David Russell, the regional sales director at Empower Brokerage, briefly explains what an ANOC is, what the letter means, and how medicare agents need to explain this to their clients.
In case you didnāt know, an ANOC letter is an annual notice of change that a Medicare beneficiary receives every fall directly from the carrier. Medicare Agents, if you havenāt already, make sure to reach out to your clients and let them know to keep a lookout for these letters. It would be a great talking point in figuring out their needs for the new effective date in January. Notify them of their letters, remind them of AEP, and see if they would like to schedule a Medicare benefit review. This strategy works for your existing clients and is an excellent prospecting strategy!
1. Notify Your Clients That They’ll Soon Receive Their ANOC Letters
Around September and the beginning of October, people are notified of any changes to their Medicare plan. Changes may include coverage, service, and benefit changes, as well as changes to the plan’s cost. These changes will be applied to the following plan year, starting January 1. In some cases, the carrier notifies the client that their plan will no longer be available on the market. About 10 to 15 percent of plans go away every year. This means that people have to find new Medicare plans.
2. Remind Them of the Upcoming AEP
The reason why the ANOC letters are sent out around this time every year is to help people prepare for theĀ Annual Election Period (AEP). It gives them time to decide whether to keep their current plan or switch plans during AEP.
In addition to reminding your clients about AEP, you must inform them about possible changes that can occur at any time of the year. While the ANOC letters do a good job, for the most part, informing Medicare beneficiaries of plan changes, there are exceptions. For instance, a provider network may decide to no longer accept insurance from a particular carrier. If this happens, a client may want to switch plans to continue seeing their doctor. However, a change like this can occur even after the ANOC letters have been sent so policyholders may not find out about this change until AEP has already begun.
3. Ask Them to Schedule a Benefits Review
Life happens, and as medicare agents, this is a constant so your clientās medical needs may have changed over the years. Therefore, you should have them schedule an appointment so that you can review their plan with them. Let them know that they may experience premium increases, as well as benefit changes, which will be listed in the ANOC letter, but also remind them of their options. Many Medicare beneficiaries are interested in receiving dental, vision, and other additional benefits that they may not have, especially if they have traditional Medicare. A personās current medical needs may call for a different health plan. Also, someoneās current financial situation may mean they qualify for a cheaper plan, or they may even be entitled to benefits that they never realized.
A policy review will also give you the opportunity to conduct a needs-based analysis to see if there is any other way you can help your client. Using Empower BrokerageāsĀ Fact Finder, you can determine if your client has any life insurance needs. Additionally, you can let them know that you have the resources and products to help your clientās family and friends. Referred leads are the best leads!
Agents
We hope that this information on ANOC letters was useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether itās through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
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