Qualifying ProspectsWEBINARS

for the Premium Reimbursement

Qualifying Prospectsfor Premium Reimbursement

J.D. Cleary, Sales Manager

@jdzanebenefits

Webinar

Presenter

Zane Benefits

#qualifyingprospects

DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state. www.ZaneBenefits.com

Group health insurance is broken. We have the solution.

Zane Benefits offers simple, affordable, and compliant health benefit solutions to small and medium-sized businesses.

The ZaneHealth software helps businesses save 20% to 60% on healthcare costs by reimbursing employees for individual health insurance.

Our online solutions allow businesses to create compliant healthcare reimbursement plans that create happier employees, reduce costs, and save time.

Zane Benefits' Partner Program is an opportunity for insurance professionals to provide clients with custom Zane Benefits solutions. Request a Partner Evaluation.

Additional FREE Resources: Small Business Health Insurance & Premium Reimbursement

View all of our free eBooks, Whitepapers and On-Demand Webinars at: ZaneBenefits.com/Resources

Subscribe to our Blog at:ZaneBenefits.com/Blog

Agenda

1. Premium Reimbursement Plan - What is it?

2. What problems does Premium Reimbursement solve?

3. Ideal Customer Profiles for Premium Reimbursement Plans

4. How to find and qualify prospects

5. How insurance and accounting professionals benefit

#qualifyingprospects

Premium Reimbursement Plan - What is it?

#qualifyingprospects

Premium Reimbursement

Two primary options:

● Taxable Healthcare Allowance, or

● Tax-free Healthcare Reimbursement Plan (HRP)*

* Must be designed to comply with Market Reforms

1. Businesses offer employees a monthly healthcare allowance to use on individual health insurance.

2. Employees purchase their own health plan and are reimbursed up to the amount available in their balance.

ZaneHealth (Overview)

#qualifyingprospects

ZaneHealth is a simple, online solution that allows companies to reimburse employees tax-free for individual health insurance premiums.

How ZaneHealth works:

● The business sets monthly healthcare allowances

● Employees purchase their own health plan and submit a reimbursement

request through ZaneHealth

● ZaneHealth processes the request and the company reimburses

employees for the approved expense

What Problems Does Premium Reimbursement Solve?

#qualifyingprospects

The Three “R’s”

#qualifyingprospects

Health benefits are the #1 fringe benefit offered by employers for:

● Recruiting - remain competitive in their respective market

● Retention - improve or maintain existing employee morale

● ROI - keep employees healthy, productive, and happy

Recruiting, Retention, and Return On Investment (ROI)

Return On Investment - ROI

#qualifyingprospects

Businesses view employee health benefits as an investment - and rightfully so.

Businesses should seek a better return on that investment (ROI).

The rising cost of group health insurance puts the business at a disadvantage from the start.

ROI = [(Payback - Investment)/Investment)]*100

Cost Savings with ZaneHealth

Single Family

Cost of Individual Plan $2,424 / year $7,248 / year

Cost of Employer Plan $6,492 / year $18,312 / year

Savings Per Employee $4,068 / year $11,064 / year

Percentage Savings 63% 60%

Based off 2014 health insurance costs for the state of Illinois.

Source: U.S. Health and Human Services, QHP Landscape Market Medical 2014 (See data.healthcare.gov).

#qualifyingprospects

Cost Savings with ZaneHealth

Per Employee Total Per Employee Total

15 Single Employees

$6,492 $97,380 $2,424 $36,360

30 Families (incl. Employee)

$18,312 $549,360 $7,248 $217,440

Total Costs $646,740 $253,800

Total Employer Plan Cost (Employer Pays 70%)

$452,718 $177,660

Employer - Provided Plan Premium Reimbursement Plan

Annual Savings with Premium Reimbursement Plan: $275,058

#qualifyingprospects

Ideal Customer Profiles for Premium Reimbursement

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Ideal Customer Profile (ICP) - The Concept

#qualifyingprospects

ICP is a defined, written description of the best clients - ones that value your product or services

The goal is to connect and spend time with the BEST prospects. Consider:

● Number of employees● Industry verticals● Common business challenges● Decision-making● Financials (budget)

ICP for Premium Reimbursement

#qualifyingprospects

Businesses NOT Offering Employee Health Benefits

● Ideal Business Size: 1 - 50 W-2 Employees

● Common Business Challenges:○ No recruiting / retention tool○ Seeking tax savings○ Compliance

● Typical Decision-Makers:○ Gatekeeper to Owner○ Business Owner

● Industry Verticals:○ Professional practices○ Nonprofits○ Tech startups

Over 2.3 million small businesses did not offer health insurance in 2012.

ICP for Premium Reimbursement (Continued)

#qualifyingprospects

Source: Kaiser Family Foundation

ICP for Premium Reimbursement (Continued)

#qualifyingprospects

● Ideal Business Size: 2 - 500 W-2 Employees

● Common Business Challenges:○ Current group plan too expensive○ Seeking recruiting / retention tool○ Admin hassle / time

● Typical Decision-Makers:○ Management Teams○ HR

● Industry Verticals:○ Manufacturing○ Professional services (i.e. consulting,

accounting, etc.)○ Healthcare (urgent care, assisted living, etc.)

Businesses Currently Offering Employee Health Benefits

How to Find and Qualify Prospects

#qualifyingprospects

Finding Premium Reimbursement Prospects

#qualifyingprospects

Today’s Buyer

“Buyers are often between 70 and 90 percent of the way through the

sales process before they ever engage a vendor”

#qualifyingprospects

1. Identify a problem - NEED2. Research solution(s) - LEARN3. Engage vendor(s) - BUY

Remember - there are two distinct sales processes:

● Premium reimbursement vehicle● Health insurance to employees

- Forrester Research

Qualifying Premium Reimbursement Prospects

#qualifyingprospects

● Cost○ Annual Increases○ Existing cost○ Desired cost

● Recruiting and Retention○ Employees unhappy with coverage○ Employees asking about coverage

● Ongoing management○ Administration○ Compliance awareness

Ask the right questions.

Qualify your prospects by asking the right questions to assess their health benefits needs and goals:

The “qualifier’s” best tool is the calculation of

savings or ROI.

Getting to “Yes”

Businesses Not Offering

Employee Benefits:

The self-administrator - Objection: “Why can’t we manage this on

our own?”

Response: “You can, with a software to

minimize time spent and to ensure

compliance.”

The penny-pincher - Objection: “Fees don’t justify the benefit.”

Response: “Tax savings outweigh fees

by year two at the latest.”

#qualifyingprospects

Businesses Offering Employee

Benefits:

The traditionalist - Objection: “Group health insurance is

better.” Response:”Health reform has put

individual and group insurance on the

same playing field.”

The over-complicator - Objection: “My employees will struggle

with the transition to individual health

insurance.”

Response: “Individual health insurance is

like a tax application.”

How Insurance and Accounting Professionals Benefit

#qualifyingprospects

ROI for Insurance and Accounting Professionals

● Expand your product line○ Comprehensive consultant, opportunity to cross-sell

○ Integrate Premium Reimbursement to compliment your existing offerings

● Generate new prospects and partnerships○ Lifetime value of an employer client

○ Create evangelists that spread the good word

● Generate opportunities for more revenue○ More sales (insurance and ancillary) = more commission

○ Premium Reimbursement commission

#qualifyingprospects

Summary and Q&A

#qualifyingprospects

Summary and Q&A

1. Premium Reimbursement (ZaneHealth) allows businesses to reimburse employees for individual health insurance costs.

2. Businesses offer employee health benefits for recruiting and retention goals - ROI needs to be positive.

3. Identifying Ideal Customer Profiles (ICPs) helps with prospecting.

4. Today’s buyers are educated - use this to your advantage.

5. Choosing the correct Premium Reimbursement vendor will increase the ROI for insurance and accounting professionals.

#qualifyingprospects

Additional FREE Resources: Small Business Health Insurance & Defined Contribution

View all of our free eBooks, Whitepapers and On-Demand Webinars at: ZaneBenefits.com/Resources

Subscribe to our Blog at:ZaneBenefits.com/Blog

DISCLAIMERThe information provided herein by Zane Benefits is general in nature and should not be relied on for commercial decisions without conducting independent review and analysis and discussing alternatives with legal, accounting, and insurance advisors. Furthermore, health insurance regulations differ in each state; information provided does not apply to any specific U.S. state except where noted. See a licensed agent for detailed information on your state. www.ZaneBenefits.com

Group health insurance is broken. We have the solution.

Zane Benefits offers simple, affordable, and compliant health benefit solutions to small businesses.

The ZaneHealth software helps businesses save 20% to 60% on healthcare costs by reimbursing employees for individual health insurance.

Our online solutions allow businesses to create compliant healthcare reimbursement plans that create happier employees, reduce costs, and save time.

Zane Benefits' Partner Program is an opportunity for insurance professionals to provide clients with custom Zane Benefits solutions. Request a Partner Evaluation.