Mad ancillary short
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Transcript of Mad ancillary short
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MAKING A DIFFERENCE AS A
HEALTH INSURANCE PROFESSIONAL
Providing Uncommon Value
Making a Difference
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Opportunity Is Nowhere
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Opportunity is Now Here
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60% think medical insurance
is a growth opportunity
13% of brokers are taking a
wait and see attitude
11% of brokers will
continue current strategies
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WHAT DO YOU DO?
WHY SHOULD I DO BUSINESS WITH
YOU?
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What is Your Mission?
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IBMS MISSION IS NOT ABOUT
COMPUTERS OR TECHNOLOGY. IT’S
ABOUT ALLOWING ITS INDIVIDUAL
EMPLOYEES TO CREATE WAYS FOR
CUSTOMERS TO SOLVE
OPERATIONAL PROBLEMS
Jim Collins – Author Good to Great
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HOW THE CONSUMER WANTS TO BUY
Carrier via website 25%
Online website 20%
State Run Health website 17%
Carrier via sales center 16%
Agent 12%
Carrier via phone 5%
Remain uninsured 5%
Source: SightLinx 2011
Small Group Purchase Through Broker
41%
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TO MAKE A DIFFERENCE
To transform, change, alter
A significant change in situation
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Making A Difference Is Not:
Getting a lower price
Shopping the market
Providing a spreadsheet
Maintaining an updated census
Returning calls
Enrolling the group
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A Broker Still Focused on Price and Spreadsheets
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DEFINE YOUR ROLE
Single Product Insurance Agent
Health Insurance Agent
Group Insurance Specialist
Consultant
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DEFINING YOUR ROLE
SINGLE PRODUCT INSURANCE AGENT GROUP INSURANCE AGENT
Major medical
Long term care
Medicare Supplement
Disability Income
Dental
Critical Illness
LTC
Life
Accident
Major Medical
Client
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# 1 EMPLOYER CHALLENGE
Rising premiums for group major
medical insurance
Is not the #1
Challenge
It is a Cause
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TYPICAL SOLUTIONS
Raise Deductibles
Increase office visit copayments
Shift premium to employee
How do employees feel about these
changes?
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Why Do Employers Offer Benefits?
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COMPLICATING THE ISSUE
No Wage Increases for the Last 3 to 5
Years
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THE REAL EMPLOYER CHALLENGE
Employee Morale and productivity
And
Employee pressure for increased wages
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STATISTICS 9TH ANNUAL STUDY OF EMPLOYEE BENEFIT TRENDS FROM MET LIFE
1 out of 3 employees are looking to change
jobs within the next 12 months
Employee Loyalty: 2008 – 59% / 2010 –
47%
Believe the employer cares
2008 – 41% / 2010 – 33%
A major unspoken employer objective is
improving morale, productivity and retention
and PRESSURE FOR INCREASED WAGES
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POSITIONING
Causing to fall into line or position
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POSITIONING QUESTIONS
In designing your benefit plan what goals were you trying
to achieve?
In looking at your benefits I can shop each benefit
independently or we can look at all of your benefits within
the context of your benefit budget, which would you
prefer?
If I can expand your benefits within the context of your
benefit budget would that be of interest?
Would you agree that a key component of any cost-saving
strategy should be management of employee perception?
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MAKE A DIFFERENCE WITH ANCILLARY
BENEFITS
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CRITICAL ILLNESS
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Use an employer paid group
critical illness product to
manage employee
perception
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THE STRATEGY
Offset increased deductibles, coinsurance
and copayments with employer-paid Critical
Illness coverage
Premiums - $1.20/$1000
Can issue amounts as low as $1000 -
$5000
Opens the opportunity for employee
voluntary CI buy-up
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PRESENTING THE SOLUTION
Old Plan - $1000
deductible
Renewal Premium: $399
New Plan: $2500
deductible
New Premium: $369
$2000 Critical Illness
Premium: $2.40
Option 2
Old Plan - $1000
deductible
Renewal Premium: $399
New Plan: $2500
deductible
New Premium: $371.40
Includes $2000 Critical
Illness
Option 1
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FOR THE EMPLOYER
Provides a low cost – high perceived value
benefit
Helps manage employee pressure for
increased wages
Takes the sting out of increased deductibles
and copayments
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Making a Difference
In the
Employee’s Life
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STATISTICS
1 out of 3 adults have some form of Cardio
Vascular Disease (50% under age 65)
CVD #1 cause of death
Heart disease is the #3 cause of limitation
of activity
Cancer survival rate: 65.3%
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MEDICAL BANKRUPTCY
CNN 6/5/2009 Report:
2001: 46% were Medical Bankruptcies
2004: 50% were Medical Bankruptcies
2007: 62% were Medical Bankruptcies – 80%
had medical insurance
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MAKING A DIFFERENCE WITH
LIFE INSURANCE
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LIFE INSURANCE FACTS
LIMRA 2010: 75% of Americans agree that life insurance
is the best way to protect their family
30% of households with children would have trouble paying
bills if the primary breadwinner died today
40% more said they could not pay for living expenses if the
primary breadwinner died today
80% of households do not have an insurance agent
USA Today 12/3/2010
Only 44% of households have an individual life policy
30% of households have no life insurance
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GROUP LIFE FACTS
BLS 2010: 62% of full time employees had access
to life insurance at work - 96% participate
1-49 EE: 44% have access / 95% participate
50-99 EE: 57% have access / 95% participate
100-499 EE 71% have access / 96% participate
Businessinsurance.com
VGL: Offered in 23% of companies in 2006
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Would you like an idea to
increase your per enrollment
revenue?
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ADDING LIFE INSURANCE TO GROUP
CLIENTS
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WITH CORE ENROLLMENT
Utilize a Term to Age 100
Consider a Critical Illness Rider
Consider Dual Option
Voluntary Group Term / Term to 100
Do not try to sell the product – get
conceptual buy-in
“After I get each employee enrolled in the group
______ I would like to give them the opportunity
to purchase some additional term life insurance
that they pay for – do you see a problem with
that?”
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DIFFERENTIATE WITH DENTAL
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TRADITIONAL AGENT APPROACH
100% Preventative – no deductible
80% Basic Services
May include Perio / Endo / Oral Surgery
50% Major Services
Basic and Major Subject to $50 annual deductible
May or may not include ortho
May include roll-over
Utilize the spreadsheet
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NON-TRADITIONAL AGENT
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THE INNOVATIVE INSURANCE AGENT
Replace annual deductible with lifetime deductible
Consider per visit copayment
Replace 2 cleanings every 6 months with 2 per year
Instead of partial employer contribution use 100%
employer paid minimal plan design
100% for 2 cleanings 2 times per year with $10 copay
80% for x-ray annually
Sample NC rate – Less than $5 per employee per month
Sells the plan not the spreadsheet
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ADD DISABILITY INCOME
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# EE STD STD EE
Contrib
LTD LTD EE Contrib
1 – 49 23% 30% 18% 10%
50 – 99 34% 25% 29% 6%
100 – 499 43% 17% 36% 9%
Companies Offering Disability Income
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IF YOU DO NOT CHANGE DIRECTION,
YOU MAY END UP WHERE YOU ARE
HEADING
Lao Tzu
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If you don’t
create change,
change will
create you
Unknown
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