Over the past few weeks I’ve received hundreds of emails from senior insurance advisors all over the country with questions about recent sea changes in Medicare. A quick review: Yes, in a few years first-dollar payment Medicare Supplements (like the popular Plan F) will no longer be available to consumers. Continuing a long-term trend, some of the biggest carriers in the industry have been acquired by other carriers. Some agents have also gotten much smaller renewal checks due to unexpected charge-backs dating all the way back to 2008.

Have you been wondering about any of these changes?

People might have hardly noticed if just one of these things happened, but in the dynamic environment we’re working in today this rapid succession of events can makes some agents uneasy, even make them question whether this is still the right industry for them.  I understand that change brings uncertainty, but I also remember an old saying my father used all the time:

“The more things change, the more they stay the same.”

I’ve been in this industry since 1996, and I can tell you that quote holds true.  I’ve seen great waves of change, but I’ve also noticed that opportunity has continued to grow. That’s why, as with all change that’s beyond our control, we must do two fundamental things:

1. Understand the changes

As agents in an industry that blends the private and governmental sectors, we have to stay abreast of ongoing developments.  Most of these changes are a result of people (of vastly differing opinions, mind you!) working to keep the system operational and fiscally sound for the next decade. Based on the U.S. Census Bureau’s 2008 National Population Projection, 75 million people in this country will be over the age of  65 by 2030.  The actions being taken by private- and public-sector leaders are an attempt to to stay ahead of that growth.

I’m often asked, “Is Medicare going away?” My answer is “Hardly!” Companies buying other companies for billions of dollars reflects a bullish view of Medicare’s future. Who would pay such large amounts for something that will go away?

Yes, products will change.  As history has demonstrated, new products will take the place of ones that are being eliminated.  Consumer demand and corporate profit opportunity will necessitate innovation.  Just look at the growth of Hospital Indemnity products when Medicare Advantage companies increased inpatient copays.  That change made an opportunity for beneficiaries to purchase more comprehensive coverage and allowed agents serving them to earn additional commission.

The future will be no different with Medicare Supplements. After all, “The more things change …”

2. Adapt to these changes

After the initial shock wears off, we all have to evolve our business to maximize the new opportunity that has been created.  There are webinars, seminars and programs you can tap into that will help you make money in the changing environment.  This is not a time to engage in negative water cooler discussions with agents who have already made up their minds.  Partner with organizations that can help you make the most of these changes and be willing to roll with the punches!

That’s why every email I wrote this past week boiled down to these two simple words: Understand and adapt.