Competing for Group

[padthaiforlunch]

So I call on a business, they have group health in place, but they are up for renewal, with higher rates.

"Well, Miss Business Owner" I say, "let me see if I can get you a similar plan at a better rate."

Now, joy if I can come up with a similar plan that saves money and use it to pitch additional product like DI.

But how, pray tell, am I getting a better rate? Aren't the carriers going to have similar price points? Or am I trying to convert them from their ppo to an hsa plan? What am I missing?

I'm appointed with Assurant, Kaiser and Anthem/BC. Do I need to be appointed with anyone else for health?

Thanks.

 

[somarco]

Pricing for group is just as wide ranging as individual, except with even more variables. If you want to work the group market you need more than 3 carriers.

If you are selling on price you will miss out on a lot of cases. Just like with anything else, you need to sell yourself and your expertise.

Several of my group clients (and a handful of individual) are AOR clients.

Plan design has a big effect on final rates. If you can get the employer to change from a copay plan to HRA or HSA is a start. UHC has a plan (First Dollar) that is a good transition from copay to HSA/HRA.

One mistake rookies make is getting the data, getting quotes, and just assuming the quoted rate is the final rate.

It rarely is.

It helps if you have an idea of what medical conditions exist in the group so your carrier can give you an idea of the final rate.

 

[cadylou]

One other thing to keep in mind is that if the group has been insured by the same company for more than 2 years, typically the rate has risen quite a bit. This is why many of the small businesses that I see feel they have to shop about every 3 years. Then they get a better rate with another company as a "new" client. at least that's what I see here in Kansas City.

 

[somarco]

Everyone thinks they are paying too much, and usually they are. But more often than not it is the plan design that is making the situation unaffordable.

So they shop the case every year or so, thinking they can get the same benefits for less money. Sometimes they can but that relief is temporary. Unless a carrier has messed up, they usually will save maybe 10% by moving to a like plan.

 

[My Health & Income]

Great Advice. Forget about a price. If the cost is their hot button, show them HSA and a benefit plan to cover the gaps. They are ready for a change, show them how your plan is better and reduces employer and employee costs. If you get a chance to present to a group, even better. If not, make sure you explain the benefits of HSA's and that they know the difference from an FSA.

 

[James]

Or instead of competing for group you dive into the dark side and become a "Group Buster". Like being a Ghost Buster, you get a really cool car to drive around in and a catchy song to play on your loud speakers.

 

[padthaiforlunch]

Or instead of competing for group you dive into the dark side and become a "Group Buster". Like being a Ghost Buster, you get a really cool car to drive around in and a catchy song to play on your loud speakers.

What, you're going to run them over and remove them from the group?

 

[James]

What, you're going to run them over and remove them from the group?

Well, that would be one way but, it might violate some DOI rule? No, I was referring to cherry picking healthy people from the group or dependents of the group member.

 

[James]

What, you're going to run them over and remove them from the group?

No, you don't run them over, you flame them with a flamethrower!

 

[LGilmore]

If the existing agent hasn't done their work, ask for a letter with their current carrier to explore options there as well. Most carriers have dozen of options that could be used. Sometimes it is a matter of changing the agent of record and making a few tweeks here and there.

A business owner wants to know their options in the most simplified way possible.