Prepare For The Worst So You Have No Regrets
Wednesday, May 16, 2012 |
posted by Lori Power |
Posted in: life insurance, insurance, insurance coverage, insurance products |
“It’s my first time dying, I’m just trying to get use to it,” she said in a forced, flippant voice as we got to the heart of why she was calling.
This is certainly not the type of call I ever expected to take.
You see, when the call began, she was questioning her coverage as many employees do. The majority of our calls are from employees asking about, and confirming their coverage. They either have or have not read their benefit booklet and have clarification questions; we provide the clarity. But this was different, obviously.
She had been pronounced terminally ill and as she relayed it to me, had anywhere from three weeks to three months - tops. She was doing her best in the time she had left to get her affairs in order. In her words, that’s all she had been doing since receiving the tragic news. Unlike one of my colleague’s clients who, last winter, went to work in the morning fully intending to be home for supper, only to have poor weather conditions cause him to drive off a bridge and never make it home, she had time, however limited, to prepare.
In itself, this ‘time’ she was granted may be good, but it stuck with me and continues to trouble me. You see, the man who went off the bridge because of icy road conditions didn’t need the extra time to prepare for those he left behind. His affairs, as it were, had been settled ever so long ago. It was a tragic loss, but not a prolonged tragedy of financial loss for those left behind who have to contend with the final expenses, the mortgage, the loans, the children and the day-to-day living that costs money, time, energy and effort and the burden is now doubled when the life partner is not there to provide that day-to-day support.
For this woman, her final days were spent planning and preparing, using her limited and waning energy to ensure there was enough for the children and her husband – protection for those left behind. Other than the group life policy, there was no other individual coverage. There was the insurance on the mortgage, which will pay her portion of the mortgage, but what about all of the other expenses? What about the lack of a will? What about probate?
Some will shrug and say, not my issue. I will be gone and I don’t want anyone getting rich from my death. Getting rich off of someone’s death is not even part of the equation. Coverage is meant to ensure those left behind don’t carry a financial loss in addition to the loss of a beloved family member. And this was her train of thought as she talked to me. If it wasn’t important, she wouldn’t have called. If it didn’t mean anything, she would have shrugged and said “well, I’ll leave it for them to deal with.” But she didn’t think that way when she knew the end was near. When the end was upon her, her number one concern was to ensure those left behind would be taken care of the way she would have taken care of them had she been there to do it herself.
The sad part, as I see it, is she used her final days having to worry about these things instead of just being with her family who loved her dearly.
My message: don’t go out with regrets. Take time now, meet with that someone who can put everything in place so when you are not there, everything carries on as you would have wished it to.
Prescription Drug Coverage
Wednesday, April 25, 2012 |
posted by Lori Power |
Posted in: benefit coverage, coverage, drug coverage, drug benefits |
A chronic problem in the group insurance arena is how to combat the increasing cost of prescriptions, while ensuring employees continue to receive the coverage they need. Before a strategy to combat these increasing costs can be implemented, it is imperative to understand the reasons behind the increasing costs.
According to Express Scripts Inc. (ESI) Canada, annual drug spending per employee in the year 2000 was $329 compared to $736 per employee in 2011. But getting to the ‘why’ is more beneficial when building strategy.
Fifty-two per cent of all drug costs are spent on chronic diseases such as high blood pressure, type 2 diabetes and high cholesterol. In fact, 85 per cent of Canadians will have a chronic condition by the time they are 45 years old.
Every year, new drugs and new drug therapies are introduced, and biologic drugs are becoming more main-stream and cost substantially more than traditional drug therapies. As some drugs lose their patent exclusivity, leading to the introduction of low price generic equivalents, these costs are offset, but the fact of the matter is we have an aging demographic and the ‘need’ for these treatments continues to monopolize the funds allocated to benefits, resulting in double digit plan cost increases.
The good news is that 85 per cent of people who use pharmaceuticals claim fewer than $1,000 per year. So the first step is to stop over insuring a product that may or may not be used. Having an ‘unlimited’ drug plan means that, as a company, you are paying for the ‘risk’ that someone may use the plan to unlimited limits.
Implement wellness plans such as employee assistance programs that cost a mere fraction of what a drug benefit plan costs and start getting your workforce healthy. The cost of prevention is a long-term investment strategy that pays dividends by saving you money later on, while your workforce is healthier.
Customer Service
Thursday, February 23, 2012 |
posted by Lori Power |
Posted in: life insurance, customer service, benefits, benefit plan, insurance, insurance products |
I like ice cream. I am a little kid at heart in that respect and there is nothing like a nice evening, out with the family and an ice cream cone to widen the smile.
So, there we are at our favourite ice cream shop, a major chain, no real competition in the marketplace and the people behind the counter (not the teens everyone expects to blame this on, people old enough to know better with teens worked into the mix) are slouching, sloppy, leaning on the counter and generally uninterested in the job at hand. There is no focus, no attention to detail, no thank you for spending the premium prices that they charge for iced milk! The order is placed and we are waiting. The shop is not busy and there is a general feeling of inactivity. We have the singer in the back putting the burgers together with ninja (you think I am putting on and I am not!) chops complete with sound effects. There is the wipper snipper, dish towel flinging cashier and I wonder how any orders are being filled.
Wonder no more, they weren’t. As we headed outside, the cars in the drive through were backed out to the road!
Our order for a family of four, just on ice cream, covered the salary of one of the eight employees I counted inside for at least an hour and a half, so there is no question there is enough money coming in the door, can no one take the time to ensure that these people stand up straight, take pride in their job and get the work done the way it is suppose to get done to the best quality available? Or is it just that they really have no competition for their product and hence no real need to treat the customer better? We are all just so used to buying our ice cream there that we don’t even think about going anywhere else.
This type of attitude transfers, I realize, into a lot of areas where we spend money. As creatures of habit, we are use to buying our groceries at one location and our gas at another and so when the service slides, do we notice? Maybe, but then we just continue on . What if we were to try something different - test the waters and see what a difference service makes to our overall enjoyment of the product.
When looking at your benefit plan and all the benefits provided for the employees, what would it hurt to test the waters, see the difference some innovation, some attention to detail, some grateful recipients of your business, makes to the overall experience?
I have to say, my ice cream would have tasted a whole lot better going down had it been given with a smile!
Overcome the Distraction
Wednesday, December 14, 2011 |
posted by Lori Power |
Posted in: life insurance, insurance, insurance coverage, insurance plan, health spending accounts, benefit coverage |
The discussion around the new Distracted Driving laws in Alberta makes me think about all the things we get ‘distracted’ by.
As I drive down any Metro road, at any given time, there are so many distractions - other drivers, mosquitoes that have snuck in, my kids. But road signs ... they have reached a whole new level of distraction. Never mind the old fashioned wooden advertising, we’re now in the electronic age and these new signs – jumbo billboard types that use to be a rarity to see at a concert in a stadium – are now the norm on the side of the road, not just to advertise, but entertain as you drive by or sit in traffic. Never mind trying to figure out your next turn or even what street you’re on, these new signs deliver what to eat, what to wear and where to go to do these things and how long it will take to get there. Who needs GPS?
Of course the idea of the new law is to have your eyes on the road ... but the message ... so glittery and available, taking us off course, encouraging us to stray from the intended purpose - getting where we are going safely.
Isn’t this a metaphor for most things in life and business?
With the intention of getting things done, we are often put off course by the distractions, the glitter, the want. It is the want that often makes us forego the need even with our health coverage. So, instead of having the right benefit plan, which covers the needs and takes care of the things we want, we get distracted by the glitz, the show, the sale.
In our business of employee benefits, we are jaded. We KNOW people need coverage for life and disability insurance, health and dental coverage, but people get distracted (scared away) by the cost of implementation and swayed by glittery mix messaging. In the end, often people forego what they and their employees “need” and they wind up with substandard coverage that creates havoc and frustration when the time comes for them to make a claim.
The point, stay focused. Keep your eyes on the road and the job at hand of providing benefits to cover the necessities. Engage qualified, competent consultants who will ensure you understand exactly what you are buying and why you are buying it. If you don’t have a need for it, don’t buy it ... it really is that simple. Then when the time comes, you have the benefit of necessary coverage, at an acceptable price without any barriers to successful outcomes.
Celebration
Wednesday, November 16, 2011 |
posted by Lori Power |
Posted in: quikcard, quickcard, insurance, group insurance, group benefits, benefits, benefit coverage, benefit products, insurance coverage, life insurance |
Anniversaries, birthdays, family events and other special occasions are wonderful time markers. They symbolize growth and maturity, both personally and professionally.
It is truly unfortunate that sometimes the only professional time markers you hear of are the BIG ones: 10-25-50-100 years. What about all the hard work that goes into a business all those other years? As we start to poke our heads out of the current recession and reflect on all those businesses that didn’t make it through, join us in giving thanks that we’re still here, striving each day to do what we do best.
As with many companies, we too have passed some mile stones, although none of the BIG markers, but worth celebrating in any event.
- It has been 47 years since the ADSC (Alberta Dental Service Corporation) founded the original company. Dentists working for Dentist providing innovative dental benefit plans for companies in Alberta.
- It has been 22-years since the birth of Quikcard Solutions Inc. providing self-directed, self-funded health and dental plans with more flexibility, and certainly more cost effectiveness than traditional benefit plans.
- 12-years is the marker since Quikcard moved from being an Alberta based company, to a national company, offering their unique suite of services to all business in Canada (except Quebec) by opening a second office in Nova Scotia.
- The last three years marked another evolution in our growth, moving us to provide both insured and self-insured benefit plans through Quikcard Benefits Consulting Inc.
Many of our clients have grown and continued with us through every stage of progress and development since the very beginning and for that we thank them for their continued support.
For all of our clients that have joined with us, or are considering joining us now, many thanks for your business and trust in our services.
As we grow, age (don’t tell anyone) and mature (hopefully) both personally and professionally, we promise to continue to strive to offer the very best solutions in employee group benefits.
And for all of you celebrating a birthday, anniversary or a special milestone, take stock and enjoy your day. You have earned it!
What to Know When Looking for Group Insurance Quotes
Thursday, September 8, 2011 |
posted by Lori Power |
Posted in: insurance, group benefits, group insurance, group coverage, insurance plan, insurance coverage, insurance products, broker, insurance company |
“Insurance is so complicated, there are so many rules.”This is one of the first things potential clients say to me when working together on their group benefit plan. However, this doesn't need to be the case.
This perception typically comes on the heels of that client choosing one broker to work with to receive various insurance quotes from different insurance companies. They have usually, inadvertently, called at least two separate insurance brokers figuring the brokers are an insurance company. In the group benefit world, an insurance carrier (Manulife, Sun Life, Great-West Life, Standard Life, RBC Insurance, etc.) will release only one quote to one broker. In order for another broker to receive a quote on the same client, the original broker must, in essence, be fired from the case.
You see, an insurance broker is not bound by any one insurance company … they are their own company and they work for the client – always. An insurance agent, on the other hand, is bound to one insurance company and works for that company only. A client may deal with an agent of that company, but that agent will always be biased towards the insurance company that pays them. An example of this is Blue Cross. Brokers can place business with Blue Cross for their clients, but Blue Cross is one of the only remaining insurance companies in Canada who still have their own in-house agents and, when a client calls into Blue Cross for a quotation, they are assigned an agent. Once that agent is assigned, all brokers for that business are blocked.
As a benefit broker, when a client comes through our door, going to the marketplace to gather quotations is not the first item on the list, especially if that client already has a benefit plan in place. Instead we:
1. listen to the wants and needs of that group.
2. complete an analysis of the existing benefit plan to learn what is going with the plan that has caused the client to come our way.
3. develop and build a plan design that is going to work and be able to be modified for that client as they grow and change as a business.
4. Then and only then, will we canvas the marketplace for pricing on benefits. By that point, everyone is clear about the objectives they want to achieve with the benefit plan as an overall business solution.
Insurance CAN be complicated but it doesn’t have to be. At Quikcard, we like simple, straight forward solutions that work for our clients in helping them attain their benefit goals.
Stop the Insanity
Wednesday, August 10, 2011 |
posted by Lori Power |
Posted in: employee benefits, life insurance, group benefits, benefit coverage, insurance, insurance coverage, group coverage, benefits, benefit products, insurance products, quickcard insurance, benefit plan, coverage, health spending accounts, health spending account, group insurance, employee coverage, employee group benefits |
Everyone in business knows the old adage of insanity … continually doing the same thing and expecting different results. The same applies to Employee Group Benefits.
Time after time, employers get fed up with their current benefit plan- the benefits being provided and, especially, the pricing. However, instead of looking for something different, something to stop the cycle, they typically just change the carrier and/or broker.
So, what has been accomplished in this scenario? Either the existing broker or a new broker suggestspricing can be established with a new insurance carrier where the company can get better pricing with no loss of coverage. It’s a good deal and typically employers go for it, saving around 10-12% over the existing rates. Inevitability, time marches on, once again the pricing has gone up and the cycle repeats because there has been no real change to the benefit plan.
In essence nothing changes as the business owner has enacted the same old strategy, but expected different results.
It can be different with the introduction of Strategy, Analysis, and Planning.
A good plan analysis will review the existing plan design and measure it against the overall business objectives of the company. This means reviewing the history of the benefit costs and claims, measuring results, accounting for the money being spent on coverage and comparing it the money being spent to provide the coverage. A benefit plan should mirror the business plan, being just as fluid and changeable as the business over time. And, just like a good business plan, the owner should know all the ins and outs of how everything should be working compared to how it is actually working.
To stop the insanity, look at what is important to the plan members, understand the pricing, and ensure catastrophic events are covered. Then plan and implement strategic solutions which ensure superior coverage and price stability over time so the cycle of insanity is stopped.
We Mean What We Say
Tuesday, July 12, 2011 |
posted by Lori Power |
Posted in: life insurance, hsa, health spending accounts, group benefits, group coverage, group insurance, benefits, insurance coverage, insurance plan, insurance |
I was listening to the radio and an advertisement came on for Lube-X narrated by a fellow with an excellent, what I would refer to as a ‘western’ voice: “We say it. We mean it. And more importantly, we do it,” he intoned at the end of the spiel.
How important is that in a world full of commercials and mass media? A lot of companies ‘say it’ and obviously they ‘mean it’ but it wasn’t the ‘we do it’ that grabbed me … it was the ‘more importantly’ part of his slogan, because he is right. It is one thing to say it, but it is much more important to do it. Said another way, you can put the worm on the hook to bait the fish and you can catch the fish, but can you prepare the fish in a meal that is both edible and likable? That truly is the challenge.
We can … we are right there with Lube-X … we say we create “easy, affordable, flexible benefit plans” and, you know what? We do!
Our plans follow the KIS (keep it simple) approach and many initially accuse us of being too easy because they have been conditioned to complication in the benefits world … but when broken down, benefits are not complicated.
Our plans are affordable. We consistently (yet another great word that has meaning) provide savings for our clients. These are not just words that sound good, these are words with meaning that we put into action.
Flexible. There are not many brokerage companies that can claim they offer benefit plans to single, incorporated professional corporations as well as large multi-nationals. We do. And we do this while always keeping our services consistent. We build to suit. We listen to our clients and provide benefits that suit their needs because each company’s benefit plan is as unique as a finger print and should be treated as such.
Are you unique?
Of course you are!
Don’t you deserve a benefit package that is as unique as your business approach?
Of course you, and your employees, do!
Give us a call to learn we really do mean what we say!
Stop-Loss Prescription Coverage
Wednesday, June 8, 2011 |
posted by Lori Power |
Posted in: Stop-loss, stop loss, coverage, insurance, hsa, health spending account |
Stop-Loss Prescription Coverage
Earlier this year we were pleased to release a stand-alone, stop-loss insurance specifically designed to cover catastrophic prescription needs up to $25,000 per person in the household.
Prescription stop-loss is intended for the high cost, unplanned catastrophic eventualities, not the everyday antibiotic pharmaceuticals or annual dental cleanings.
Unlike other aspects of the health care system, there is no universal coverage in place for prescription drugs. Nevertheless, they are a common household expense, with over 300 million prescriptions filled each year—about 10 for each man, woman and child. Although some employers may consider purchasing stop-loss coverage an unnecessary expense compared to more traditional style benefit plans, there are significant savings to be had by strategically building a benefit plan on sound principals of coverage and cost containment, including stop-loss coverage.
Results vary from one province to another but in a recent analysis, we compared a fully insured benefit plan with that which utilized the best providers for each category of coverage. This plan looked at Life Insurance, AD&D, Dependent Life Insurance, Long-Term Disability (LTD), Prescription Drug (Rx) coverage, Extended Health Care (EHC), Emergency Travel and Dental Care. No Short-Term Disability, no Critical Illness, and no Vision Care service.
Apples to apples on the plan design, we looked at the same insurance carrier for the Life, AD&D, Dependent Life and LTD. We utilized at a self-insured, administrative services only plan (ASO) for EHC and Dental; used the RBC Group Travel for the Emergency Travel Assistance and our new Stop Loss coverage for the pharmaceutical coverage.
The Emergency Medical Assistance our plan offered, through RBC as a stand-alone product, is $2.89 for a single employee and $6.59 for family. Due to volume pricing we are able to offer this at a significant discount to anyone else in the marketplace.
Using an ASO product for health and dental means the costs are based on claims plus administration. If there are no claims, there are no costs to the company. There are no sign-up fees, no transactional fees and no monthly costs. Simply administration on claims. An insured plan for these benefits charges on the premium regardless of usage and the typical savings for a company using an ASO product, depending on circumstances, is roughly 15-20%.
Factoring in the Prescription Stop-loss, non-medically underwritten at $26 per single and $61 per family per month, we were able to save this company 22% over the fully insured plan, with no loss of coverage.
One may think using so many carriers/providers would complicate the benefit plan but that is not so. These are our provider partners behind the scene and to the end user, our client, it is one plan, working to ensure the best coverage is available from the very best providers of that coverage. Segmenting a plan like this ensures accuracy in pricing for each component of the benefit plan and allows our clients to see and budget their costs from one year to the next with little to no surprises, while at the same time, ensuring the best coverage is available for their employees.
ROI of Benefits
Wednesday, May 11, 2011 |
posted by Lori Power |
Posted in: benefits, benefit plans, dental, hsa, health spending accounts |
ROI of Benefits
Life is all about choices and to have choices, you need to have options. Often we don't consider having options when it comes to paying for dental or health care services. However, not knowing those options can mean we are paying far more out of pocket for those services then we need to.
For example, a client owns a business and requires dental work in the amount of $3,588. The client has several options for coverage, but the primary focus from the client’s point-of-view is not paying out of pocket for the service so they are referred to Medicard, a patient finance company. Essentially, a credit card specifically for health care services.
The dental services are performed and Medicard takes care of the bill, treating it as a loan in the client’s personal name, not their corporate name. It is repayable over 60-months with the client paying $105.17 per month and being charged:
• 21.95% annual interest, which amounts to $2,719.48 over the life of the loan (at this point many will point out that this client does not have to continue the loan for 60-months, they can repay it at any time. True, but anyone following the financial skills of the average Canadian, know without my saying, that MOST will not repay early, they simply cannot afford to.)
• As well as the one time grantor’s loan finance charge of $215.28
By the time this $3,588 dental bill is repaid, five years AFTER the service, the client would be out-of-pocket $6,522.76! Almost double the original bill. It’s like continuing to pay for a sofa that has long since gone out of style and been sold it in a garage sale.
There is, of course another way, better way, the Quikcard way.
The same dental bill of $3,588 can be funded through their company Quikcard account with corporate money and NO sign-up fees. Health and dental services provided in Canada (outside the province of Quebec) are considered non-taxable, so the company does not have tax consequences of paying for this on behalf of the owner (also considered an employee).
The claim is issued and there is:
• A 12% administration fee charged on the dental bill, amounting to $430.56.
• GST charged on the administration fee, $21.53.
The grand total of the claim treated in this fashion is $4,040.09 creating a savings of $2,473.67 over the Medicard!
Savings are savings, no matter how you slice it … but let’s take it just one step further. The $2,473 is not only personal savings for this client, but because the Quikcard account is in the company name, the full amount of the dental bill becomes a 100% corporate tax deduction instead of the client having to repay the Medicard loan personally with after tax dollars, where in order to pay the $105 each month, the client had to earn $143!
Do you know about the choices you have in covering these services?
