Why You Should Be Selling Non-Insurance Health Care Programs- A letter to Insurance Agents *AND* for the benefit of employers, third-party administrators, and anyone wanting to explore their options for reducing costs for healthcare As a health insurance professional, you get a lot of valuable information on helping your group insurance clients reduce and control costs. The new buzzwords in our industry are "defined contribution", "purchasing alliance", "choice", "concept sale", and the like. Employers are being asked to apply better budget controls through cost shifting premiums and leaner plan designs, and still offer choice to employees. Low co-pay plans are quickly becoming expensive dinosaurs, which are out of the reach of most employees. The trend will leave only the choice of expensive leaner and premium cost-shifted health plans. Manage care can no longer control costs. Only those in denial cannot see this coming. Many health plans have terminated services in areas deeming them not profitable. Some employers are even dropping healthcare as a benefit altogether. Others who would like to offer it find it ever more difficult to do so. The managed care health plan industry is racing to redesign product lines to stay competitive and create cost effective and cost shifted solutions. All the while, they are talking as if they are being proactive when in reality they are only being reactive to the crisis. The are tweaking old problem solving methodologies that provide only short-term relief, but no real long-term solutions. Most health plans have done little to anticipate this crisis or develop products ahead of time to meet it, leaving brokers, employers, and employees in a terrible bind. The majority of health plans are running two years behind trends as they continue to fail to look forward beyond the immediate crisis. A law of business tells us that those who fail to adjust to a changing business environment and marketing climate become extinct. All healthcare trend indicators upwards of 20% premium increases per year for the next three to four years. Don't buy into that, double-digit rate increases are here to stay for the long term. There really is no predictable end in sight. With soaring Rx and hospital costs driving premium increases, the Baby Boomer generation aging, wages increasing in the healthcare industry, the growth of expensive medical technology continuing, people living longer, and legislation mandating and regulating benefits. These factors are putting tremendous price pressure on the cost of healthcare now and forever more. Healthcare makes up 14% of our nation's GNP and is expected to move to 20% by 2008. Estimates are that upwards of 45 million Americans have no healthcare and that 50% of employers do not offer it as a benefit. Therefore, a free market revolutionary change is in order. Avery competitive alternative approach to this dilemma is in non-insurance healthcare savings programs and non-insurance healthcare discount plans. Many brokers worry about the future of their businesses as healthcare costs are soon to double. Many see the future as a place of threatened financial security, powerlessness, limited short-term band-aid solutions, and nothing but problems. But, the forward-thinking broker sees a gold mine in the rise of non-insurance healthcare programs as an alternative healthcare delivery method. A non-insurance healthcare program is designed to provide inexpensive healthcare alternative and provide quality healthcare services. Such programs give their members the same reduced rates that PPOs charge insurance companies. The companies that market these programs do not finance the medical expenses of their members by charging high premiums. Members agree to pay the medical provider at the point of service; but at a much lower rate than would be charged if such a program were not in place. It is crucial that the member understands that payment must be made at the point of service or the savings will not be applied, and that the program is not insurance. Savings generally range from 15% to 50% on doctor, hospital, and ancillary services, and sometimes more depending on how well the company practices medical bill re-pricing. The better programs are contracted with national size PPOs giving their membership access to hundreds of thousands of providers and thousands of hospitals nationwide. Plus, the same favorable contracted rates that insurance companies have been enjoying for years. There are many types of these programs in the market place. The more marketing intelligent companies offer four or more product designs with different service options in each program so members can select as many services as they need. Costs vary among programs. The less comprehensive programs usually start at about $10 a month with the more comprehensive programs generally costing less than $60 a month. A good comprehensive program will include services for doctor, hospital, ancillary services, dental, vision, Rx, chiropractic, hearing aids, alternative care, long term care, air ambulance and a 24-hour nurse hotline. Prescription savings are up to 40%, dental savings are up to 80%, and vision savings up to 70%. Since these programs are not insurance, there are no pre-existing condition exclusions, age limitations, waiting periods or annual or lifetime maximums. A discount card replaces claim forms. A comprehensive non-insurance healthcare program represents a turnkey healthcare alternative placing all major services in one source. Most program services are Cafeteria 125 Plan compatible, are well suited for "private labeling", and are adaptable to worksite marketing. These programs work very well with high deductible medical plans since they reduce cost in the deductible corridor. With the right non-insurance healthcare program, you can help almost any company or individual find cost effective, service oriented and quality healthcare. The fact that these programs are not insurance means anyone without an insurance license can market them. Marketers of types types of programs will soon be knocking on your client's doors. They will be presenting ideas and strategies, and addressing needs that many brokers don't know about or are ignoring. When such a marketer is paired with a licensed healthcare professional, there is new competition to a broker's client retention capabilities. Another powerful and competitive marketing tool is network marketing. Many people are building large and profitable multi-level marketing organizations with non-insurance healthcare programs. The future-thinking broker will become directly involved with network marketing or will work closely with those that network market these programs, with the idea in mind to open new markets for their already established insurance services. The broker who can capture a vision for this will receive an endless lead stream. What is one broker's rejection of this marketing system is another broker's competitive cutting edge. There are a number of due diligence factors to consider with these programs, with five being essential:
Finding a company that meets these criteria takes research and a willingness to rethink how healthcare delivery is approached. With non-insurance healthcare programs, a broker no longer has to practice this profession in a reactive mode, which stifles the entrepreneurial spirit. You can now practice free market entrepreneurial healthcare advocacy and avoid going the way of the dinosaur. Based on a promotional ad for Nevins health insurance broker and employee benefit plan consultant. The company designs creative alternatives and solutions to rising group health insurance costs. Employers:Won't you take a look at our for your non-insurance health solution? www.CreativeHealthProgram.comor call us at 1-877-388-1640 Be sure to look at our F A Q - Frequently Asked Questions section! Insurance Agents & Brokers:Explore Your Options
or call us at 1-877-388-1640 Individuals, Families:Explore Your Options SAVE MONEY - EARN MONEY
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