Death of The Status Quo Health Insurance Salesman

When you came in here you claimed you can SAVE US MONEY. But you really can’t can you? 

Believe it or not, there still exists health insurance brokers plying their trade the old fashion way. Their average age is 50-60. Their prospecting sales pitch is old, flat, yet still effective (most of the time).

CONVERSATION BETWEEN STATUS QUO BROKER AND STATUS QUO EMPLOYER

Agent: Hi! If you let me quote on your business I am sure I can save you money! What is your annual spend towards health care Sir?

Employer: We are always interested in saving money. We just got notice of a rate increase and our cost is going up 25% to over $4,000,000!

Agent: That’s outrageous! I can get that increase down, saving you probably $500,000 or more.

Employer: Great, Let’s get started. What exactly do you need to quote?

Back in the day selling health insurance plans was simply a numbers game. Call on enough prospects with the same message (I WILL SAVE YOU MONEY) and the sales roll in. Quote ten groups and you end up with 1 or 2 new clients. Once you gain 10-15 client groups you’re set. Every year, with health insurance rate increases, your income goes up by the same exact amount. All that is needed at this point is to replace those groups you will inevitably lose to the competition on renewal.

Of course sales success for status quo health insurance brokers is dependent upon status quo plan sponsors. Both are a perfect fit.

However, we are now seeing a new breed of plan sponsor rising in the market.

CONVERSATION BETWEEN STATUS QUO BROKER AND NEW ERA EMPLOYER

Agent: Hi! If you let me quote on your business I am sure I can save you money! What is your annual spend towards health care Sir?

Employer: How are you going to save us money?

Agent: Well, I represent all the major carriers, and will play one against the other, beat them down to their best and lowest price! That’s my skill set. That’s the value I bring to the table. If I can’t save you money you will at least know you have the very best deal you can get. And I don’t charge you to go out to the market to solicit proposals. I do that for free!

Employer: How are the carriers going to save me money?

Agent: Through competing for your business. Plus some carriers have bigger discounts than others bringing significant savings to your plan! And that brings up another point, you will want the broadest network of providers for your employees and I will make sure that happens.

Employer: That still doesn’t tell me how you are going to save me money.

Agent: (Exasperated) Believe me, I will SAVE YOU MONEY if you just let me try, please sir?

Employer: Look, you are not going to save me money. And, provider access is not an issue with us. Let me explain. We decide how much we are going to pay providers. Our members can seek care anywhere they wish. The only way you are going to save us money is to convince me to pay less than what we are paying providers now. And that’s not your decision, it’s mine, I set the price and no one else.

Agent: (Confused) What! I don’t understand. What kind of plan do you have?

Employer: We have a full ownership plan. We own it. We control it. We decide what’s covered and what we will pay for services. We believe in freedom, freedom to choose any provider of choice. We believe certain providers provide better quality care than others and reward our members who voluntarily seek services from those providers. When you came in here you claimed you can SAVE US MONEY but  the truth is you really can’t can you?

 

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