Insurance Agent Forum

[Peter Ryan]

I couldn't agree more, the most basic rule in marketing is find out what your client wants and give it to them.

There's no virtue in pushing products 'we' think are best, if the client doesn't want them.

Give them what they want.

[somarco]

type 2 diabetic

Aetna is the only major carrier I know that will take a diabetic. In that case, price is not the concern.

banks are from a quick glance, the monthly fee and the minimum deposit requirement.

HSA's are generally not a money maker for banks, so min deposits and fee's are to be expected. Some carrier-bank affiliations waive or reduce the fees and minimums usually are quite low.

As for re-educating the client, I can probably count on one hand the number of people who have had issues with the no-copay concept and have had to be reprogrammed or moved back to a copay plan.

Doc visits are usually $60 or less (a bit higher if a specialist). Lab work with most carriers is not included in the doc copay, or if it is, you have to find a doc with purple hair and promise to visit only on Wednesday when it is raining to get the lab covered. Only if pressed, do I point out the plans with labs included in the copay. Just complicates the issue when they go to a doc and then are billed separately for the lab which is sometimes, but not always, discounted and usually applied to the deductible.

Most folks think they know how to use their plan, copay or not, but they are mistaken.

That is why I field questions (mostly from non-clients) on why they had to pay extra for certain charges, and why there were no discounts. They don't know to ask the doc to use a par lab and the specimen goes to a lab that is "friendly" with the doc. They have surgery only to find the gas passer is non-par and they owe a bunch of money over the allowable charge. They go to the ER only to find the doc who treated them is not an employee of the hospital and not in their network.

The list is endless.

When too many details are given to a prospective client their head blows up. I like to keep it very simple, which leads to fewer surprises and misunderstandings.

[Soaringagent]

This is a great thread. It's important to always be reminded to give them what the clients want. Always be listening

[CT Insure Guy]

Originally Posted by Expat

I can only reiterate, the specific situation rules.
If an HSA fits, sell it, if not, don't

I can't say I totally agree with this, though my HSA block of business is certainly not anywhere near more than maybe 30-35% of my total case count (though I wish it was more) and I do not "force" clients into HSA plans, instead I "educate" them:

Isn't the very goal of any education to learn something you don't already know? Well, most clients only know co-pay or simple major medical plans and, because of that fact, think it's what's best for them when often times it's actually the opposite. When I discuss the advantages of leveraging coverage to higher end claims and not paying a premium to have your Insurance carrier give you co-pays, which these days are not that much better than what a doc will charge a cash paying customer, many times a light bulb goes off in their head and it finally hits them. "Ahh, so this is like my Auto Insurance? I take a high deductible because I don't crash my car a lot so it lowers my premium, etc. Plus, my Geico certainly doesn't pay for oil changes and tune ups (and if they did my premium would be FAR higher) so it's just for major problems. Gotcha."

It isn't always this easy but by educating them as to the benefits of moving the risk to the higher end and not insuring against low-end risk you're helping your clients, not hurting them. When you then begin explaining the additional benefit of tax savings it almost becomes a no-brainer for any average client. How can any reputable agent not be telling EVERY client about the benefit of this kind of coverage? I would imagine there are numerous agents on here who feel Medicare should be privatized but many of these same folks don't want to let consumers have control of their own money (with tax savings) on an HSA plan because it's "not what their used to" or "not what they want". What I have learned in 20 years of sales, 15ish or so doing Healthcare, is that the customer doesn't always know or understand what they need with Health Insurance, but they always think they know what they want. It's partially our job to help them understand what each type of Insurance is truly designed for and how it may benefit/harm them long term.

I think a lot of agents take the easy raod with clients and just pop them into whatever plan du jour has best combo of rates/co-pays, etc and then moves these folks around everytime they call and bitch about rate increases and/or problems. A much simpler system would be to fully explain the value of HSA plans and educate them as to why it might make more sense for them, and I guarantee half of those former co-pay clients will go HSA. About half of those will actually open the account, and for those you have not only saved them money but you have introduced them to the concept of savings, tax-shielded income and budgeting which is a good thing.

All this being said, I don't even have 40% HSA plans on the books because I am not about to force a client to take a plan they just can't understand or don't seem comfortable with, especially if they're dealing with day to day maintenace issues already. However, I feel if I don't fully explain/offer these programs (especially to couples/families over 40) I am doing my clients a huge disservice.

[moonlightandmargaritas]

A very cogent post by CT InsureGuy. Before talking about the HSA concept, I always ask, "are you open to a new idea that a lot of people are using with great success?"

Then I gauge their reaction.

The other reality is that logic does NOT sell. A couple of months ago, a mortgage broker who was attending a presentation I gave to a group of realtors came up to me after it was over.

He thought the HSA idea was great -- did I think he'd be a good candidate? We made a date for a call. After talking to him, he was what you'd call a "textbook" prospect. Him, wife, 2 kids, everybody healthy, and he was paying big for traditional type copay coverage.

I ran some numbers. He could buy the insurance, FULLY FUND the HSA, and still save about $50 a month from what he was spending...

I don't normally see too many people in person, but he asked me to explain it to his wife at his office. Because it was within about two miles, and a client of mine set up the speaking engagement, I went.

Nice gal (cute too). Spent about forty-five minutes with the concept/questions.

Remember now, there is absolutely no reason someone wouldn't do this. All upside, NO downside risk.

They didn't do it.

[LGilmore]

"don't seem comfortable with"

BINGO! That should be our first concern for client care. It isn't what we think is right, as we could be wrong (I know some of us are never wrong).

Every product sold has a strong and a weak point to it. As long as we spend time explaining BOTH aspects to a client, we're doing our job.

The right product for a client? the one they are most comfortable with, after we've explained their options.

Even the most scientific mathmatical methodology can fail the stomach test.. if your client can't sleep easy owning what you've placed with them, they will move elsewhere.

And I have to say after 20 years, the stomach test is still the best indicator of client satisfaction with your suggestions.

[somarco]

They didn't do it.

Maybe you need to spend some quality time with Rob to find out what you are doing wrong . . .

[moonlightandmargaritas]

Originally Posted by somarco

Maybe you need to spend some quality time with Rob to find out what you are doing wrong . . .

I tried to get some help through Chump's association to no avail. I think the dues are too low.

Have you got his number?

[CT Insure Guy]

Originally Posted by LGilmore

"don't seem comfortable with"

BINGO! That should be our first concern for client care. It isn't what we think is right, as we could be wrong (I know some of us are never wrong).

Again, I don't totally agree with that, because certain things in life that are important do not make us "comfortable" but still benefit us greater than those that do.

For instance, I feel very "comfy" sitting in my recliner and eating Cool Ranch Doritos while watching ESPN and feel far less so why I attend my LA Boxing classes, but there is an obvious benefit to the more uncomfortable choice. I don't love the notion of getting a colonoscopy but I know I will be far better off getting one than dealing with the intense discomfort Colon Cancer may bring. I also feel very comfy taking my golf club back the way it feels natual and then employing a downswing that causes me to often times hook the living piss out of the ball but I know if I go back to the uncomfortable swing a golf pro showed me it will pay far greater dividends.

This entire country was built on people being uncomfortable and I still think it's the best place to live and probably always will be. If we allow people to always take the easy or "comfy" road, without making a concerted effort to show them the potential benefits of the more difficult path, are we really helping anyone? I don't feel my job description is an order taker otherwise I'd be at Circuit City ringing up TV's and DVD players.

Of course there are exceptions, as I stated earlier, and I will never and have never forced someone to take a plan they simply did not want any part of. I do, however, make them fully aware of what a "smarter" plan could save them over the next 10+ years. They make me get a license for this job so I am always going to employ the logic that I know more than the customer (within the scope of Healthcare at least) who doesn't have one. Call me crazy...

[somarco]

Chumps can be reached at BR549 . . . .

[moonlightandmargaritas]

Originally Posted by somarco

Chumps can be reached at BR549 . . . .

Boy, are you datin' your own self when you remember Junior Samples!

YouTube - Where Oh Where Are You Tonight?

[Delta76]

Remember now, there is absolutely no reason someone wouldn't do this. All upside, NO downside risk.

They didn't do it.

My most vivid memory of the same concept was with a small group plan with ten employees, except it was an HRA instead of an HSA. Same deal, worst case savings to the business to fully fund 100% of the deductible for the employees and have it all used equal to $12,000. Best case savings equal to around $25,000.

They didn't do it!

[LGilmore]

Please don't confuse confortable with "easy". Some of the references you're making are the easy way out. I'm talking about that thing that wakes you up at three a.m.. The fretting over the decision made.

If a client is not comfortable with their decision, they will go elsewhere.... nowhere does that imply "easy". It implies the feeling of doing the right thing. Sometimes the hardest thing to do is also the one that allows you to comfortably sleep at night.

Just so we're clear... k?

[CT Insure Guy]

Originally Posted by LGilmore

Please don't confuse confortable with "easy". Some of the references you're making are the easy way out. I'm talking about that thing that wakes you up at three a.m.. The fretting over the decision made.

If a client is not comfortable with their decision, they will go elsewhere.... nowhere does that imply "easy". It implies the feeling of doing the right thing. Sometimes the hardest thing to do is also the one that allows you to comfortably sleep at night.

Just so we're clear... k?

I understand what you're saying, and it's not like there's not validity in what you're saying but I think it comes down to who and how is explaining the HSA concept that has a direct relation to the consumers fear post-sale.

As I mentioned, my retention rate on HSA sales completely blows away that of any other product I sell. When I was with Schmega years ago the only product I felt OK about selling regularly was the 5 mill limit HSA plan they had and those plans STUCK (and the Lumenos and OD PPO HSA, etc I sell now stick) unlike anything I ever sold. In fact, I have not written a case with Mega in well over a year and half now (since quitting) and I still have residuals on the books that total more than $1000/month and they are 75% HSA plans. I wish I kept better track of their names/numbers cause I would move them over to a better HSA with someone else!

In any case, when it comes to explaining the concept of HSA's, I think if the consumer has a good "teacher", one that illustrates the benefits and extrapolates outward, etc then the customer is a lot less likely to wake at 3:00am and be restless about their decision. I also call all of my "first time" HSA customers 2 weeks post-sale to see if they have any additional questions, and many times they do, and it's at that time I reiterate the benefits of having chosen an HSA/HDHP. I am NOT losing these customers.

One last example:

My most recent Anthem statement shows that I have sold (Issued cases) 135 cases with them since May 2007 and of those cases 65%, give or take, are a blend of Tonik, Blue Care and C/P plans. Of those 86 or so cases issued I have lost 14 due to various reasons, found a job, etc etc. Of the remaining 50ish Lumenos I have on the books, I have lost 2. TWO! I sell almost exclusively HSA products with Assurant and I know my retention there has been stellar as well.

I am not trying to say "I am better at selling HSA's than you so nah nah nah nah nah" but I do think if you learn about these plans, believe in the concept of what you're selling (if you don't the client won't) then you want have restless customers that go elsewhere.