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Alain ParentDirector of Sales, Group Insurance
Assumption Life
Agenda
• Who is responsible for our health?
• Why are the cost of Health Care increasing?
• How to control cost?
Questions
Personal evaluation of your group insurance plan provided by your employer…
A – Very generous
B – Generous
C – We would like to increase the coverages
D – Decrease coverages or increase co-payment
E – Status-quo
The additional amounts required will be provided from ?
There is only one budget…
Questions
Who is responsible for your health?
A – Medicare?
B – Your physician?
C – Your pharmacist?
D – Your employer?
E – You?
Questions
Who pays for your health care?
A – The governement, with your taxes?
B – Your employer, group insurance?
C – The insurer?
D – You?
E – A combination of A, B, C & D
Rate Calculation
Risk: Life, AD&D, Dependent Life• Rates are calculated based on the demographic factors of
the group (salary, age, insurance amounts, sex)
Experience: Health, Dental• Rates are calculated based on the group’s overall
utilisation experience and the projected inflation rates.• With ASO plans: the claims plus the ASO fees.
LTD:• Combination of risk and experience
Claims Experience
July 2009 – May 2010 Loss Ratio
HealthPremiumsClaims
$74,166$61,688 83.18%
DentalPremiumsClaims
$22,395$18,448 82.38%
• Health premiums will be adjusted to remove all pooling and travel charges.
• Health claims will be adjusted to remove all large amount drug pooled and travel claims.
• The incurred but not reported claims are not included in this loss-ratio, but they will be added.
Claims Experience - Health
July 2009 – May 2010
Hospitalization $130 0.21%
Drugs $45,192 73.26%
Vision Care $5,370 8.71%
Extended Health $10,994 17.82%
Travel Insurance $0 0%
Total $61,688 100%
Claims Experience - Dental
July 2009 – May 2010
Basic Care $18,448 100%
Major Restorations $0 0%
Prosthetics $0 0%
Orthodontics $0 0%
Total $18,448 100%
Why is the cost of health care increasing?
Possible causes of increasing healthcare cost
• Age of workforce
• Lifestyle
• Increasing rates of utilization
• Increasing rates of chronic disease
• Expensive new drugs
• Cost-shifting by government
Increasing Healthcare Cost
Statistics Canada reports in 2004
• ADULTS– 23.1% were obese– 36.1% were overweight
• CHILDREN ages 2 to 17 (National average)– 8% were obese– 18% were overweight
Conditions resulting from being overweight and obese
• Diabetes
• High cholesterol
• Ulcer
• Depression
• High Blood Pressure
• …
How to control cost?
Health and Dental
Cost Control
Who contributes to the choice or dispensing of drugs?
• Patient (Television, magazines, peers, beliefs, internet, etc.)
• Doctor (Pharmaceutical rep., conferences)
• Pharmacist (Cost, mark-up, dispensing fee)
Dispensing Fees
8.67 8.38 8.68
6.99 6.97 6.72
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When the number of prescriptions paid for in a year for a group reaches the thousands, the difference in a dispensing fee can have a significant impact on the insurance cost.
Cost Control (Health Care)
How can you make a difference when choosing DRUGS?
• Dispensing fees differences
• Generics available
• Drug supply to reduce number of dispensing fees
• Quantity dispensed versus requirement
• Exclude over-the-counter drugs
• Alternatives to drugs
Cost Control (Dental Care)
Options are available
• Is recall exam every 6 months necessary?
• Do I really need another X-ray?
• Ask the dentist what your options are.
• Dentists cost differ.
• Current fee guide
What Can You Do?
Education
• Learn as much as you can about your condition through other sources (request resource information from your doctor, internet, news, work place resources).
• Look for opportunities to improve your own personal wellness.
• Joining a gym is not the only path to better wellness. Wellness consists of making smart choices every day because you and your family’s health are worth it.
• Choices, not chance, determines the improvement of your own health.
Ideas for Healthy Living
EAT LESSEAT LESS
TRIM FAT FROM MEATTRIM FAT FROM MEAT
LIMIT ALCOHOLLIMIT ALCOHOL
QUIT SMOKINGQUIT SMOKING
TAKE A WALKTAKE A WALK
LEARN TO SINGLEARN TO SING
JOIN A GYMJOIN A GYM
TAKE A YOGA CLASSTAKE A YOGA CLASS
PLAY WITH YOUR KIDSPLAY WITH YOUR KIDS
WALK THE DOGWALK THE DOG
GO FOR A RUNGO FOR A RUN
CLIMB A TREECLIMB A TREE
LEARN TO DANCELEARN TO DANCE
PLAY IN THE SNOWPLAY IN THE SNOW
RIDE YOUR BIKERIDE YOUR BIKE
TAKE COOKING CLASSTAKE COOKING CLASS
SWIMSWIM
DRINK MORE WATERDRINK MORE WATER
GET PLENTY OF RESTGET PLENTY OF REST
GO CAMPINGGO CAMPING
JOIN A PADDLE CLUBJOIN A PADDLE CLUB
BUILD A SANDCASTLEBUILD A SANDCASTLE
EAT MORE FRUITEAT MORE FRUIT
GO SNOWSHOEINGGO SNOWSHOEING
PRACTISE BEING GRATEFULPRACTISE BEING GRATEFUL
MEET NEW PEOPLEMEET NEW PEOPLE
TRY ROCKCLIMBINGTRY ROCKCLIMBING
LISTEN TO THE OCEANLISTEN TO THE OCEAN
LEARN TO PLAY AN LEARN TO PLAY AN
INSTRUMENTINSTRUMENT
TAKE AN ART CLASSTAKE AN ART CLASS
GO SKATING ON THE PONDGO SKATING ON THE POND
WATCH THE BIRDSWATCH THE BIRDS
GO CROSS COUNTRY SKIINGGO CROSS COUNTRY SKIING
LEAVE YOUR CAR AT HOMELEAVE YOUR CAR AT HOME
RAKE SOME LEAVESRAKE SOME LEAVES
PLANT A GRADENPLANT A GRADEN
VISIT YOUR FRIENDSVISIT YOUR FRIENDS
ENJOY THE BEAUTY OF ENJOY THE BEAUTY OF
NATURENATURE
SMILE SMILE
LISTEN TO YOUR FAVORITE LISTEN TO YOUR FAVORITE
MUSICMUSIC
GAZE THE STARSGAZE THE STARS
ATTEND A PLAYATTEND A PLAY
LEARN A SECOND LANGUAGELEARN A SECOND LANGUAGE
EAT MORE VEGETABLESEAT MORE VEGETABLES
CUT DOWN ON SALTCUT DOWN ON SALT
READ A GOOD BOOKREAD A GOOD BOOK
VOLUNTEER YOUR TIMEVOLUNTEER YOUR TIME
MEDITATEMEDITATE
RIDE A HORSERIDE A HORSE
LEARN ABOUT ANOTHER LEARN ABOUT ANOTHER
CULTURECULTURE
Full range of benefits or Health and Dental only *
Evidence of insurability for 3-4-5 lives (EHC only) *
Grandfathering clause (Copy of last billing statement)
Less than 41% family content – OK for LTD (2 out of 5)
Less than 50% government funding – OK for LTD
•One year in business
•Extended Healthcare renewal rates below $120 Single / $300 Family
•No active employee on disability *
•Not a home-based business
•One year in business
•Extended Healthcare renewal rates below $120 Single / $300 Family
•Claims experience: 9 months
•Claims experience must be within the last 6 months
Standard Commission Structures
* As much as flat 15% commission on small group!
Bonus:On First-Year Commissions
CreditedThe group insurance bonus is credited to the agent’s account at the beginning of each year , on the preceding year’s group insurance commissions.
Bonus:Total Net Commissions
CreditedThe group insurance bonus is credited to the agent’s account at the beginning of each year , on the preceding year’s group insurance commissions.
Contest Period:
January 3rd – October 30th, 2011
Two Spots are reserved for Group Insurance producers…
1 - Top Spot
2 – Wild Card
(Minimum $250,000 of annualized premiums)
Contest Period
Janurary 1st, 2010 – December 31st, 2011
Qualification Requirements
$1,2M of annualized premiums (net of terminations)