Right Place, Right Time: Healthcare
2006
Nan Andrews Amish, MBA, CLU
It is the best of times, it is the worst of times.
When you look at healthcare trends in the US, most of
us might think that this is the worst of times. Healthcare
costs increases continue to outpace inflation with no
end in sight. Small businesses, self employed, and people
out of the workforce find it difficult to afford basic
coverage. Large and small employers alike feel squeezed
by healthcare costs, even giants like General Motors find
them, well, financially disabling. 81 million baby boomers
in the US are poised to retire and presumably consume
more healthcare services, stressing the system further.
There are 42 million uninsured, yet for the most part,
these uninsured cannot afford to purchase your products,
or at least not and have a roof over their heads at the
same time. There are half a million US bankruptcies a
year driven by uninsured medical costs. And many of the
people who do not have health insurance and need it the
most have chronic health problems underwriters will hate!
Meanwhile, there are shortages of nurses. Doctors are
not happy with restrictions placed upon them by the government
and insurers. Federal and state governments are struggling
to fund Medicare, Medicaid and other health care costs.
Pharmaceutical companies are not pleased with US residents
purchasing drugs in Canada, cutting their profits. Politicians
here are frustrated with discontent over disparity of
drug prices between the US and Canada. In short … no one
is really happy! Some might say, healthcare looks pretty
bleak -- stick to selling investments or offering other
HR value!
On the other hand, never before has the American public
been more aware of the importance of healthcare and the
fragile nature of employee benefits. Layoffs, downsizing,
rightsizing, RIFs, outsourcing, rightsourcing… the beat
goes on. Retirement carries more risk. Employers faced
with increased competitive pressures are continually looking
at creative ways to offer competitive benefit packages,
sometimes cutting retirees benefits or ceasing to provide
healthcare to retirees entirely. Never before has the
American public been more aware of the cost of healthcare.
Surveys of CEOs in major business publications state that
the cost of healthcare is one of their top three concerns.
Not a single week goes by, that the topic of healthcare
and/or retirement does not grace almost every major newspaper
and business publication. People WANT to talk about healthcare,
benefits, long-term care, because everyone knows someone
who has had financial challenges, because of healthcare
costs. Companies want to talk to anyone who can address
their top concerns with REAL solutions. When was the last
time people wanted to talk to insurance people. Like never?
How cool is that, if we make your livelihood solving the
significant problems of healthcare and benefits?
Recent studies published by AARP and the Wall Street Journal
suggest:
-
79% of Fortune 500 CEOs say healthcare
benefit costs are one of their most pressing problems
-
59% of employees believe that
they are paying more for their healthcare today
than they did 2 years ago
-
28% of workers are not confident
they will have sufficient money for medical expenses
in retirement
-
The average person who retires
at age 65 will pay between $200,000 and $300,000
out of pocket in their lifetime to pay for medical
costs not covered by Medicare, if they do not
have additional retiree health coverage.
This is great news for agents. Has there ever
been a better time in history, when people WANTED
to speak with insurance agents more? Who would have
thought that insurance would be HOT?
This is career boosting news for compensation and
benefits professionals. When CEOs are paying attention
to your work, you have the opportunity to offer
solutions that make a direct impact on your organization's
bottom line, fast!
So the trick is to capitalize on the trends and
capitalize on the political environment, in a way
that is easy to capture more sales, and providing
better benefit solutions, while providing something
everyone wants. We need to understand the healthcare
crisis to be able to frame the issue for action.
How to win in the current environment? Here are
a few fast thoughts.
1. Take a page out of the Tylenol Play Book. Know
the facts. Do your homework. Then, be willing to
speak with anyone about healthcare and benefits.
Everyone is concerned. No, you probably won't get
rich speaking with the couple without insurance
who went bankrupt because of their preemie twins,
and yes, I know that speaking with people about
healthcare might not be in your job description.
Be an expert on healthcare anyway.
2. Offer disability and long-term care insurance.
Whether you are on the sales side or the corporate
side of the desk, this provides a solution to a
statistically high percentage of people. With all
the publicity of uninsured population and the costs
of healthcare, this sale is easier than ever before.
And in an age of dual income families, and many
marriages which end in divorce, disability and long-term
care cover our own tails. These offerings tend to
appeal to even to Type A Workaholics, and the most
selfish among us. They will resonate especially
with organization's top talent: the 35-40 year olds,
who are in prime earning years, and whose parents
have started to have health issues. Long-term care
will resonate with the 40-50 year olds (your senior
team) who are realizing that their own parents will
live longer, and that again, you can only purchase
this when you do not need it.
3. If you have an installed base, develop a healthcare
"audit" to offer all your existing clients and groups.
If you are in a corporate position, consider offering
tools to help employees assess their own benefits
and financial planning. Partner with local experts.
What a great way to provide service and open a heart
felt dialogue with your clients/employees. Let them
be grateful that they are getting this important
value from YOU.
4. Be creative. Have a portfolio of offerings from
individual products, group, HSAs. People who are
worried about healthcare costs may not need health
insurance per se. This is about more than just reimbursement
for drugs and surgery. They may not have solid disability
coverage or long-term care coverage. It's a funny
thing. If there are left over medical bills, you
really do not care if you paid them off with Blue
Cross, a disability benefit, a cash value or a 401K.
The key is to not have a health crisis, followed
by a second crisis about paying for the first crisis.
Integration is the name of the game.
5. Know how to assist special risks. Whether you
do it yourself, of pal up with folks who specialize,
helping people who have not been covered in the
past builds loyalty (and referrals) like magic.
6. Discuss risk and insurability. Ask people if
they ever watch Suse Orman. She has a habit of telling
everyone to wait to purchase insurance till they
really need it. Trouble is, by the time you need
it you will not qualify for it. Not to mention that
as our pharmaceutical colleagues get more successful
in convincing doctors to prescribe drugs earlier,
even as preventative measures, underwriting departments
may be less and less likely to write standard priced
coverage.
7. Open dialogue on portability, ownership and control,
even if you are on the corporate side of the desk.
The message is that ownership is good, portability
is good, but the only time you can buy insurance
is when you are healthy enough to qualify for it,
when they are embraced by group underwriting. That
is now. Let them feel the pain (make them sick)
of not having coverage, then make them well (buying
coverage for keeps).
8. Offer needs-based coverage/benefits. Have integrity
and class. Don't push the same thing to everyone,
and resist the temptation to churn for the sake
of a commission. Know the sweet spot of your offerings.
Be authentic, even when you are sharing the party
line.
9. Be your own best walking commercial. Own your
products. Sign up for your company's optional coverages.
(I wish I had sold myself more, when I had the chance!)
So is it the best of times? Or the worst of times.
Seems the answer is "Yes" … (not either/or, but
both/and). It is a tough, competitive environment,
and healthcare is one of the wild cards. Own the
expertise, be part of the solution. It is nice being
in the right place at the right time. Take advantage
of the times and see your reputation grow.
(1435 words) Copyright © 2005-2008 Nan Andrews Amish. All
rights reserved.
Permission to reprint this article is granted, provided
original author is given credit, and contact information
and mini bio are provided as follows:
|
Author: Nan Andrews Amish, MBA, CLU
Big Picture Healthcare
 |
|
Nan Andrews Amish is a management consultant,
facilitator and speaker with expertise in healthcare
economics and market research. Nan Andrews Amish
and Big Picture Healthcare offer facilitation,
member surveys, management assessments, tools,
workshops and keynote addresses to help associations,
leaders and teams increase their effectiveness
by seeing the Big Picture Perspective.
|
The Big Woman with the Big Picture Perspective.
phone: 650 560-9800 toll-free 800 858-1750
www.bigpicturehealthcare.com
|
|