by Ivy Silver
Integrated benefits may benefit your group insurance clients and you.
If the producer has spent any time in a Target, Wal-Mart, or other superstore recently, he or she might have an idea about why the concept of integrated benefits is gaining ground in the employee benefits arena; it's easiest to shop in one place with almost everything a person can want and need.
Human resource departments have less time and fewer resources than they used to, so having complicated group insurance plans with multiple providers and many moving parts is less attractive than a streamlined one-stop shopping alternative. And, like a consumer at a super store, employers are looking for value and high quality.
Producers interested in selling more integrated benefit packages can increase their chances of success by remembering these tips I have learned from experience:
- Price always matters.
The cost of benefits is foremost in the mind of the decision maker. When the producer can explain the long-term advantages of using an integrated plan, he can address the cost question directly.
- Remember the employees.
Despite the emphasis on cost, employers do care about the quality of benefits available to their employees. Often employers don't understand how employees use benefits, so it is difficult for them to judge what will and will not be valuable to employees. One advantage of an integrated program is that the employer who adopts it can get a more holistic view of the experience trends of their employee population.
- Eggs are eggs.
Some employers object to the idea of putting all of their benefits with one company, all their eggs in one basket. They worry that placing all their benefits with one carrier opens them up to a risk of problems if one product affects the whole plan. In these cases, I point out that there's a risk that things can go wrong regardless of whether there are several carriers or one. The real issue, I say, is how easy is it to get a problem resolved if something goes wrong.
- Lead the pack.
Even though there has been a lot of talk in our business about integrated benefits, not a lot of it actually is happening. The producer can lead the pack by learning about what works and what doesn't work and then bringing this expertise to the table. The producer's ability to assess various options and provide insight will set him or her apart from the crowd.
What's in it for the producer?
Integrated benefits offer many advantages. There usually is a single source — an individual or team — that handles all elements of client management, including problem resolution. This saves time and money. By using one carrier when looking to place multiple products, the producer may find more pricing and underwriting flexibility. Also important, the carrier, and not only the producer, will have a better understanding of the account nuances and can respond accordingly. And as long as bonuses and overrides stay put, it can be financially rewarding for the producer to sell multiple lines from the same carrier.
There are no shortcuts to delivering a truly integrated benefit program, and it is not the right solution in every case. Many carriers talk about their capabilities, so if the producer has not already investigated them, he should do some homework. The beginning effort will make a difference regardless of whether the producer wants a new relationship or to offer an existing client a new perspective.
Again, it's up to the producer to discover which carriers know what they're doing. The super stores are so successful because they know what their customers want to buy, they have mastered the science of inventory control systems, and they have built their business processes around ease, efficiency, and consistent experiences. The producer's due diligence will help him determine whether a carrier is cobbling a program together or whether it actually has created a seamless process to tie different benefits together behind the scenes. Most important, the producer will be well prepared to address a client's questions and concerns about both costs and risks.
Producers should look beyond brochure language for evidence that the pieces fit together. If a gap is apparent, it likely will be apparent to clients. A seamless approach can be observed in eligibility, billing, claims management, and most important, customer service training. Producers should ascertain whether one person or a team of people can address questions across a wide range of products. Even if there isn't one know-it-all, a company representative should be able quickly and consistently to access experts who can provide the answers clients might need. The producer must make sure he knows how things work in detail before he starts pitching this idea to a benefit manager.
How are cases installed?
The producer should inquire about the installation process. Even though there might be a team of experts involved, the emphasis should be on a team. The producer doesn't want to subject his client to a series of disjointed processes. Benefits that are introduced off-cycle from traditional enrollment periods, such as long-term care, should be considered. In this case, the installation can be phased in, but the experience should be consistent and the pieces all should hang together. If they don't, there is no advantage to an integrated benefit plan.
The producer should investigate:
- Whether cases are managed in a seamless manner.
- Whether employees and medical providers have to complete only a single claim form.
- How this information is retained and managed by the insurance carrier.
Going back to the super store example, this is like the checkout line. A person doesn't expect he'll need to go to a different cashier if he is buying cereal and bread. Connecting products on the claim form takes much behind the scenes coordination, but it is the ultimate symbol of integration. If the producer can demonstrate this level of integration to a prospect, he can move the conversation away from doubts and concerns into a discussion of the advantages integration might offer.
Leading Edge Integration
If the producer wants to be progressive, he'll educate himself about the new generation of integrated health and disability benefits. By connecting these two ends of the spectrum (health care and disability management), some carriers say they can help keep disability claims in check by increasing the likelihood that an employee will get appropriate treatment earlier in the course of an illness or during treatment for an injury. In the simplest terms, by looking at a person's situation holistically, the carrier can identify opportunities to intervene earlier than is possible when health and disability plans are not connected. This perspective can help care providers develop a treatment plan that might help limit the duration of a longer term disability or prevent it from occurring in the first place. It can get complex, but it's worth learning about.
This approach to integration also can shed some light on what might be considered a kind of "black box" to employers — the experience trends of their own employee population. The more an employer can understand how employees use benefits, the better informed the employer will be when it decides what plan design would be best for its employee benefit program. Even though cost often is a large part of the discussion, employers do care about the kind of care and benefits employees receive. Producers prove their value as more than only salespeople when they help a client find ways to manage this aspect of their business better.
Getting Started
The next generation of integrated benefits must be road-tested in the real world, and producers should expect to participate in the trial period. I wouldn't want to promote a concept that had not been vetted with at least a few clients so I could make sure that what worked on the drawing board works for my clients.
Every employer has its own quirks and complexities. The solution can't be customized for everyone, but the design of an integrated plan must be flexible enough to accommodate the most usual necessary adjustments and adaptive enough to be a good alternative to separate benefit plans. It's difficult to know what those adjustments might be unless such a plan is tried with a few employers. If "test" clients are chosen carefully, they'll see the producer as someone who brings them new insight and works with leading edge carriers.
Finally, I suggest that if the producer wants to sell integrated benefits, he should find a carrier that will work with him and test it with a good client. It gives the producer and the employer an opportunity to learn about the concept before it is taken wholesale to other clients.
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