While some are praying that National Health Reform will be overturned after this November’s elections, most agents are preparing for the worst:  Public Health Exchanges eliminating the need for most of us in the under 50 employee market, and reduced commission opportunities in what will be a crowded agent arena in the 50+ market. 

But, as one door closes, another opens for those who embrace opportunity.  Here’s what I mean:  Many experts believe National Health Reform will end up being a single payer government program.   They suggest it looking like our “other” National Health Plan…Medicare.  Everyone will receive some “core” benefit program and be allowed to purchase supplemental GAP insurance programs to fill whatever holes the National “core” program creates.   

So, where is the upside for current health insurance agents?  Simply, you now know the exact date that any business transformation you might be considering has to be completed.  Its 4 years from now, 2014.  And, you know what products folks will be buying in bunches in 2014.  So, you have time to create a new, profitable, low service business model to replace the profit you currently pull out of your agency.

Notice, I didn’t say “income to your agency”, but rather, profit from your agency.  Worksite benefit products will generally require far less staffing than you are currently used to, allowing you to earn less, and keep more.

OK…what’s the suggested game plan?  I recommend health agents partner up with AFLAC independent agents and cross mine each other’s client base, offering Group Medical “GAP” insurance as the door opener.

You may want to pause for a moment to collect yourself.  Yes, I did suggest partnering with AFLAC agents!  Think about this:  they understand worksite benefits better than most health agents and have lots of clients to refer you into if you can offer them a Unique Selling Proposition (USP).

Here is my USP:  “we save you money, improve your benefits, all without changing Insurance companies.”  When asked to tell them more, I add that we typically save $1,000 for every employee on their health plan while providing 1^st dollar coverage for all employees. 

Some of you might be asking, “How can he do that?”  We create sensible National Health Reform plans available today, we don’t wait for 2014.  How we do it: We increase deductibles (we like $5k plans), then enroll $5k GAP plans to cover most deductibles.  Typically, we are saving clients $1,000 per employee annually.  (For actual case examples, visit our website, www.cheltenbenefitsgroup.com).

We share the account and its commissions with the AFLAC agent.  And, with the savings we create, we enroll Prepaid Legal services for ALL employees, LTC coverage for the Company Owner and spouse, and return the rest to the Company.  We now have an AFLAC partner; we have saved our new client money, and improved their benefits. 

The AFLAC agent can become your unofficial worksite product department.  They or you can extend your voluntary product offering to more carriers, giving you the same independent reputation in worksite that you already have in group.  The point is that you now have an interdependent, profitable relationship and by 2014, your employee head count should be large enough and profitable enough to weather any economic storm.

To learn how to create a winning, profitable partnership with a worksite insurance product agent, call me at Chelten Benefits Group, 248-464-6544 or email me at Dick@CheltenBenefitsGroup.com

Dick Chelten, CLU, ChFC, RHU