We Will......survive!
- Thread starter Yagents
- Start date
Well, the variety of plans with agents included, will only be good for agents, if they pay renewals.
I'm glad ya'll are so excited about it. I think the whole thing is kind of stupid.
I'm glad ya'll are so excited about it. I think the whole thing is kind of stupid.
again... the more of a cluster muck this is the better for us..... keep on keeping on HHS.... get it so confusing that only agents licensed since 1993 and living in dallas/ft worth can understand it.... a brain surgen makes top dollar because he is a brain surgen, not a family practice guy...
HealthBroker
Expert
Agreed!!!
Trying to figure this out now is virtually impossible. Because the FIXERS are still FIXING. But one thing is for certain. The BUYING public (the ones that really care about quality health coverage) will need agents more then ever. Conversely everyone that wants to buy Major Medical for $49 a month will run to the exchanges and stand in line for subsidies . . . and hopefully stop wasting our time.
Look at FEDEX or UPS as opposed to the United States Postal Service. I don't think that the Post Office has hurt them.
Why? Because FEDX/UPS has a niche . . .. . .and USPS can't compete in that niche.
Point being . . . about 18 months ago when all this mess started I looked for the opportunity.
Here is what I do:
When I take a lead I happily accommodate the prospect with health insurance quotes. However, explain to Mr. Prospect that Health Insurance in itself is necessary, but only a part of the solution.
I continue to advise the Mr. Prospect that if disaster strikes, major medical alone will only pay the Doctor and the Hospital . . . and I ask the following question:
"Mr. Prospect if you had to stay at home for 6 months for an illness how would that affect your ability to pay your health insurance premiums, mortgage, car payments, groceries etc. etc.?"
The answer I get most of the time is . . . "I would not be able to!!"
I continue to explain and I quote . . . "Mr. Prospect, I am not trying to get you to spend more money . . .just spend the same amount and get comprehensive coverage.
Obviously not everyone buys in . . .however a lot of clients are appreciative of the "HEADS UP" and include CI or something similar with the major med. . .and I have a much happier client. . . .not to mention a higher comp.
This may not work for everyone but I hope it helps some of the agents that are having a tough time just selling major medical.
excellent advice-I've been able to keep my health-related earnings at the same level as pre-PPACA simply by putting additional focus on CI and Accident plans. I've done it because I also believe in the value of those supplements-clients are far better off with a $5K deductible and supplements than a $2500 or a $10K deductible and supplements than a $5K plan with nothing.
Can you please explain how they are better off? In another thread about CI, I mentioned that I'm interested, but I have no experience selling CI or accident. Let's say the example is a male age 38, spouse age 36 and 2 kids. What is the premium in your state for a $2,500 deductible plan (let's say just a popular copay plan in your state)? Then, what is the combined premium for a $5,000 deductible of the same plan design with CI and accident? Why are they better off buying the higher deductible plan with CI and accident policies?
- 9,744
C'mon silly. It's because the agent's compensation is higher. The client? Who cares about them?
- Thread starter
- #58
Given this situation, for years, BEFORE comp changes, I've been recommending raising the deductible one notch, and adding an accident policy.....predominantly for a young family like this with budget issues. Not so much a critical illness policy. They are young and healthy, but ACTIVE with kids. If this family's risk of accident vs. a major illness (disease specific), is 70% 30%. This combo insures their particular risk better.
Broken arm: Still paying $2500 deductible on copay plan. Compared to paying $0 (or $100 ded) for broken arm with $5000 plan with $5000 accident policy.
Couple in their 50's, the risk changes to 50/50 and CI becomes more attractive. I just wrote a 5k CI for $14/mo for a 40 yr single male father. Has history of other health issues. But he wanted cash to live off of (mortgage, food) god forbid a CI happens. And screw the hospital bill for the deductible.
Ann, it has little to do with compensation, according to a study published by Harvard Law School, almost 87% of all medical claims are due to either Accident/Injury or Critical Illness. There are multiple sources pointing this out, I don't have time to research more of them but here is just one: http://www.ismflex.com/fhp/FHPpackage.pdf
Since most health insurance plans have the same coverage (copays, etc) for plans regardless of deductible I would rather have my clients in the position of eliminating the deductible (and saving premium $ each month) for 87% of potential cause of their claims than paying extra $ each month for a plan with a deductible they most likely won't reach anyway unless they have a hospital stay. I've even added some Hospital Indemnity plans that paid the 1st $2K of a hospital stay, particularly if the wife might have a child-unfortunately, Humana is dropping that product as of tomorrow.
By the way, Critical Illness coverage is really overlooked in the U.S., 69% of all claims are due to one of them. Add to that lost income during recuperation and it becomes a necessity, IMO, rather than an option.
As for local rates, Blue Cross plans with $2500 deductibles range from $497-$704 per month. Plans with $5000 range from $357-$417.
Accident coverage adds $26 per month and $20K of Critical Illness for both husband and wife adds another $28 per month (these are Blue Cross rates for their new plans and the CI has a recurring benefit-the rates are so much lower than everyone else it's ridiculous).
Blue Cross plans now have copays for everything except inpatient hospitalization, even outpatient surgery, so the deductible truly is only for a hospitalization.
I can't speak for other agents or other states, I just do what is right for my clients and adding the supplemental benefits really makes sense for them.
I can send you the exact quotes if you like, just PM me.
Since most health insurance plans have the same coverage (copays, etc) for plans regardless of deductible I would rather have my clients in the position of eliminating the deductible (and saving premium $ each month) for 87% of potential cause of their claims than paying extra $ each month for a plan with a deductible they most likely won't reach anyway unless they have a hospital stay. I've even added some Hospital Indemnity plans that paid the 1st $2K of a hospital stay, particularly if the wife might have a child-unfortunately, Humana is dropping that product as of tomorrow.
By the way, Critical Illness coverage is really overlooked in the U.S., 69% of all claims are due to one of them. Add to that lost income during recuperation and it becomes a necessity, IMO, rather than an option.
As for local rates, Blue Cross plans with $2500 deductibles range from $497-$704 per month. Plans with $5000 range from $357-$417.
Accident coverage adds $26 per month and $20K of Critical Illness for both husband and wife adds another $28 per month (these are Blue Cross rates for their new plans and the CI has a recurring benefit-the rates are so much lower than everyone else it's ridiculous).
Blue Cross plans now have copays for everything except inpatient hospitalization, even outpatient surgery, so the deductible truly is only for a hospitalization.
I can't speak for other agents or other states, I just do what is right for my clients and adding the supplemental benefits really makes sense for them.
I can send you the exact quotes if you like, just PM me.
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