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Here's my .02....

I have been replacing employee group (10-50 lives) with individual/family coverage for the last six months. Accountants are sending me more prospects than I can handle right now. It's been time-consuming, coming up with an approach letter, presentation materials, etc., working out the kinks, but well worth it. I wanted to be on the front of the curve.

I get minimal push-back from employers - once they understand how it works. Their employees are getting safer coverage, and they're saving about 40%!

Ya better get familiar with it cuz in ten years "defined-contribution" will be the only game in town.

Remember traditional pensions?

It is NOT about ramming an HSA plan down the employee's throats. Quite the contrary. It's about giving them a choice. The savvy ones (even with babies and toddlers) choose the HSA route after they see the math and hear the advantages to them.

It'a absolutely critical that it be structured correctly.
 
moonlightandmargaritas said:
Here's my .02....

I have been replacing employee group (10-50 lives) with individual/family coverage for the last six months. Accountants are sending me more prospects than I can handle right now. It's been time-consuming, coming up with an approach letter, presentation materials, etc., working out the kinks, but well worth it. I wanted to be on the front of the curve.

I get minimal push-back from employers - once they understand how it works. Their employees are getting safer coverage, and they're saving about 40%!

Ya better get familiar with it cuz in ten years "defined-contribution" will be the only game in town.

Remember traditional pensions?

It is NOT about ramming an HSA plan down the employee's throats. Quite the contrary. It's about giving them a choice. The savvy ones (even with babies and toddlers) choose the HSA route after they see the math and hear the advantages to them.

It'a absolutely critical that it be structured correctly.
Click to expand...

No question about it!
 
moonlightandmargaritas said:
It is NOT about ramming an HSA plan down the employee's throats. Quite the contrary. It's about giving them a choice. The savvy ones (even with babies and toddlers) choose the HSA route after they see the math and hear the advantages to them.

It'a absolutely critical that it be structured correctly.
Click to expand...

Choice is the only way to go. I slab down their binded full market search report on the table and walk them through the whole nine. However, the situation in CA may be different elsewhere.

In CA Many people have been in Kaiser Permanente sometime in their life and either love it or hate it (or never used it). Often when I sit down with people they have the old paradigm that there's no deductible and small co-payments for MRI's, etc. (Kaiser HMO World - has unbelievable benefits for the cost - except for the fact it's HMO).

Some get sticker shock, some don't. But alas, after showing them HSA's & cafeteria plans, they just rather pick a PPO or HMO plan that has a max deductible of 500 or 1000 dollars for their group knowing full well that a side account that accrues interest and is tax-free can take care of the higher deductible thus making it 'feel' like a 500 or 1000 dollars. Which, like you said, could save them up to 40% over the year.

Maybe CA business owners like to throw money away or maybe it's just hard to teach an old dog new tricks, nonetheless, for Group Coverage in CA, in my experience, it's all about Low Ded's. However, Individual / Family Policies I can sell HSA's all day, like what you are doing now.

There's just something about the owner of a company who wants (doesn't mean he can have) the simplest plan to understand for their employees. They want their employee to feel like they are benefiting from their group plan from their very first visit - no matter what type of visit.

Yes, I've heard of the Health Care crises in our country but the business owners I speak with rather wait a year if they can't afford it and prepare financially for the plan they really want.
 
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moonlightandmargaritas;34272]Here's my .02....

I have been replacing employee group (10-50 lives) with individual/family coverage for the last six months.


Moonlight, when switching employees to Ind/Fam plans, how do you get around group "participation" requirements.
 
No, they haven't decided to cancel. I show them why cancelling helps them save 30-50% on their employee health insurance cost, and gets their employees safer, better coverage. Then they decide to cancel their group health insurance plan.
 
Moonlight, I like that approach, although how do you deal with the uninsurables? And do you prospect the groups yourself by phone?
 
moonlightandmargaritas said:
No, they haven't decided to cancel. I show them why cancelling helps them save 30-50% on their employee health insurance cost, and gets their employees safer, better coverage. Then they decide to cancel their group health insurance plan.
Click to expand...

I don't know how you can say it's safer other than an employee now has the incentive to leave the company when he wants because he/she already has coverage. I understand the portability of it - but to a business owner this would be a negative. They want them to stay for whatever reason.

I think you are comparing apples to oranges. Again, better coverage for less money. I think this is a misnomer at least in California. Blue Cross Group plan can you get a 500 deduct/4,000 OOP for a 40 year old under $250?

A higher deductible plan is where the IFP's starts to become somewhat cost effective versus Group. (i.e. 1,500-2,000).

Two most affordable IFP's w/ low Deducts in CA. (40 yr. ex.)

Aenta 1,500 $233
Nationwide Health plans 1,750 $215

I think dollar for dollar the BC is better. Your group is internal making less turnover (a huge problem for most businesses - usually the 2nd reason to buy group) and no medical questions. Sorry Jimmy, you have diabetes type 2 - better luck next time.

Again, this is apple to oranges and don't forget the statistic that groups stay on the books longer, almost twice as long as IFP.

I know most of us can sell ice to Eskimo's - so however you want to get an appointment is up to you.
 
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wildcat said:
Moonlight, I like that approach, although how do you deal with the uninsurables? And do you prospect the groups yourself by phone?
Click to expand...


As soon as the group coverage is cancelled, it makes everyone HIPAA eligible (group cancelled = no COBRA). For uninsurables here in Florida, they get guaranteed issue coverage with no pre-existing limitation, at a premium of not more than 200% of standard, which is still usually cheaper than group!

I have prospected by both phone and mail to get started. Getting referred a lot by accountants now.
 
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