Small Group Health 101 for New Agents

[insurebob]

I find that small groups stay on the books longer, are more apt to call you before a problem gets to be a big deal, and will give you referrals, both for other groups, as well as individual.

The small group market (I work with no company with more than 50 emp) is underserved, and dying for attention, and someone to EXPLAIN things to them. They are MOSTLY husband and wife with friend setup, and looking to get some pre-ex covered, willing to pay the increased premium, and glad there are more companies out there than the Evil Empire.

The main thing you need to get through to these small family-owned groups is the fact that there must be a DOL-4. There must be an employee-employer relationship. I learned that the hard way many years ago. If they have never heard of a DOL-4, or the term "Wage and Tax Report" then they are NOT a small group.

One thing I can't emphasize enough, especially in small group, is finding the Physician. Make sure you have the name, number and address of their physician. That can be a deal breaker as well. As a woman once told me, "I'd leave my husband before I'd leave my OB/GYN."

All you need to break into the small group market:

A list (all you need is a name, and a number to dial by...)
A phone (with a headset, so you can use your hands to take notes/talk)
A script (to keep you from rambling)
A Census Form (saved on C:drive to email to prospects)
A Calendar (preferrably on-line to set follow up calls and appointments)

 

[sman]

I have found BenefitMall to be a waste. The software almost never does what they claim it can do. Calls or emails to my rep are never answered.

WHEN I can get a quote it looks good. Just the other day I tried running a group HDHP on a 10 life group. Came back that KP was the only one available.

Wrong answer.

Called my rep & emailed. That was 2 days ago. No response.

I suppose they are OK for agents that dont know the market but I am just about over them.

I'm with you Bob. I don't really have a problem with the rep, but with the quoting system. I want to see the rates for ALL the carriers available. Not just the ones they feel I should be recommending.

I pretty much run all my own small group quotes. Of course, if there are health conditions, we are still at the mercy of the carrier to put them together for us.

 

[insurebob]

Sman,

Do you think they are going to quote you on a company they don't represent? I have yet to find a company, FMO, that will spreadsheet a small group quote for me. If you know of one, I'd like to talk to them.

I spreadsheet for my own interest, but not to the client. I think it's too much info for them to ingest. I'm the recommender. It's my job to narrow it down to the top one or two.

 

[Sam]

Benefitmall is really hit or miss with their offices. They have been invaluabl to me in Kentucky and in Michigan, but very unhelpful here in MD. For my local cases, I use a company called IMC. They spreadsheet the carriers that are competitive here, and they provide excellent support.

Have you ever tried World Insurance Association? Their home office is in GA.
http://wiaonline.com

 

[somarco]

Never heard of them (WIA). They are right down the street from me. Have you used them, Sam?

What do they REALLY offer?

 

[Sam]

I have only used them once, and it was an unusual case. I was doing a broker of record change on a group in Savannah and I needed to get an immediate appointment with someone. The insurance company directed me to them because they have a good relationship and could process it right away.

They processed it very quickly and I never looked back. However, I do not know if they offer nice support or if they will spreadsheet all the carriers. I worked with someone named Michael Jordan (Really!) but his upline is Michelle Sutter at 678-990-3673. It is probably worth a shot to call.

 

[bcbroker]

good answer!

 

[warrenins]

Thanks for the link Samarco about Allied Brokerage, it looks like they have some good products to offer. If you want a contact at Roger Benefits here in Atlanta I work with Chris Kinely (not sure about the last name spelling) He does a great job for us. Principal has some smoking hot dental rates, are they did anyway.
MelMunch thanks for the WIA link. I believe the Michael Jordan you are referring to used to be with United Healthcare. I worked with him briefly there.

 

[NewHealthStrategies]

Here is some insight for you guys/gals...... small group has been relagated to the transactional process of "quotes" and "new agents" working them only..... because they are a pain in the butt to deal with on a "service basis".....

IF YOU WANT TO MAKE AN IMPACT in small group then you're going to have to come up with something unique that the other 29 newbie agents that are cutting their teeth on small group are NOT saying.

Look at the trends..... HSA/HRA's..... no copay plans and co-insurance.... we're heading back to our indemnity days (which you won't remember, because I'm sure you were born in some year like 1989 or something)... but a lot of the 15 plus year veterans will echo what I'm saying....we're heading back to the indemnity days......

YES... it's all about price.
NO..... it's not!

It's about solving your CLIENTS/PROSPECTS problems and they problem isn't that they can't AFFORD to buy health insurance for their employees....it's that they can't CONTINUE to buy it at the rate it going up....... show them how to get a handle on it through HRA or HSA plan designs..... you'll look like a hero and you'll have a client for live.

FACT: HRA/HSA adoption rates are 3 x's that of 401(k)'s...when they were first introduced.

It's coming......... I had lunch with a Managed Care Exec Dir today from a major hospital network and he said that all their physician groups are seeing more and more self-pay and that the bad debt from self-pay at the hospital went up over 2% from last year.... if you knew the hospital business, you'd see that a hugh (HUGH) dollar amount and number.

Good luck......

 

[Chkndinner14]

I am not new to the field, 14 years experience. Over the years my business has been P & C with health as secondary focus. But, times are changing and health is becoming a bigger part of my business.

I have been semi- active in the small group business (less than 15 EE's) for 7 years.

After reading this thread my question is what do Roger's, Benefit mall really offer? I am assuming it is something since many of the more experienced producers use them.

As far as quotes, I have never done a group quote. I scan the census and email to the company reps, they do the quote and email back. I pick the best 3 and go present.

So, once again what do these groups bring to the table?

Thanks