B2B

Jan 7, 2008

  1. arnguy
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    arnguy Guru

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    For several years I have been selling small group health insurance (2 to 9) and some one person (sole proprietor) groups. I believe that Jon P. stated some time ago, maybe on the old forum, that he goes B2B and sells individual policies to replace some or all of the small group coverage. He also said he was going to try to post a video stream of himself making such a presentation. That did not happen----perhaps technical difficulties.

    My question is, why would a person switch from group coverage to individual? Here in PA, the small group coverage is GI and the so is the one person group. True, the commissions are smaller than individual but you don't have to sweat underwriting. In addition, maternity comes with the package. Maybe things are different in MD among other states.

    Thoughts, anyone?
     
    Last edited: Jan 7, 2008
    arnguy, Jan 7, 2008
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  2. Crabcake Johnny
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    Crabcake Johnny Guru

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    Well I don't replace group plans when I go B to B - I simply look for owners who already have individual coverage or group but with no employees - I run into a decent amount of spouse/husband group plans.

    When I got into a biz and the owner says they have group with employees on the plan I say "bye."
     
  3. salpro22
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    salpro22 Guru

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    If you can get a comparable plan BY going through underwriting in the individual world, why go with group?

    If you don't plan on getting pregnant or YOU'RE a guy, why go with group? Sure there's the oops, but many states offer help for people who are pregnant.

    I haven't taken an employee of a group before, although I'm quite successful at taking their spouse and children off the group and putting them on a family or two individual plans. Really boils down to the cost, underwriting, and how much they hate XXXXX company at the time.

    You recall that prospective client who we both told where to go back in the spring because she lied to us and was a major PITA. A comparable plan if she was healthy would've cost over 50% LESS than then the 1 group plan. Same thing for her two children. Why pay $1200 a month when you can pay $400-$500, pocket the difference and go buy some shoes.
     
  4. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    I have actively been switching folks from group to IFP for about six months or so.

    Premium savings for the boss (and ee in family situation) about 30-50%.

    The employees also have better, safer coverage.

    Win, win, win.
     
  5. James
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    James Guru

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    Group Insurance Sucks, yet I doubt it Sucks as bad as Government provided Health Insurance would Suck? Yet, I would call it a toss up, esp. since more and more Businesses are coming of the mindset that they should not be in the Health Care Business. In fact, I am still wondering how in the hell it ever made sense for Employers to provide H/C? It is one of the stupidest things I can imagine, must of been some Suckers that fell for that!
     
    James, Jan 9, 2008
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  6. arnguy
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    arnguy Guru

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    James, historically the trend for employers to provide health insurance started during WWII. In order to attract employees, and with wages frozen by Federal decree (Wage and Hour Board), the bargaining chip was to offer health insurance instead of the higher wages that were prohibited. Pretty soon it became part of union contracts and eventually it became pretty much standard in most industries. As the Federal 3rd Circuit Court of Appeals in Philadelphia pointed out recently, there is no federal mandate requiring an employer to offer health insurance. That ruling had to do with employers providing health care for retirees which was in the news recently.
     
    arnguy, Jan 9, 2008
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  7. James
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    James Guru

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    I understand that, yet it is a bad deal for the employee once they are in a position that they need that Health Coverage. It is almost a form of slavery, okay that is a little strong but, how many people can not leave a shitty job because of health reasons? Any way you look at it, the employee takes it on the chin. Now though, with prices sky rocketing, mainly group rates the employers are also taking it on the chin, guess what happens then? They either reduce Bene's or cancel, it simply a raw deal any way you look at it and, the individual takes the brunt of the crap everytime!

    Any Reform that keeps Group simply isn't Reform! In most cases it's simply the Government getting a bigger say in H/C.
     
    James, Jan 10, 2008
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  8. planner
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    planner New Member

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    Any agent who sells an employer on switching from group insurance to individual policies will at some point either lose their licenses or be sued.
    If you are going to be in this business, learn a little about ERISA, Federal mandates and State mandates.
     
    planner, Jan 29, 2008
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  9. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    A pretty bold, and very general statement.

    Do you have any facts to back up your assertion?
     
  10. James
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    James Guru

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    LOL, yea you hear that, "You Will Loose Your License" and, ERISA is gonna come for it! So, "Whatcha Gonna Do, When They Come For You?!":D
     
    James, Jan 29, 2008
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