Market Strategies

MWG Broker Services is privileged to work with brokers in all 50 states. We consider ourselves fortunate to have quality agents that are ahead of the curve and provide us with strategies they see working in the market. Each newsletter will contain a "Market Strategies" section which will detail proven sales strategies that are gaining momentum.

Sales Strategy

All over the country companies are raising their health plan deductibles. Earlier this year The New York Times stated, “In 2015, nearly a third of large employers will offer only high deductible plans.” The New York Times goes on to state that in 2015 they are expecting over 22% of large group employers to have a high deductible plan up from 10% in 2010. This is not the first article to point out the reality that companies are looking at raising deductibles to lower their premiums. Bloomberg reported in March of 2014, “Four out of five US companies have raised deductibles or are considering doing so as health costs increase”.  The question becomes how can we, as brokers, advise our groups on ways to maintain benefits and lower their premiums in a market that is seeing more change than ever?

Over the second half of 2014, we observed a surge in agents using what is called the "Premium Saver" to reduce the cost of their insurance. Similar to how Medicare Supplements work with Medicare, a quality group supplemental medical plan follows the benefit structure of the major medical plan while putting in a benefit amount to cover the member’s out of pocket. These plans have been available for quite some time but given the changes to our playing field, we see a huge growth curve ahead.

Premium Saver Example

XYZ Graphic Design Company received a rate increase on their major medical plan. In order to provide benefits for their employees, the company would have to raise their deductible or ask the employees to pay more. The agent for this group runs a $5,000 and $6,000 deductible option to see what high deductible plans provide the best rates to work with the Premium Saver. After looking at the options, XYZ Graphic Design Company chooses a group supplemental medical plan that allows the company to keep their current benefits and save over a month of premiums.

Why is this strategy working?

This strategy has received increasing recognition all over the country. Given the employer’s need to lower premiums and ACA requirements placing increased responsibilities on the employer, the brokerage community is undertaking even more due diligence to make sure they provide all potential options to their groups. Trained MWG Product Specialists can assist you in designing a plan that will fit your group’s needs. We will also share our case study which details our approach to a winning strategy.