The customer is always right.

healthagent · 07-04-2008, 01:34 PM

well...I'm about out of here - off to see Wall-E - onto dinner then a 4th of July festival. I don't know what I'll drop today but I'd bet it would make more sense to take the money and put it into retirement savings or my son's college fund.

Maybe we should stay home -

...it doesn't always need to make financial sense.

xrac · 07-04-2008, 01:46 PM

Quote:

Originally Posted by healthagent

...and a Honda will always make more financial sense than a Mercedes. What's the point again....

I would be very reluctant to buy a Mercedes or a BMW. If you have a problem they are hard to work, parts are expensive, and parts are hard to get if you are out in the smaller town midwest like I am. Of course people buy them all the time. Lexus is a lot easier to work on, parts aren't as expensive, and parts are more readily available (after all it is a Toyota in a different skin).

Now I love Hondas having owned several. Had a Honda Prelude that was virtually indestructible. But in the end it is what the customer thinks, wants, or can pay for that wins out. Sometimes it is not rhyme or reason.

healthagent · 07-04-2008, 01:50 PM

Last deal I closed - $595 premium - family of three - wanted immediate maternity - chose Aetna

I did indeed run the math and showed him how he was not coming out ahead and clearly saw that pushing the issue was going to mean losing the deal.

He owns a restaurant and the $595 means nothing to him. Sold - Aetna with maternity at $595 since, after eduction, that's what he wanted.

LGilmore · 07-04-2008, 02:19 PM

I always thought it was give the client what they want after you've shown them the options. I've learned over the years being absolutely "right" can mean being absolutely poor. Always leave them an option of "if you find this doesn't work for you, we'll see if we can find another plan." If they want a copay and find later they want an HSA or vica versa...I want to be their agent both times. Should be that simple.

Expat · 07-04-2008, 02:59 PM

[quote=somarco;80069]This not-so-veiled thread seems to be directed to me, and a lot of misinformation and assumptions.

It was not intended to be.

somarco · 07-04-2008, 03:28 PM

Quote:

give the client what they want after you've shown them the options

and

Quote:

"if you find this doesn't work for you, we'll see if we can find another plan."

Agree 100%.

InsuranceBenefitsGroup · 07-05-2008, 04:04 AM

Amen.

robliano · 07-05-2008, 07:41 PM

If after presenting an HDHP as an option, the client says "well, I still prefer co pays" then I think the solution is simple.

Let them buy the co pays!!!!!!!

Don't tell someone that you think an HSA it best, that's implying that you know what's best for them and in turn can be insulting to the client.

Let them buy what they want, this way they'll never be able to hold you responsible and if they don't like it, they know that they can call you for other options because you allowed them to buy, to make the decision.

It's win, win.

theinuranceguy · 07-05-2008, 11:49 PM

What if the client was dead set on a Mega Plan. And, no matter what you said their friend has it and loves it, and they want that plan? What would you do? Would you walk away from a sale?

I am simply playing devils advocate, and am interested in the responses...

(I also know that this would never happen in real life)

healthagent · 07-06-2008, 12:17 AM

Yes...walk away. If one of my clients bottom-lines me and said "listen, you're selling me the Right Start" I would reply "I certainly am not - go to assuranthealth.com and apply."

indmedins · 07-07-2008, 01:25 AM

HSA plans are for self employed only. Really, if they have the money, copay plans are for them or straight 80/20 plans. Post tax money, needs no HSA function.

robliano · 07-07-2008, 03:42 AM

Quote:

Originally Posted by theinuranceguy

What if the client was dead set on a Mega Plan. And, no matter what you said their friend has it and loves it, and they want that plan? What would you do? Would you walk away from a sale?

I am simply playing devils advocate, and am interested in the responses...

(I also know that this would never happen in real life)

I'd tell them do a search on Google and type in Mega Life class action lawsuits or just send them this link.

Possible Class Action Lawsuit against MEGA Life and Health Insurance or Mid-West Life Insurance Company of TN

That should do it.

somarco · 07-07-2008, 08:04 AM

Quote:

HSA plans are for self employed only

How do you figure that?

Most of my HSA clients are NOT self employed.

moonlightandmargaritas · 07-07-2008, 08:09 AM

Quote:

Originally Posted by indmedins

HSA plans are for self employed only. Really, if they have the money, copay plans are for them or straight 80/20 plans.

Ooooh boy -- I can't wait to get in behind this!

indmedins · 07-07-2008, 08:17 AM

Well, the word "only" should not have been entered up there. Bob, I am sure you can help me understand the HSA plan and bank account a bit better. When I think about HSA plans, the plan designs are simple for anyone to grasp, but when I speak to a prospect, I have trouble educating someone who doesn't earn pre-tax dollars to open an HSA bank account. Usually, they don't like the concept of having another bank account and with many plan designs, they are not happy with no first dollar benefits.

I guess what I am getting at is, how can an HSA bank account help someone if they don't earn pre-tax dollars. Isn't keeping money in a regular money market account just as sensible for people earning paychecks?

somarco · 07-07-2008, 08:56 AM

I love the HSA but never had much success until I uncoupled the HDHP from the HSA. Most folks find it overwhelming to grasp the idea of jettisoning copays AND setting up a bank account to handle self pay claims.

Your questions and comments seem to be directed more toward the banking arrangement so let me address that.

Several carriers have relationships with banks that make the process seamless. One check (bank draft) goes to the carrier who splits the premium money and sends the rest on to the bank. If the client permits it, the carrier will also have access to the HSA funds and can directly reimburse the provider once the claim is adjudicated.

Even when you disconnect the bank from the HDHP this still does not have to be a complicated procedure. Several banks target the HSA and have a lot of information and services that make the process simple.

I never force the issue of the HSA, but give them options and let them decide.

The main purpose of the HSA is the tax angle. If they do not have taxable income there is no incentive to fund the HSA.

Funding the HSA with after tax dollars is not as favorable as using a flex plan funded with pre-tax dollars but there are still advantages.

If your client is in a 25% tax bracket they have to earn $1333, pay $333 in taxes, to have $1000 left to pay bills. Keep in mind they can pay medical, dental & vision expenses from their HSA. Most folks won't have $1000 in medical but throw in dental & vision and it is not unusual to have a sizeable chunk of bills that can be funded thru the HSA.

In some ways the HSA is better than a flex plan.

Flex plans allow you to reduce your pay to fund the flex account. The pay reduction means lower FICA taxes but also lower earnings reported to Social Security . . . which can lower your SS benefits. If your employer has a pension plan or matching 401(k) that means a lesser retirement benefit or possible lesser contributions (and match) on the 401(k) side.