3 tips for helping clients with short-term plans
Even if you don’t plan to make short-term plans a core component of your strategy, you can prepare now to give good advice to key clients with whom you have an important relationship.
The new regulations would allow these plans to provide coverage for up to 364 days, as opposed to three months. If these new regulations are approved, many expect more consumers will consider short-term plans as an alternative to comprehensive coverage.
Some brokers may prefer not to weigh in on short-term plans, but it’s possible that you will have some important clients who will want your experienced opinion. If a decision-maker, or a decision-maker’s family member, is asking for assistance, it may benefit your agency to have some steps in place to help.
Slideshow: 10 situations where short-term health insurance might be a good idea
Even if you don’t plan to make short-term plans a core component of your strategy, you can prepare now to give good advice to key clients with whom you have an important relationship.
Here are three tips for advising clients on short-term plans.
1. Pick one carrier to represent
Many brokers already use this strategy when it comes to individual health plans and choose just one carrier to represent to clients looking for individual coverage. Determine which carriers are available in your market and choose one that you believe is the best option for consumers.
When working with clients, you can explain that you can help them enroll in the option you have selected, or that they can use an online quoting engine if they are interested in additional carriers. Many consumers will prefer to get personalized assistance in enrolling rather than having a lot of options.
2. Be prepared for a DOI complaint
A key concern with offering short-term plans is that an unhappy client may allege the plan was misrepresented. Develop documented training materials for anyone in your firm who may help consumers with short-term plans, which you can use to demonstrate that you conducted due diligence in regards to accurately communicating the structure of these plans.
These training materials could include slides from carriers, and you may also consider obtaining input from your state’s Department of Insurance.
3. Create a one-pager for clients
Design a one-page explainer that makes explicitly clear that short-term plans are not comprehensive coverage. Make it easy to understand, and require clients to sign it before enrolling them in a short-term plan.
This is one way to ensure your clients fully understand what kind of plan they are signing up for. It is also something that could prove helpful if someone does make a complaint to the Department of Insurance.
This may seem like a lot of steps, especially as most brokers aren’t going to go out of their way to get involved in short-term plans. That said, important clients and their families may want your input, and it will be helpful to have a procedure in place.
Alex Tolbert is the author of “Online Benefits Technology: The Strategic Broker’s Guide” and leads BerniePortal, an all-in-one HR platform built for brokers by brokers. Before he started the BerniePortal, he worked primarily as a group health insurance broker.