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.
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.
Photo by RawPixel.com from Pexels
by Dawn Allcot
The opportunities under Paid Family Leave are too powerful to ignore.
Are you an insurance broker worried about managing the added operational and transactional requirements of New York’s new Paid Family Leave laws? Although the rate has yet to be announced (as of this writing), and no one knows the commission potential, one top DBL carrier isn’t worried — and says you shouldn’t be either.
New York State PFL is one of the most comprehensive policies of its kind in the country offering paid time off and job security for employees. We covered some of the specifics of the mandatory Paid Family Leave benefits here. But if you’re a broker, you probably still have questions. Fortunately, The DBL Center, along with ShelterPoint Life, one of our top carriers, is prepared with answers.
How Much Commission Can Brokers Earn?
Commissions will depend on the rate, which is yet-to-be-announced, although we’re expecting to find out by early-to-mid May. “Our commitment is we are going to do everything possible to make fair payments to brokers,” says DeWitt M. Smith, Senior Vice President and Chief Sales & Marketing Officer for ShelterPoint Life, a top-rated insurance carrier poised to offer Paid Family Leve coverage through brokers across New York State.
Because of the additional premiums that will be deducted from employee wages and paid by employers, there could be a “nice increase in potential commission revenue,” continues Smith. “We believe the State appreciates the efforts involved by the brokers, and will make it possible for us to offer incremental increases in broker commissions.”
In short… we’re still waiting to find out how much commission brokers can earn. But The DBL Center and ShelterPoint Life are ready to make it as easy as possible for brokers to streamline PFL sales, enabling brokers to maximize those potential profits. “We’re working to take the worry and stress out of all the transactional and compliance-related issues that go along with PFL,” says Smith.
How Much Work Will It Take?
Writing PFL coverage will represent an added step in a consultative selling approach for DBL brokers in New York. In spite of the news coverage, many employers and HR executives still don’t understand what PFL means or what they need to do to get coverage in place. Employers can begin making payroll deductions for this coverage as early as July 1, so it’s up to you, the trusted broker, to educate your customers on their options.
Fortunately, ShelterPoint Life and The DBL Center are working to make it easy. If you currently write your NYS DBL policies with ShelterPoint Life through The DBL Center, PFL coverage will take the form of a simple rider added to the DBL policy. “For brokers accustomed to working with us in a simple, automated way online, adding PFL coverage to existing policies should be easy,” says Smith.
Brokers who offer PFL should also be ready for an influx of new customers, as only select carriers will write PFL coverage. Brokers who work with The DBL Center have an advantage, because our brokers can continue to write both DBL and PFL coverage policies through us.
My Customers Have Questions. Where Can I Go To Find the Answers?
The PFL education process will take time. Yet, it represents a great opportunity for brokers who work with The DBL Center to employ their consultative selling skills to give customers the answers they can’t find elsewhere. “We’ve had a dedicated task force in place since the day the law was signed,” notes Smith. “We also have a robust external communications strategy, with a dedicated PFL micro-site, blog, and newsletter designed to provide answers to brokers, employers, and employees.”
Browse the ShelterPoint PFL micro-site, formulate a marketing strategy to educate customers, and be certain to turn to The DBL Center should you (or your customers) have additional questions. You might also make plans to attend our informative seminar, sponsored jointly by ShelterPoint Life, The DBL Center, and the New York Business Council, to be held May 10, 2017 from 3 to 5 PM at The Friars Club, 57 E 55th Street, NY, NY. Seating is limited, so RSVP today by emailing firstname.lastname@example.org.