How To Sell HSAs And Why Are They Are The Most Important Weapon In Your Arsenal
By Rick Liuag
The best advice I got early on was, “learn how to sell HSAs”. I would recommend that everyone read The New Health Insurance Solution by the best selling author Paul Pilzer. This book will educate you on the ins and outs of HSAs better than any other printed material you will find. I guarantee it will help you sell more health insurance.
First, you need to introduce HSAs to your prospects by calling them “modified PPOs”. This is critical. A modified PPO means that there is no set co-pays for routine office visits or RX drugs. Do not get into the savings component of the HSA in the beginning because you will confuse the heck out of them. Sell the premium savings FIRST! Here’s an example: “Look here Mary, if you choose the PPO plan with the $25 co-pay, the premium for you and Jethro is about $75 dollars per month more than the modified PPO right?
OK with this modified PPO HSA plan I am recommending instead of the $25 co-pay, you will pay the negotiated insurance rate for yours and your husband’s routine office visits, which on average is $50-$60 dollars instead of $25. But let’s work this out financially. $75 more per month is $900 more per year in premium right? To be able to save $25 to $35 dollars each time to go to the Doctor correct? Let’s say you save the maximum of $35 each time you visit the doctor. You and your husband would have to go to the doctor $900 divided by $35 or 25 times to make up that $900 difference in premium.
Do you think you and Jethro will need to go to the Doctor 25 times this coming year? Now both the insurance company and I would make more money if you choose the other plan, but I wouldn’t be taking care of your money which is part of my job as your agent. However, it’s completely up to you, which plan looks better to you NOW”? This next step is vital. If you get a sense that your prospect understands money then and only then do you explain the savings and tax deductible component of the HSA.
Here’s an example: “Mary, here’s another advantage of this plan. You can have Uncle Sam help pay for as much as 30%- 45% of your medical expenses each year and even better get up to a $6000 tax deduction each year. How? Well Mary this is plan qualifies you to have what’s called a Health Savings Account. Do you have an IRA or 401K? Well this is like one of those, but much better. You can contribute from $1 up to $6000 each year (as a family) into a separate account and then deduct that contribution from your tax return just like you do your IRA.
However, unlike your IRA you can take that money out at ANYTIME, without a penalty or tax, to use for medical expenses! Yes that means the next day! If you need to use it for co-pays, or deductibles, the kid’s orthodontics, ANYTHING that is a medically related expense. And your accountant stills gets to deduct the full contribution. If you don’t need the money it accumulates tax free until you need it. Now Mary contributing to this HSA is NOT compulsory, you don’t have to set it up nor do you have to contribute to it each year. However if you and your husband need more tax deductions this is the ONLY financial tool that enables you to take the full tax deduction AND take the money back out immediately without a tax or penalty.
This feature is NOT the main reason you would choose this plan but it makes it so much more attractive financially than any other plan you might choose. But we’ll let your tax professional help you decide if this makes financial sense for you. If you need me to get information to him AT TAX TIME that’s no problem we have a lot of time to work that out”. If you get the sense that would confuse them make it a point after the application is approved to send them the best explanation of an HSA I can find and it is from the U.S. Department of the Treasury. They have created a terrific power point you can email to your client to explain HSAs in depth. To download a copy of that power point presentation click here.
Rick Liuag spent over 20 years as an executive for several telecommunications and technology companies before starting his own online insurance agency in 2004. He has been a top individual producer for multiple companies each year since 2005. In 2008 Mr. Liuag founded Integrated Resources Inc. A company designed to train and mentor insurance agents on how to market and sell more health and life insurance online. In 2009 he authored the eBook “How to Build Your Own Online Insurance Agency”, an interactive training manual on what web based tools and strategies work best for insurance agents to prosper in the new internet economy. Learn more about the eBook at http://www.Theautomaticagency.biz or visit his blog at http://www.theautomaticagency.biz/blog
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