How To Interview Your Medicare Agent: Avoid Costly Mistakes

Three questions to ask your agent before signing up for Medicare insurance.Photo byAmerican Association for Medicare Supplement Insurance

Jesse Slome is director of the American Association for Medicare Supplement Insurance (AAMSI) a national advocacy organization that supports insurance professionals who market Medicare solutions. This post may include affiliate links. If you purchase anything through these links neither the author nor the Association earn a commission. However, agents who sell Medicare plans do.

About 150,000 insurance agents are able to sell Medicare plans according to the American Association for Medicare Supplement Insurance. And they all hope you'll buy from them.

That's especially true during Medicare's Annual Enrollment Period (AEP). The peak selling season for Medicare Advantage and prescription drug plans begins October 15th.

Finding the best coverage can begin by knowing the questions to ask before you even start hearing about plan features, benefits and costs.

The first thing to know is that there are various types of Medicare agents out there. They all have to meet the same licensing standards. But that can be where the similarity ends.

There are agents who work specifically for one particular plan. They can only really discuss and sell that particular plan. Other agents are employed by call centers. Generally, they may be able to discuss multiple plans. But there could be a particular plan they are asked to favor.

Finally, there are brokers. Brokers are insurance agents who typically are independent. They generally are appointed to sell plans from multiple insurers.

It's important to understand that one is not necessarily better than another. An agent selling only one plan could very well be selling the best plan available for you. But it might not be. Thus, asking some simple questions at the onset can help you get better coverage and avoid some costly mistakes.

#1. Do you sell Medicare Advantage as well as Medigap plans? Some agents offer only one. Others do both. There are pros and cons to both types of Medicare plans. You just want to know whether the agent you are speaking with has a particular bias.

#2. How many Medicare insurance companies are you appointed with? The word appointed is insurance industry jargon defining if the agent is able to sell their policy. Someone appointed with one insurer can only sell you plans from that company.

#3. How many years have you been selling Medicare plans? Experience can matter when it comes to knowing things like plan satisfaction, plan changes and a history of premium rate increases. That said a new agent may be hungrier to help you. But it is important information to know.

A good Medicare agent or broker should understand why you are asking these questions. He or she should respect your inquiry and view you as a serious prospective buyer.

And, because agents don't earn anything until you agree to sign-up for a particular plan, they desire serious buyers. Ask questions and they'll know they have one on the line or sitting across from them.

Jesse Slome frequently shares information regarding smarter planning for seniors. To receive the latest tips and tactics, follow Slome on Newsbreak.