Don’t be fooled

First of all I want to declare that this is not a commercial for any particular carrier or health plan.  This is simply an observation made over the past 6 months taken from dozens of meetings with employers both small and large.  But the information below may be critical to your growth or your survival.

I want to talk about sales opportunities in the small group medical market.

I realize that as you read this, SCOTUS is listening to arguments concerning the constitutionality of PPACA.  I also realize that the standard thinking of the day is that rates have flattened out so employer’s rate increases have leveled out so no one wants to move their health plan.  But, let me assure you that I understand all that and that I have not lost my mind.  Here’s why……..

Let’s review the facts.  Employers have just lived through 7 years of double digit rate increases that were only slightly mitigated by benefit decreases.  Any rate increase, even 1%, is an increase to an already bulging rate so there lies the first opportunity!!!

Incumbent brokers are feeling relief, after 7 years of delivering double digit increases, and are telling employers that finally their rates have stopped increasing and so this year we can leave the plan alone.  Brokers of Record, everywhere, are consulting with their clients and telling the employer that this year the employer can just stay put.  There lies the second opportunity!!!

No one should assume that any employer is currently satisfied with the cost or the benefits of their existing health plan.  Whether the employer expresses this dissatisfaction or not one should assume that the employer is just waiting for a better idea for a health plan and in the back of their mind they know that one exists.

So, in walks a prospecting broker, hungry for new business and armed with Employer Driven Benefit Plans.  This prospecting broker shows the dissatisfied employer that there is another way to finance their group health plan.

The prospecting broker explains to the employer that 50-70% of the employer’s employees hardly use the plan, if at all, so if the employer installs an Employer Driven Plan the employer can lower its premium and only pay for claims if they are incurred.  The prospecting broker just became the incumbent!

Even if the employer does not enroll in this newly discovered Employer Driven Plan the employer will be impressed with the prospecting broker.  So the employer will ask “Why didn’t my current broker show me this plan?”

If an employer asks that question then the employer will surely sign a BOR.

So, the point is that just because the market appears to be flat do not be fooled by it.  Employers are fed up with the status quo; Employers are willing to finance their health plan in a new way if someone just shows them how.

Shouldn’t you be the broker to show them how?

As I stated upfront, this is not a commercial for EDHPs.  Sell what you want but the advice is this; do not be fooled into thinking employers will not change plans during 2012.  This could be a prospecting broker’s biggest year yet!

 

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One Response to “Don’t be fooled”

  1. Lily Says:

    “Dont be fooled | Mark Reynolds, RHU” actually got me simply addicted
    on ur web-site! Idefinitely will wind up being returning alot more
    often. With thanks ,Lin

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