What To Do It You Failed to Certify (or just don't want to do it anymore)
Consider selling your Medicare block of business if you are retiring, moving or just slowing down. Gordon Marketing buys a few blocks of business each quarter and at this time of year there is a lot of demand due to agents who have failed AHIP or their carrier certifications and are worried about what happens next.
With 50% of our agents retiring in the next 6 years, we have a lot of inquiries about pricing block of Medicare business.
The short story is 1.5 - 2: this is the number used to value your Medicare renewals.
Medicare Supplements are easier to value because they pay level for 6 years in most states and most people who buy them, keep them. Every year some of your renewals are falling off; whereas Medicare Advantage and Part D renewals are lifetime.
Banks have a terrible track record of understanding the valuations of health and Medicare agencies. The market pays 1.5 almost universally across the nation.
How much is your block worth?
Take your renewals x 2 and that is the top amount the market will pay but you earn less if:
You don't have complete files on your clients.
Your MAPD business is not with a major carrier. Regional plans are all built to sell and plans can exit at any time.
Your Medicare Supplement business is with a small, regional carrier. These types of carriers have a poor history of maintaining their rates.
Your Medicare Supplement business was sold by agents under you who no longer with you and there is not a non-compete agreement barring those agents from contacting the clients you are attempting to sell, or you are in a state that does not enforce non-compete agreements.
What are your plans? If you want to retire and terminate your license, that is more valuable that an agent who wants to continue to sell and potentially compete with the purchaser.
If you don't certify by Nov. 30th your renewals are lost.
Every year we are contacted by agents who failed their annual certification exams or neglected to do them all.
Let us find an agent to service your clients!
We acquire a few blocks of Medicare business or entire agencies each year.
This agent of record transitions varies tremendously by carrier.
Payment can be segmented to spread out seller's tax burden or lump sum.
Please contact Kym Flannery 800-388-8342 x 340 kym@gordonmarketing.com if you have a block of policies focused on Medicare Advantage and Medicare Supplements.
FAX it to 317-776-6780 or email it to Kym
Q: What if I still want to keep selling?
A: You can sell your current block and get a new agent ID and start a new block of business.
Q: Why would I sell for 1.5 times my renewals when I can just wait for the renewals to keep coming in?
A: If you need a lump sum of money, this allows you to pay off debt, get capital to invest in your business, etc without waiting each month for your renewal check.
Q: Can I just sell a part of my business?
A: Yes. Many agents sell a few blocks of renewals so they don't have to continue to recertify for those carriers each year.
Q: I was told that if I failed to certify last year but can certify this year, I'll be able to get my renewals back.
A: This is untrue. Once they are gone, they are gone.
If we do not purchase your block, we will happily connect you with friendly competitors who may have an interest. We also have many agents who are interested in purchasing blocks too.
If we do not purchase your block, we will happily connect you with friendly competitors who may have an interest. We also have many agents who are interested in purchasing blocks too.
