Group Health Producers
- Thread starter dandan
- Start date
-
- Tags
- group health key man life
- Staff
- #32
no he did not......he asked for intensive free help.....when I started in this industry there was not even a board like this to ask help or have someone WILLING to help you.....you want some advice....why wait till Oct......AOR him now........
My Health & Income
Expert
- 25
Amen.
It takes a lot of work and experience to design an appropriate plan. There is no way to answer with any more specifics than has been given.
- 2,152
Personally, I feel as though he was just looking for general ideas. Plus I think all groups should have a 125 plan set up for one reason or another, so basically he was on the right track. Personally, just end group health idea with HSA's and HRA's and using supplements, I'm totally onboard with that! When a owner ask for "Creative" ways of looking at his company health plan (likely expensive for him), he may very well be looking for a way of getting out of the health management industry.
That's exactly the point about seeking out more information. There's something to be said about spending your time wisely. I'm sure if one of my clients asked me how to fund a buy/sell agreement or wanted me to work on an estate plan I could figure it out with some proper study time including; taxation, legal issues, insurance, etc. etc., OR I could team up with a professional, split the case, learn how to do it the right way THE FIRST TIME, possibly find another mentor and friend, while being able to obtain referrals down the road for doing such a stellar job.
Large group is decidedly different from small group and takes a different set of assumptions. Sam hit on some of them, but even if you have all the data unless you know what to do with it, and how to use it to your clients advantage in negotiating with the carriers, you will not accomplish what you set out to do.
I lost out on a very large case early on in my career due to a rookie mistake. I was working a case jointly with an older, experienced life agent who had brought me in to assist on a group case. At the time I had a couple of years in the business, all in large group, but still made a stupid mistake.
Not only did I lose, but so did the agent who called me in.
Nothing wrong with 125, HRA, HSA or any of the other gimmicks. Unless you understand the way all these tools impact the overall plan you are a lost ball in high weeds.
You have to make the plan functional and cost effective for the owner as well as the employees. That can be a real challenge and takes a multi-pronged approach starting with radical plan design and a lot of education . . . for the agent and the client.
I lost out on a very large case early on in my career due to a rookie mistake. I was working a case jointly with an older, experienced life agent who had brought me in to assist on a group case. At the time I had a couple of years in the business, all in large group, but still made a stupid mistake.
Not only did I lose, but so did the agent who called me in.
Nothing wrong with 125, HRA, HSA or any of the other gimmicks. Unless you understand the way all these tools impact the overall plan you are a lost ball in high weeds.
You have to make the plan functional and cost effective for the owner as well as the employees. That can be a real challenge and takes a multi-pronged approach starting with radical plan design and a lot of education . . . for the agent and the client.
- 7,790
Sayonara, dandan.
Last edited:
My Health & Income
Expert
- 25
An HRA could get him out of the health management side, but a 125 plan won't.
Sorry to see the guy go, but if he would have taken the advice about working with someone experienced, it would have solved his problem.
- 4,132
I've done group that big and be aware.. premiums for something that size are going to run 750k to a million plus a year. Your job is to make sure that money is not seen as sh ity benefits....
What you propose will depend on what type of employee you're dealing with. Do they have money to fund a HSA? How's their general health history as a group? What makes sense? Is a dual option plan a good choice. Is a full blown cafe plan a good idea or waste of money? Would a premium only work fine? I would first take the time to learn what his average employee is like.. learn the demographics of the business.
From there your goal is to save the guy some money, but also put together a plan the employees value. You are his advertising to employees. How many dollars does he have to spend for it to work?
You don't necessarily have to seek help, but you should open a book or two between now and then. Learn the different plan designs including a self insured approach. I've installed indem, ppos, hmos, duals, self insureds depending on the situation.
It's great to have that friendship but be aware, his company size especially if it's growing, is going to attract the big fish who buy the lunches in vegas or maimi. If your big enough, insurance rules don't apply. Your friendship may be tested by gifts from others, how far are you prepared to go?
Good luck be aware of the major liabilities you will be responsible for because of group size. You have time to learn and test drive plan designs.
What you propose will depend on what type of employee you're dealing with. Do they have money to fund a HSA? How's their general health history as a group? What makes sense? Is a dual option plan a good choice. Is a full blown cafe plan a good idea or waste of money? Would a premium only work fine? I would first take the time to learn what his average employee is like.. learn the demographics of the business.
From there your goal is to save the guy some money, but also put together a plan the employees value. You are his advertising to employees. How many dollars does he have to spend for it to work?
You don't necessarily have to seek help, but you should open a book or two between now and then. Learn the different plan designs including a self insured approach. I've installed indem, ppos, hmos, duals, self insureds depending on the situation.
It's great to have that friendship but be aware, his company size especially if it's growing, is going to attract the big fish who buy the lunches in vegas or maimi. If your big enough, insurance rules don't apply. Your friendship may be tested by gifts from others, how far are you prepared to go?
Good luck be aware of the major liabilities you will be responsible for because of group size. You have time to learn and test drive plan designs.
- 2,152
You'll make some strong points but, 125 employees doesn't qualify as a Big Group at least IMHO. I'm thinking Big Group starts at 500 or 1,000? 125 is just beginning medium group and, if the business is growing in numbers getting out of the health management field might be the correct solution today. From what I see out there, once a business decides to get out of Medical it doesn't matter what the employee demographics are.
