How Many Times?????

Jun 1, 2007

  1. salpro22
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    salpro22 Guru

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    The "why should I buy this policy if it doesn't cover anything rebuttal" is an interesting way for some clients to say, "I don't see the value in what you are offering."

    Case in point, couple in late 40's this evening wanted to purchase the standard $0 deductible plan, w/ copays and full dental/vision for $200-$250 a month. It seems I get that response more from internet leads vs. telemarketed leads, but that is another topic.

    Anyways, Mr. and Mrs. Ideal Plan have been paying everything out of pocket for the last few years and decided one night that they should get health insurance to cover themselves in the event anything catostraphic should happen. BTW, one of the members had depression and ADHD, which would result in a rider, decline, large rate-up or CSD with the carriers in VA. They told me that they have no problem paying for prescriptions out of pocket and they don't care if the mental issues are covered, but they want to keep their premium low and benefits high. Of course you do! Fair enough, so it was off to the the one deductible plan after they said they would like to look at HSA's and I think that plan is the best of the best in the area for a PPO plan.

    Yadda,yadda, yadda, when they saw the rate for the plan they wanted they went ape crazy on me. Quite expected as I prefer to start off with the ideal plan and knock them into reality and go from there discussing options and letting them pick the rate at the end. The rate they wanted would require a $5000 deductible @ 100% versus the low 4 figure amount I showed them.

    I got the, "why should I buy this policy if it doesn't cover anything?," in which I replied, "How do you mean?"
    "Well, you're saying that blah,blah, blah, nothing gets covered until we hit the deductible, blah, blah, blah."
    "Not at all, this and that is covered at the negotiated rate saving you money right off the bat, combined with the ability to pay for these services with pre-tax dollars, you end up saving money while your HSA account makes money."
    (Wife got very upset at this time) "Well that is just not what we want and we will go buy a discount card program and use that at the hospitals, doctors office and everywhere else and just pay cash."
    "Oh yeah!," "Do you know what the going rate for a MRI test at the non negotiated rate?
    "No"
    "Right around $2,000" "What will you do when the hospital says that they do not accept the discount card, you must show proof of insurance or prove that you have the ability to pay for the services before you will be treated."
    "We will find a plan that does that."
    "Unfortunately, it seems as though the plan you want doesn't exist, but I'll tell you what..........the rest of the story is censored for minors.....

    I surmised I was dealing with ignorant people with not a whole lot of money. Always a bad combination.

    How do you handle the rebuttal???
     
  2. djs
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    djs Super Moderator Moderator

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    Ahh, my P&C training kicks in..... In my 5 minutes of small talk up front, I ask what they do for a living. In my world (Silicon Valley and P&C), certain occupations get discounts, such as teachers, police officers, doctors, engineers (did I mention I'm in Silicon Valley), etc.

    If they mention that they work at McDonalds, the conversation takes an entirely different tact than if they are an engineer at the latest startup venture. This, along with some common sense, people skills, and what is on special today, helps me position how I present things. Fortunately for me, I do most of my business face to face, it's much harder to read people over the phone.

    I had a gal in my office the other day, whose company just switched from a $30 office visit copay to a $50 office visit copay. She was complaining that she now has to work 5 hours just to go see the doctor (fortunately, she wasn't there to talk about health insurance, this was just a conversation). Based on this statement though, I would know that I have nothing really to offer her, but even if she was making slightly more money (and not on a group plan), a high deductible plan isn't something that could be considered. A $200-$300 doctor bill would be taking food off the table, a $4000 bill would be financially devastating.

    Now, I have no idea where your prospects fit as far as 'financial' underwriting go, but I usually talk to the prospect about it being my job to help them find a plan that fits them, where they can afford the premium month in and month out, good times and bad, that provides coverage for their key concerns. I follow this on with the fact that everyone is different, and that we need to have a conversation about what their needs are, what their concerns are, and that based on this, I can present options for them to chose from.

    As soon as someone mentions a discount card, you pretty much know your in trouble.......

    Dan
     
    djs, Jun 1, 2007
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  3. Krono
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    Krono Super Genius

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    "I'm sorry ma'am...but it appears you are too stupid to own insurance. Someone having your amount of brain damage would never make it through underwriting..."

    In reality, I would probably say:

    "It appears the plan you want for the price you want to pay doesn't exist. We have a problem then...what do you propose we do about it/what do you think the solution is?"
     
    Krono, Jun 1, 2007
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  4. somarco
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    somarco That Medicare Expert Guy

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    They are looking for something that does not exist. Until they accept this as fact you are teaching a pig to sing.
     
    somarco, Jun 1, 2007
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  5. James
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    Depending upon how much they make, if the HSA credit gets them below a certain tax line they will qualify for EITC. Which means the HSA money will be given back to them and maybe more, if they are in the low twenty grand a year to begin with. HSA's can be very useful if you have a family in the low income bracket but make too much to qualify for the EITC. I had one woman that had to borrow money from her parents to completely fund the HSA which qualified her for EITC, she got back I believe around 4 grand that she wouldn't of recieved without the tax line being lowered below 19 grand a year or something like that, consult with a tax person for exact amounts. Something I pick up from Joann Mills Lang and her book the "The Consumer Guide to Health Savings Accounts".

    Now if they are in a higher tax bracket, lets say 20%, that $5 grand equals a savings of a grand on their taxes right off the bat, so they have a grand to spend on premiums that is basically free money to them.
     
    James, Jun 1, 2007
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  6. salpro22
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    salpro22 Guru

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    Thanks for the suggestion James, I will pick up the book. I don't normally deal with low-income people, but it is nice to have this type of information.
     
  7. James
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    LOL, yea when I first started reading the book she had one statement that HSA's were for the wealthy, I just rolled my eyes! Then she had another statement, something like "and also for those near to poverty!", LOL glad I kept reading.
     
    James, Jun 1, 2007
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  8. jacodaro
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    jacodaro Expert

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    I have the same problem when presenting options to those who have no coverage. Recently spoke to owners of a successful auto repair facility. Currently have a worthless discount card. Both late 50's, no coverage. Explained their options in the individual market and received the same "why do I have to pay for nothing" statements and that they are going to continue shopping for that low premium first dollar plan. Sometimes you wonder how they are able to run a business. Maybe they didn't trust me.
     
  9. Insuranceman
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    What I have found is that those people looking for the plan that does not exist, usually end up getting a hospital indemnity plan or discount card from a agent that lied thru his teeth to get the sale.
     
  10. somarco
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    somarco That Medicare Expert Guy

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    Jaco, you really don't need clients that are that stupid. Just smile and walk on by.
     
    somarco, Jun 1, 2007
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