Why are health care consumers lazy and brain dead?
So far this month I have had 3 people tell me that it is easier for them to stay with their current carrier, and pay the higher premium, than to make a change.
One lady openly told me she could not afford the $800+ premium coming in January. I showed her several alternatives, including one for less than $250 that would cover her pre-ex conditions, and she opted to stay where she was. She told me if the premium got to be too much she would call me.
Another was looking for coverage for her daughter who takes Prevacid. The plan they have on her with BX is a $1000 deductible that is increasing to over $400/month for a 27 yr old female.
I suggested a plan with a $2500 deductible & full coverage for $123.
Her husband said the deductible was too high but would be willing to look at a $1500 deductible.
I countered with a $1500 for $300 and full coverage for a medicine that runs $106 per month. I still suggested the higher deductible at a $300+ savings per month.
They opted to keep BX.
I faill to understand why people complain about the cost of health care and insurance but still insist on doing something stupid like paying more for less coverage.
Ahh yes, the moral to the story is clients don't like writing big, unpredictible checks. I run into this a lot in my P&C world as well. Checks they write monthly fit nicely into their budget, unexpected 'deductible' checks don't. I can almost guarantee you that same person has less than $10 in their savings account.
This is my world:
Mr Prospect, you can save a lot of money by increasing your auto deductible from $250 to $750, put the first years difference in the bank, just in case you have an accident, and then you can pocket the difference in the future.
I've learned that a lot of people (wisely) realize that they can't afford $750 if they get into an accident, so they keep the lower deductibles. After all, isn't that what insurance is for? To help smooth out the bumps that the unexpected things in life cause?
Of course, not much helps if you don't have a little bit of savings.
Dan
P.S. People are worse with deductibles in thier healthcare than they are with auto's. I guess they feel if they are paying a few hundred dollars a month, they should be able to use it for the day to day stuff.
I have plenty of similar stories. To me, I realized to be a prospect, four things need to be in place:
1. Pain
2. Ability and desire to work with me if I can help.
3. Smart enought to make a decision.
4. Profitable enough for the time involved (I can't be in the charity business)
The difficult part is determining number 3 before you do all the work. I still haven't found a good way. However, when I realize number 3 may be lacking, I don't chase at all.
The real product that drives me crazy is Med Supps. I can move a non smoking woman at 70 years old from Blue Cross Plan F to United World Plan F saving about $45 per month.
The coverage is EXACT but I still hear the same old stuff. "Blue Cross has paid everything." I ask "Do you realize that all Plan F's are the same and pay the same?" The answer is ALWAYS "I understand that." My question then is "so then you can have the same benefits at about $500 a year less. Since there is no reason to pay more, is this something we can discuss?"
Obviously some people still have brain cells but I just can't believe it when I get the answer, "No, I'll stay where I am for this year."
WTF?!?!?!? These idiots would rather pay $500 more! Maybe I can sell them a cup of coffee for $10 also.
Rick
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Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
One told me she wanted to stay put since BX was going to cover her meds.
I suggested that BX is not covering her meds, she is. They charge her $300+ per month and allow her to fill the first 3 Rx at her expense before allowing her to buy the next 9 refills at a $60 per month savings.
Her actual cost for the meds is $4500 for a medicine that, if paid for out of pocket, would cost $1200 per year.
So she would rather pay almost 4x the cost of her med to have the carrier "cover it for her".
I have plenty of similar stories. To me, I realized to be a prospect, four things need to be in place:
1. Pain
2. Ability and desire to work with me if I can help.
3. Smart enought to make a decision.
4. Profitable enough for the time involved (I can't be in the charity business)
The difficult part is determining number 3 before you do all the work. I still haven't found a good way. However, when I realize number 3 may be lacking, I don't chase at all.
With Med Supps, I've had people tell me they can't leave their current company because if they do they will lose all that money they have paid in premiums. Even though I can save them nearly $1,000 per year.
I have heard this several times from people who have BC&BS.
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Consumers who do stuff like this have only two real reasons for keeping their current plan.
Either they don't trust your recommendation.
Or they are too ignorant to do what is best for them.
In either case, there is no way to make the sale.
Very true. I think the bigger question is this case is what we tell ourselves after situations like this occur. Will our ego's allow us to evaluate what took place objectively?
If the sale did not happen due to ignorant behavior on their part, there is nothing more you can do. If it was due to them not trusting your recommendation, there is a lot you can do to improve yourself. There always seems to be that moment when you make direct eye contact with the prospect and you know that they either "get it" or not.
If you see that they don't "get it", you always have to back pedel and start with building credibility first. It is not pleasant to remind ourselves that not all people trust us. Believe it or not, not all people trust or even like insurance agents!
The best thing we can walk away with in cases like this is to be true to ourselves and give an honest critique of the event. If we are able to improve upon or refine any of our skills then all was not lost.
The funny thing is, I have never seen a non sale happen due to anything other than prospect ignorance!
Before you knock someone for this comment, realize it's important, very important. Even worth paying more for.
Sure plan designs are exactly alike, premiums are different. However one may pay a claim within two weeks and another takes 6 months..
Even though you might be saving them money on the front end the hassle at the other end makes it not worth it for some. It doesn't mean their stupid or slow. It means some hassles aren't worth the savings..
Been there done that with some carriers who are cheaper. With some of those cheaper carriers I found myself really earning my commissions several times over as they just couldn't pay a claim without me having to get involved. low price but bad claims paying ability is not a bargin.
So if blue has paid everything, better be able to show company "A" has to faster or just as fast, at a lower cost.
Before you knock someone for this comment, realize it's important, very important. Even worth paying more for.
Sure plan designs are exactly alike, premiums are different. However one may pay a claim within two weeks and another takes 6 months..
Even though you might be saving them money on the front end the hassle at the other end makes it not worth it for some. It doesn't mean their stupid or slow. It means some hassles aren't worth the savings..
Been there done that with some carriers who are cheaper. With some of those cheaper carriers I found myself really earning my commissions several times over as they just couldn't pay a claim without me having to get involved. low price but bad claims paying ability is not a bargin.
So if blue has paid everything, better be able to show company "A" has to faster or just as fast, at a lower cost.
Your comment is exactly correct for medical insurance. For Med Supps, not so much.
In my experience, no carrier has any advantage over any other as far as claims paying.
It makes NO DIFFERENCE which supplement someone has. In California, one can change their plans every year without underwriting. Go for the lowest price. That's all that matters.
With some of those cheaper carriers I found myself really earning my commissions several times over as they just couldn't pay a claim
I have been kicking carrier butts for over 30 years. I don't have the time or patience to deal with carriers who will not service their clients.
If someone wants to buy Fornication Mutual they will get it from someone other than me. If they want to buy a plan with artificial caps on claims they will buy it from someone other than me.
BX stiffs their clients in this state on renewal business to the point by the time they come to their senses they could drop a 10# turd and not even feel it.
If an insured likes taking it up the arse then they deserve to stay with BX.
I find myself in the same situation with BCBS and United World. I can save the client a ton of money here in South Carolina and they still wont switch. See i think the problem here is that most people have had BCBS at some point in their life and they have learned to trust the company and dont mind paying more for something they are familiar with.
However, yes ALL medicare plans are alike and they understand and still dont switch. I showed a woman that in 10 years her plan F will be over 200/month w/ BCBS and United world would only be about 130, she stayed w/ BC.
I find myself in the same situation with BCBS and United World. I can save the client a ton of money here in South Carolina and they still wont switch. See i think the problem here is that most people have had BCBS at some point in their life and they have learned to trust the company and dont mind paying more for something they are familiar with.
However, yes ALL medicare plans are alike and they understand and still dont switch. I showed a woman that in 10 years her plan F will be over 200/month w/ BCBS and United world would only be about 130, she stayed w/ BC.
People in Missouri seem to have the same mind set. I can blow BC&BS out of the water with a couple of different companies and they still won't change. These are people who don't have a pot or a window and in some cases the savings is close to $100.00 per month.
One woman who lived in a about a 30' trailer told me that she has has BC&BS since she was 18 and lose all the money she paid them if she changed companies.
I simply said thank you and left. I can't combat ignorance.
So far this month I have had 3 people tell me that it is easier for them to stay with their current carrier, and pay the higher premium, than to make a change.
I haven't seen anyone touch on this yet.... As I don't sell Health I don't know but for my P&C clients, we do all the background work for them. Canceling current policies, notifying lien holders and mortgage companies, all the client does for us is sign forms and give us a check. Is all that being left up to the consumer?
Lazy and Brain Dead
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