Want a Zero Deductible Health Care Plan? Here’s How!

Shhhh. . . did you hear that?

 

Quietly–maybe even while you were sleeping–a revolution in the insurance industry began to occur early last year. Old ideas were abandoned, new ideas adopted, and new choices came into focus.

Now, I know what you’re thinking: You’ve heard all you can bear about the Affordable Healthcare Act and its wonders. Well, that’s not what this  post is about. It’s something about which you may have never heard a peep.

 

Deductible Insurance.

That’s it, in two words.

Sure, it has a longer name on the marketing materials, and someone stayed up all night to think of what to call it, but we’ll just call it what it is.

Deductible Insurance.

Something new. A new choice for your family protection portfolio, and even more necessary in today’s high deductible landscape. Here’s how it works:

 

 

The old way of doing things is lost to the market now–probably forever–but it involved an “up front” approach to healthcare via higher coverage and higher premiums. The deductible was low, and co-pays kept office visits to a predictable cost. Those same premiums, however, never really stopped getting higher and higher each year. Supplemental coverage was difficult to justify with such high cost of coverage.

 

 

 

 

The new way keeps premiums stable–or at least is supposed to–while taking some risk on the back end that we are generally healthy except for unexpected occurrences. That works well for some, but isn’t an accurate picture for everyone. Deductibles soared to share some of the cost (and risk), while the occasional supplemental plan could fill in a gap or two. Overall costs dropped, but only if utilization was low.

 

 

 

The average amounts for workers with an aggregate deductible for family coverage are $1,743 for HMOs, $1,854 for PPOs, $2,821 for POS plans, and $4,079 for HDHP/SOs  -Kaiser Family Foundation 2013 Employer Health Benefits Survey

 

 

“With great deductibles come great responsibility”. –Spiderman’s Aunt

 Okay, not the actual quote, but it works for this discussion. Medical plan deductibles have been sliding deep into the thousands, with family deductibles often hitting tens of thousands. Whatever the reason, this is the reality most of us face or will be facing soon. The risk is transferred almost completely to the insured for routine illnesses and minor injury incidents, while a scary number looms ahead should there be something requiring real attention.

Enter Deductible Insurance. Call it a hospital buy-down, catastrophic confinement coverage, a safety net. Call it whatever you like, but imagine having your entire personal deductible (up to $3000 per event, per person) paid in cash after a hospital stay. Accident, illness, childbirth, on-the-job injury, whatever the case may be. Your out of pocket may even be eliminated altogether, depending on your health plan and coverage. Coupled with an FSA or HRA (if your employer is that awesome), it gets even better!

Imagine knowing that your bottom line is covered, no matter what happens. With deductible insurance it is possible to have that kind of peace of mind. Relax, it’s covered. There is a better way.

 

Tim

 

How To Reduce Worker’s Compensation Claims (and premiums!)

Industry surveys and research reports are a dime a dozen, but some are worth their weight in gold. Here’s a nugget for you, and it’s free to claim. No digging required.

 

 

“A recent survey of more than 600 companies has shown a direct correlation between voluntary accident and disability insurance and a reduction is worker’s comp claims.” -Aflac customer survey

 

A reduction in workers comp claims? How? Why? Let’s take a look at the mechanics of it all, from a policy perspective:

Simply put, it’s a matter of personal responsibility, urgency and ownership. We all know that injuries sometimes go unreported until it’s just too late to ignore them. Minor injuries over the weekend that wait until Monday to hit the reality button. Strains and sprains that may not be work related, but get filed anyway because the aggravation presents itself during the work week. Under no circumstances is the employee intending to defraud or mislead, but the claims do occur because we care about doing right by our employee family.

Imagine a different choice exists for your employees, one where injuries–even minor ones–prompt an immediate doctor visit and filing of supplemental benefits that pay cash quickly for the incident. No hoops to jump through, claims are handled efficiently and promptly (in as little as 4 business days), and the employee receives a cash benefit that is free of strings. When a non-occupational injury occurs, the employee is far less likely to wait for treatment or other medical attention. In this scenario, the employer risk is immediately mitigated and any reporting of the injury removes the association with a workplace event. Because these policies pay claims regardless of the initial injury location, and allow for any medical facility to diagnose and provide care, the employee takes the initiative to seek treatment in a timely manner.

No hoops to jump through, claims are processed in as little as 4 days.

All of this has a secondary benefit for the employer, not just lower worker’s comp claims. The employee has extra money in their budget for immediate use if they miss work. Since follow-up with their doctor is encouraged through the comprehensive claims process, their recovery is not cut short by pressing matters of the pocket. We miss them while they’re gone, but they need to be 100% before things are able to return to normal. Should a true short-term disability present itself, they must be certified by a doctor (thus lowering your risk again) before returning to work. Bills can be paid, stress is lower, and life can return to normal faster.

Don’t offer voluntary short term disability or accident coverage in your workplace or local? You can, and there is never any cost to you to offer them. Why not reduce your risk–and your cost–and offer the most requested supplemental benefits to your employee or union local family?

 

– Tim

Top Five Reasons That Employers Say No To Short Term Disability:

. . . and why none of those reasons are good enough.

Your employees are asking for better benefits. You are looking at the bottom line and don’t see much in the way of options. Perhaps it is time to explore a different way of looking at things. Here are the five most common objections to offering Short Term Disability, followed by the reasons you can offer it, and should.

1.) It costs too much!

What cost? The right partner company and the right plan administration can provide your company with Short Term Disability that is completely free of fees, charges and costs. With a supplemental plan, like Aflac’s, the premium is 100% paid by the policyholder. You can contribute If you like, but it is not necessary. What about rates? Remember, most employees need only cover their basic bills, for a limited period of time. Rates will surprise you!

2.) Too much administration.

Often even more costly than dollars spent is time. Staff is already stretched to the limit, too many projects to run, who has time for one more hat to wear? With the right partner, administration is completely hands-off for your staff. With the exception of reviewing a claim for accuracy when it occurs, the paperwork, applications, filing and upkeep are all handled by your provider. Far simpler than medical, offering Short Term Disability can be reduced to a few mouse clicks each month.

3.) It takes too much time.

Specifically, your time. As in: “I don’t have enough time!” Next time an employee misses work due to an illness or injury, ask yourself how much time it takes to get behind on the bills, miss a car payment, or have to look for another job. The time it takes to offer short term disability pales in comparison to the effects of going without. It only takes a few minutes to set up, a few minutes more to explain, offer, and write the coverage. The most you’re out is a group meeting and brief follow-up. Time well spent!

4.) The challenges of certification and underwriting.

This is the thing most companies don’t learn about until they take a meeting with the wrong company. There is not one “company mold” you will fit in, but it seems insurers want to put your square peg into their round hole to offer coverage. Once again, with a partner like Aflac, this problem is eliminated altogether. Without strings or hoops, it is possible to offer Short Term Disability coverage to every employee who wants it, and to give them choices for affordability. Using simple guidelines for coverage maximums and time periods, even folks with pre-existing medical conditions can be covered, without a premium penalty! Guaranteed-issue exists in the disability market, and it leaves no employee out.

5.) I don’t see the need! 

“My employees don’t need Short Term Disability!” I hear that one often, and I always ask: “Do you make all your employees’ financial decisions for them?” Not meaning to be flippant, but if and when they are disabled for a time, are you going to pay them while they are at home? Vacation days and sick days run out quickly, assuming they had any to begin with.

Short Term Disability is consistently one of the most requested benefits among wage workers and salaried alike, yet less than 40% of employers offer it at all. What is stopping you and your company? Even just offering additional benefits improves morale and loyalty, whether they choose it or not. At the end of the day, everyone wants to be happy, healthy, and on the job. Missing work happens, but missing mortgage and utility payments doesn’t have to. Ask me how to change the game for you and your employees.

The ONE Thing You Need To Do For Your Business, Right Now! (and it’s free!)

When was the last time you had a good picture of your small business service or product? I don’t mean walking the factory, checking in with your managers or running a survey. Those things are good, but the results are skewed at best, just plain misleading at worst. The Emperor’s New Clothes and all that. Sure, do those things when you can, but try this today:

Shop your business. This goes way beyond QC and spot-checking. Take your perspective from outside the door, or at least use the same channels your customers have to use. Take your new imperial clothes all the way out of the building, turn around and engage your business from the street. It sounds easy enough, right? When was the last time you interacted with your own company the way a customer does?

Do you sell products? Buy a few from your sales department. Have them shipped to your home to see the whole process in action. Does your sales team follow up each purchase? Did the shipping department process the order immediately? Maybe your company is a bit smaller, but does everyone look for (and take) opportunities to go the extra mile? Is your latest catalog in the box?

Even a restaurant can do this easily. Call in an order of your best and worst sellers, then pick them up from the counter yourself. Take a look at how your food is presented to a paying customer; you may even understand why that particular menu item is your least popular!

What about your phone system? Is it friendly, up-to-date and functional? You’ve been dialing direct for years, your customers may be hitting the keypad in frustration on their end. Email your sales or support employees–anonymously of course–with a question a customer would ask. See how timely and polite the response is. Call your staff and let them show off their customer service skills.

If you own a service company–no matter how small–you can still experience your company from the outside. Set up a service call, go through the process from start to finish. Do they offer additional services or upgrades? It will be worth it, just to see the look on your employee’s face when they realize you are the customer.

Fortune 500 companies are notorious for letting these kinds of details slip through the cracks. Your edge exists because of that lack of detail, don’t ignore the advantage.

Take a good look at your company, but do it from a customer’s perspective once in a while. Shop your company.

Six Things to Avoid At Your Next Lunch Meeting:

In one way or another, we are all in sales. Whether selling a service, a product, a promotion, or just ourselves, we are all on commission. Here are a quick few things to think about before you set that next “Meet and Eat”. Six things to avoid at your next lunch meeting:

Don’t waste time at your next meeting! Plan ahead whenever you can.

1.) Lunch! Set a breakfast meeting instead. Your clients are busy, you are busy. Lunch is tough to set aside and easy to cancel. Everybody eats breakfast! Pick a place that’s on their way to their office, be early!

2.) Awkwardness: You were early to the meeting, right? Get a good spot, order two cups, plenty of creamer/sugar and a carafe of coffee (if you can), and ask the server to bring one check to ONLY you at the end of the meal. Watch for your guest to enter. Enlist the help of the staff when practical to make your meeting as smooth as possible.

3.) Indecision: Know what you want, order quickly, and get to the point! Breakfast meetings should last about 20 minutes total, keep it simple. It is your meeting, take charge of the details early.

4.) Difficult food: Keep the hands free and the bites small. You should be listening more than you’re talking, but don’t use that as an excuse to order the giant breakfast chicken and waffle platter. You want them to remember the meeting, not the food you ordered!

5.) Visual aids: Don’t risk flailing a brochure or chart around, you may wear your coffee. Or worse, your guest may wear your coffee! Save the printed powerpoint for their office, keep your cool and your clean clothes.

6.) Credit Cards: Yup, I said it. Keep everything simple: Pay cash, tip well, and excuse yourself as soon as you’re both finished. Give them time to themselves to think about your proposal. Don’t risk embarrassment on a card limit or balance issue, unless you are trying to impress with your Amex Black Card. Eliminating this step speeds the whole thing up by a few minutes, no matter how responsive the server is.

Follow up in a timely manner, and thank them for their time. Busy people like to know you appreciate their investment in your day. Give them an idea of when you might want to meet again and they will be happy to join you!