There’s no denying that Health Care Reform (HCR) has dealt a massive blow to the individual health insurance distribution channel. Many brokers are pondering their future in the business today. Various HCR items have created challenges, including; mandated lower commissions, higher premium rates, guaranteed issue rules, unavoidable media discussion of Obamacare which has created a public with unrealistic expectations. With all of this doom and gloom on the horizon for the brokers marketing individual major medical plans is there a way to make lemonade out of lemons?
National Health Interview Survey, January - September 2009
HCR has also created significant opportunities in the marketplace for brokers to not only survive but flourish. Major Medical policies are expected to double if not triple in premiums by 2014 due to HCR‘s changes. We all have heard about the 46 million uninsured people in America today which is growing significantly. Why is it growing? HCR was supposed to help… Is it because people cannot access coverage due to preexisting conditions or is it because they cannot afford coverage? The reality is; the majority of the uninsured’s in America want and need Major Medical insurance but they cannot afford it. Many times brokers will provide Major Medical quotes to clients only to see them leave angry due to high cost. Brokers need to ask themselves are we doing our clients a service by advising them only to purchase Major Medical if a large portion of the population cannot afford it? Is it better that they do not purchase coverage at all or is it better they have a plan which provides limited coverage? The answer is pretty clear and even the government conceded and created a waiver system for limited medical plans due to the large number of participants. If they didn’t the uninsured population would increase once again. The uninsured marketplace is growing and they are interested in having some sort of coverage even if it is limited. The brokers who embrace this opportunity and understand that offering a lower costing alternative plan like limited medical indemnity will not only help clients but will survive HCR and flourish in the future to come.
Limited Indemnity Medical policies offer a valuable alternative to those who cannot afford Major Medical coverage. Sales have grown substantially this past year for those brokers who understand how these plans can help. If you are one of those brokers who have stubbornly avoided these plans you better take another hard look at them. It is true that some of these plans (organizations) are not designed to offer a good value to the consumer (designed only to make money and deceive); which is why many brokers have avoided them in the past. Don’t believe this is the case with all Limited Indemnity Medical plans; some offer significant value for the cost and it is important to analyze and pick the best partner which markets and administrates them.
Here is our pitch… Core Health Insurance plans are designed to offer value and help people. Value is easy to sell, administrate, and retain. Plus, you can feel good understanding that you were able to help them with their needs. They are affordable starting at $91.78 a month and Guaranteed Issue for those who have been denied major medical. So next time you offer Major Medical and they do not purchase anything; you need to ask yourself if you have helped your client. Is it better to have something rather than nothing?