Even as a P&C broker, you can help your customers relieve the pain of out-of-pocket medical costs
The DBL Center is always on the lookout for creative tools to help you address your clients’ pain points when it comes to essential insurance coverage. While we specialize in DBL coverage and other temporary disability benefits, we know that many of our brokers also deal with major medical.
Even if you don’t, P&C brokers are in a unique position to help their clients address the painful medical renewals they face every year, as coverage levels decrease and premiums rise. In fact, the solution may be easier than you think, and it’s right in the wheelhouse of P&C brokers.
DBL Center President and CEO Michael S. Cohen sat down with Simon Klarides, Director of Business Development at ShelterPoint Life1 to answer our questions on how ShelterPoint Life’s recently updated Hospital Cash program fits in the picture – and to help you sell this commissionable coverage.
Michael S. Cohen: Simon, why do you think Hospital Cash indemnity insurance is a good option?
Simon Klarides: Let’s face it: Looks like high deductible medical plans are here to stay and they are placing more and more of a financial burden on the employees. Although Supplemental Medical Gap policies are not available as a solution in New York, simple, indemnity-based Hospital Cash insurance may present an option. In fact, we’ve configured our Hospital Cash2 product so that you don’t have to go through the full, traditional underwriting process: an alternative, much more streamlined way to get it is by selling it with DBL.
That sounds intriguing, but before we go into those mechanics, can you explain what exactly Hospital Cash indemnity insurance is?
Sure. Hospital Cash pays a fixed amount per day while confined to the hospital for at least 24 hours. This helps with expenses that result– such as copays and deductibles. I remember a Business Insurance article stating that 43 percent of adults said their deductible is difficult or impossible to afford.3
Anyway, our Hospital Cash benefits are paid for an unlimited continuous number of days per hospital stay, and they are paid independently from any other insurance. The nice thing is that benefits are paid directly to covered individuals and can be used however they choose, whether to help with medical bills or everyday expenses like groceries or the phone bill. And what’s even better – our plans cover not only the employee but the whole family!
So how much does Hospital Cash indemnity insurance pay?
New York State regulates the maximum daily benefit by region. The maximum for NY metro areas is $240 per day and $165 per day everywhere else in New York.4 As I mentioned before, there’s no cap for the number of continuous days per hospital stay. Skilled Nursing Facility stays are covered at the same benefit level but are limited to a maximum of 5 consecutive days.
Let’s circle back to how Hospital Cash indemnity insurance can be sold by brokers and in conjunction with DBL. Can you explain, Simon?
Yes! The easiest way of giving clients this coverage is by getting it at time of DBL application. We’ve created a simplified version as part of our BaseLine suite of products that is issued on a non-roster basis with flat per-capita rates – just by checking a box. This means, no enrollments are required while all active employees and their family members are automatically covered.
While Hospital Cash may certainly benefit groups regardless of how robust their medical coverage is, we typically see the sweet spot for this coverage with micro groups that have minimal medical coverage with high deductibles, if any coverage at all. Many times, these types of groups don’t have a benefit broker at all and look to their business insurance broker for guidance. That’s where you can differentiate your approach as a P&C broker to be more consultative and provide extra value to your clients, all while making more commission.
That’s very insightful. Now, for brokers who are looking to sell Hospital Cash, what if their clients already have DBL, whether through ShelterPoint or not?
The BaseLine version of Hospital Cash can be added at time of DBL renewal for existing ShelterPoint customers, and I know your team, Mike, can help with that. For groups with DBL elsewhere or groups that want customized benefits and riders, we still offer Hospital Cash on a traditionally underwritten basis.
Hospital Cash indemnity insurance will help differentiate yourself from other brokers. Call us here at The DBL Center to add this coverage for your existing clients or chat with us about options how to assure that this gets added to your future cases.
Learn more about ShelterPoint Life’s Hospital Cash here.
Reference Notes:
1 ShelterPoint Life Insurance Company, a NY-domiciled insurance carrier with principal office in Garden City, NY
2 BaseLine version of Hospital Cash policy available in NY only and underwritten by: ShelterPoint Life Insurance Company, Form# SPL GHC115 P NY. The policy described in this post provides limited hospital cash benefits only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Department of Financial Services. Lack of major medical coverage (or other minimum essential coverage) may result in an additional payment with your taxes. Policy provisions, conditions, and exclusions apply. Download this BaseLine Hospital Cash brochure for more information on the BaseLine (non-roster) version. Download this brochure for details and state availability of the FlexLine (traditionally underwritten) Hospital Cash version; this version is available in and underwritten by ShelterPoint Life Insurance Company in NY (SPL GHC115 P NY) and MI; ShelterPoint Insurance Company (licensed in 48 jurisdictions, not including NY) in all other available states outside NY and MI.
3 Livingston, Shelby. Business Insurance 11/25/15 and Commonwealth Fund & Kaiser Foundation, 2017
4 Metro New York area: Bronx, Kings (Brooklyn), Manhattan, Nassau, Queens, Richmond (Staten Island), Rockland, Suffolk, and Westchester Counties. All other New York counties are considered non-Metro.