Before agents can make a sale, they need to find potential clients. In order to do this in a compliant way, you must follow the permission to contact rules.
What is Permission to Contact
Before we discuss the rules that apply to permission to contact, we will explain what permission to contact or (PTC) is.
Because there are agents who have pressured Medicare beneficiaries into purchasing a plan that may not fit their needs, these guidelines were put in place. They protect beneficiaries from receiving unsolicited communications from agents trying to sell them healthcare products. When a Medicare agent wants to contact potential clients, they need to follow the CMS marketing and communications guidelines.
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In order for an agent to be compliant and receive permission to contact, the potential client must initiate contact. The beneficiary must grant the agent permission before the agent contacts them. Agents should document the PTC. Please be aware, agents do not need a PTC to contact current Medicare clients.
When to get a PTC
Any time an agent plans to speak with a potential Medicare client, they need to obtain a PTC. This is very important if you will discuss Medicare Advantage or PDP plans. If you plan to discuss a Medicare Supplement plan, you will most likely need to discuss a PDP plan as well. Although CMS rules do not apply to Medicare Supplements, the TCPA guidelines do apply. That is why, it is important to get PTC whenever you plan to contact a potential client for any sales meeting.
Please note; you do not need a PTC to send out unsolicited emails to potential clients. All emails must contain an option to opt-out and the email must not contain information that would classify it as marketing material. That is anything with specific benefits or plan information that could sway a potential client towards a specific plan choice. All email communications must follow the CAN SPAM Act laws.
How to collect PTC
Now that you know you need a PTC, you need to know how to get it. Take a look at some guidelines below for what you can and cannot do.
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Some things you can do:
- Have plenty business cards with your contact information available at all events you attend. That way if anyone wants to contact you, they will be able to. Current clients may ask for your card to give to their friends or family if they need advice.
- If you have a website, make sure there is a contact form on it so clients can request that you contact them.
- When you send out emails, be sure to include your contact information as well as a contact form if they want more information or assistance.
- Business reply cards are also a way to obtain PTC. If the prospect wants more information, they just fill out the card and send it back to you.
Some things you cannot do:
- Agents are not permitted to go door-to-door looking for clients. If you do not have a scheduled appointment, you cannot go to someone’s home.
- Do not initiate a direct message to a prospect through any social media platform.
- Never cold call prospects to offer them either a Medicare Advantage or PDP plan.
- Do not contact a friend or relative of a current client without their permission. Each individual needs to grant PTC.
After you have the PTC, it is good for up to 12 months. If you have not contacted the prospect within that time frame, you will need another PTC before attempting to contact them.
What’s the difference between a PTC and a Scope of Appointment
Although PTC and a Scope of Appointment serve a similar purpose, they are not the same. Both procedures are in place to protect Medicare beneficiaries from agents who use unfair sales practices. Once you have PTC, you can contact the prospect and at that point, you can collect a Scope of Appointment. The SOA is a form that specifies what healthcare products the beneficiary wants to discuss during their appointment with the agent. Learn the rules for SOAs.