Over 150.000 insurance professionals and consumers come to the Insurance Forum every month. Click here to register for FREE


Go Back   Insurance Forums > Insurance Agents and Brokers Forum > Employee Benefits Forum

Reply to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince     
Old 04-26-2017, 09:40 PM   #1
Guru
 
Join Date: Jan 2013
Posts:1,099
State: yorkriver1 is an Insurance Agent from Undisclosed Location
yorkriver1 is a member of 1000 posts VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
My heart sank a bit when the owner of the tax prep office in my friend circle asked me to come and set up group insurance now that there are enough employees on staff. The owner spoke of spending $350/month for health insurance, which is actually a pretty good deal. All workers + owner are paid under payroll. Saving money for the owner isn't going to happen in the pure dollar to dollar sense. I think we are talking about a super small group, 3-5 employees.

I am thinking of what list of benefits a group coverage program will provide the owner. Employee security and loyalty is one, now that ACA's future is so uncertain. The employer gets tax breaks, but it's still an expense. The owner can get better coverage in terms of wider networks and out of state treatment options under good PPO networks.

Since the employer is a tax pro I will suggest an HSA compatible plan as one option.

Your thoughts?
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince

Old 04-27-2017, 09:06 AM   #2
Guru
 
Join Date: Oct 2009
Posts:6,393
State: scagnt83 is an Insurance Agent from South Carolina
scagnt83 is a member of 5000 posts Super VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
The benefit to the Owner is greatly increasing employee retention. A white collar business with no benefits to offer, is at a serious competitive disadvantage when recruiting.

The only tax benefit is that Premiums the business pays are tax-deductible.

HSAs are popular with CPAs. I would certainly go that route.


You arent going to "talk them into it". Either the owner sees the value or they dont. But whatever they do.... it will be a hell of a lot more than $350 a month... sounds like they have a Short Term Plan right now.... or they are 25 years old... or they are deducting everything and getting premium credits.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 04-27-2017, 11:31 AM   #3
Guru
kgmom219 on New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
 
Join Date: Apr 2013
Posts:4,829
State: kgmom219 is an Insurance Agent from Texas
kgmom219 is a member of 1000 posts VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
CRITICAL...

make sure he understands the family glitch. Telling people with a family that make $15/hour that they no longer get free health insurance because they aren't subsidy eligible can really become an issue for small business owners. (If they are all over subsidy line, it won't matter, but bring it up anyway)

Also:

1. Offer 2 or 3 plans, one of which is an HSA (Even with 5 ee's). Show how he can pay for the lowest cost plan at 50% of the ee rate. Do not use the carrier HSA. Go direct with hsabank.com. Stupid suggestion, but it works: Have a 2 or 3 page spreadsheet, but still print the quotes. Let them see the 400 pages of paper you have to understand to get them to the actual quote/benefits. For the 1st meeting, it impresses them everytime.
2. Do voluntary dental with whatever health carrier you choose (just make sure you explain the participation guidelines, so he understands the rules)
3. Do company paid life (employees love it and the reality is that if he doesn't and someone dies without life insurance, the family will look to him for funeral costs. Its stupid cheap)
4. If he is married, MAKE SURE the wife is happy. If the wife isn't happy with the plan/benefits, its going to be your fault at 7am, when she is bitching. Then you will get a crappy phone call on the way to work, after he got chewed out. (I'm not kidding) If its an HSA, specifically ask if the wife understands the benefit how to use the debit card. If he has kids and isn't going to pre-fund the account so she doesn't have to pay full price when the kids are sick and screaming, you are going to have a problem.

Hope this helps! Good luck!

------------------------------------
Good things don't come to those who wait. They come to those who work their butts off and never give up.
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-02-2017, 08:31 AM   #4
Guru
 
Join Date: Mar 2012
Posts:552
State: junkman is an Insurance Agent from Tennessee
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
In many states dental premiums will cost less than actually paying for 2 cleanings and x-rays. Run all of the employee paid premiums through a 125 POP.

Accountants understand "incremental analysis". Looking at only out of pocket, have the lowest premium plan on the table (BCBST used to nave $5,000 100% which I loved). Show a lower OOP that exactly matches the structure of the lowest premium plan (say $3,000 OOP). Then, show the same plan with owner deductible and copays. Most people will take the highest OOP.

Note any underwriting requirements and waiting periods for any plans you present in the environment on the day you are enrolling. Rules are in flux (in case you haven't noticed). Don't answer "yes" if the question is limited to 5 yrs and the incident happened 5 yrs and a day ago.

Note that the owner's premiums may or may not be deductible as a business expense. Any entity filing a Schedule C doesn't get the full deduction that a corporation does. He should know this as a CPA but you should also as an agent.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-09-2017, 09:45 AM   #5
Guru
 
Join Date: Jan 2013
Posts:1,099
State: yorkriver1 is an Insurance Agent from Undisclosed Location
yorkriver1 is a member of 1000 posts VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince yorkriver1 is the thread starter for: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince

Great info! Expecting the census later this week. Stopped by and chatted briefly, apparently none have tax credits. Now, the question is, do we age rate or composite. Will discuss with owner, who will have to pay 50% of employee cost, either way.
What do you all do with super small groups? My last one had EE's not too far apart in age, so I did composite. Group of 5.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-09-2017, 10:37 AM   #6
Guru
kgmom219 on New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
 
Join Date: Apr 2013
Posts:4,829
State: kgmom219 is an Insurance Agent from Texas
kgmom219 is a member of 1000 posts VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Originally Posted by yorkriver1 View Post
Great info! Expecting the census later this week. Stopped by and chatted briefly, apparently none have tax credits. Now, the question is, do we age rate or composite. Will discuss with owner, who will have to pay 50% of employee cost, either way.
What do you all do with super small groups? My last one had EE's not too far apart in age, so I did composite. Group of 5.
I always explain the difference and give the owner the choice.

------------------------------------
Good things don't come to those who wait. They come to those who work their butts off and never give up.
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-09-2017, 10:56 AM   #7
Guru
 
Join Date: Oct 2009
Posts:6,393
State: scagnt83 is an Insurance Agent from South Carolina
scagnt83 is a member of 5000 posts Super VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
I dont think SCblues will allow composite rates on a group that small, will they? Are they young? Are they healthy? There are some interesting bundled solutions out there these days for a self-funded small group.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-09-2017, 11:08 AM   #8
Guru
kgmom219 on New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
 
Join Date: Apr 2013
Posts:4,829
State: kgmom219 is an Insurance Agent from Texas
kgmom219 is a member of 1000 posts VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Originally Posted by scagnt83 View Post
I dont think SCblues will allow composite rates on a group that small, will they? Are they young? Are they healthy? There are some interesting bundled solutions out there these days for a self-funded small group.
This is his and his clients first rodeo with group.

I vote NO on self funding at this time.

------------------------------------
Good things don't come to those who wait. They come to those who work their butts off and never give up.
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-09-2017, 11:57 AM   #9
Guru
 
Join Date: Oct 2009
Posts:6,393
State: scagnt83 is an Insurance Agent from South Carolina
scagnt83 is a member of 5000 posts Super VIP club
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Originally Posted by kgmom219 View Post
This is his and his clients first rodeo with group.

I vote NO on self funding at this time.
Good point. I thought he has placed groups before.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Old 05-10-2017, 01:21 PM   #10
Guru
 
Join Date: Mar 2012
Posts:552
State: junkman is an Insurance Agent from Tennessee
New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince Re: New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Self funding works great ....................until a claim gets processed late and stop loss runs out and client gets bill dropped on his desk.

A $5,000 HDHP is like a fully insured self funded with a $5,000 spec. 90% of insureds have claims under $5k. No telling what happens with a 50 life group.

The client can buy the deductible down for employees by using an HRA. All employee premiums should go through a 125 plan. Offer everything ....dental, vision, cancer etc. If you don't, someone else will. Ancillary products are worth as much to the agent as the group. You do not want competing agents messing around with your clients.

Everyone either elects or declines coverage. No exceptions.
------------------------------------
  Reply With Quote to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Reply to New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince 

  Insurance Agent Forum > Insurance Forums > Insurance Agents and Brokers Forum > Employee Benefits Forum




Similar Threads with New Small Group Prospect Thinks Will Save, Need Other Benefits to Convince
Thread Thread Starter Forum Replies Last Post
How-to Ideas for P&C Group Benefits mjcompanies General Insurance Agent Discussions 6 03-28-2012 02:53 PM
Unum Leaves Group LTCI Market Arthur Rudnick Long Term Care Insurance Forum 3 02-29-2012 01:44 PM
BCBS Reduces Rates for Small Group and Individual Plans SusieQ2 Health Insurance and Ancillary Benefits 1 01-09-2012 10:31 PM
Have Small Group Break Ups Accelerated? bill3173 Employee Benefits Forum 20 10-04-2010 04:29 PM
Small Group Health 101 for New Agents Sam Employee Benefits Forum 30 05-26-2009 01:37 PM



All times are GMT -5. The time now is 05:28 PM.

Forum enabled with vBulletin®
Copyright ©2000 - 2017, vBulletin Solutions, Inc.


Join the Forum - It's FREE

Share This Page



Weekly Poll

Where do we go from here? POLL
Nothing - No ACA fixes - status quo
29.82 %
HHS Rulings and band aid bills
17.54 %
Hail Mary repeal and/or replace bill
17.54 %
A bipartisan bill to fix ACA
35.09 %

Voters: 57. This poll is closed