to Medicare, increased from $443 to $601; renewal commission increased from $222 to $301. Mathematically, that represents a 36% increase in six years – something you’re unlikely to see from other business you may be writing.
Plus, there are opportunities available for ancillary sales. Whether it’s hospital indemnity, Long Term Care (LTC), or specialty coverage (like cancer, heart attack, or stroke), your senior insurance clients can help you earn additional commissions from other sales – and referrals.
Licensing and State Requirements
To sell Medicare Advantage and related products in California and Nevada, you need to meet specific requirements, including licensing, training, and adherence to the Centers for Medicare & Medicaid Services (CMS) sales guidelines. For specific California licensing information, visit the California Department of Insurance website. Nevada brokers can learn about Silver State license types and requirements on the Nevade Division of Insurance website.
Group Coverage as Creditable vs. Non-Creditable Rx Coverage
If you currently sell Group Health Insurance to your business customers, an annual responsibility of your clients is sharing information with their Medicare-eligible employees concerning whether their group health plans include Rx coverage that is creditable or non-creditable. The evaluation is to determine whether your client’s group prescription drug coverage is equivalent to or better than Medicare’s standard Part D coverage. Is it expected to pay out as least as much as Medicare’s standard plan (i.e., whether it is creditable or if it is not expected to be as good as Medicare).
Additional information on “Creditable Coverage” is available on the CMS website, which also offers downloadable forms and related links. Another good resource on creditable vs. non-creditable coverage is Paul Roberts’s Compliance column, Annual Employer Reporting Requirements and Upcoming Changes: Medicare Part D Notices Explained, available in Word & Brown’s Newsroom.
Help With Medicare Supplement and IFP Sales
You may be surprised to learn that Word & Brown can help you with Medicare Supplement and Individual & Family Plan (IFP) business. Our IFP Sales Representative, Duncan Shader, has 30+ years of experience at Word & Brown.
Duncan can introduce you to our IFP and Medicare Supplement carrier partners in California: Anthem Blue Cross, Blue Shield of California, and Health Net. You can also find useful IFP and Medicare forms online in the W&B Insurance Forms Library.
For Medicare Advantage and Medicare Part D prescription drug plans, National General may be able to help. That company bought a block of Medicare Advantage business and HealthCompare from The Word & Brown Companies several years ago. The National General phone number is (888) 376-3300 (select option 1).
To get started today with IFP and Medicare Supplement sales, send an email to dshader@wordandbrown.com or give him a call at 714.567.4657.
