What is a Private Healthcare Exchange…Really?

Here’s the short answer.

It’s simply a place (commonly a website) for people to buy health insurance that is run by a private company (as opposed to a government agency).

That sounds too simple, isn’t it more complicated than that?

There are many factors that need to be addressed for an exchange to be successful, however, setting up an exchange does not need to be difficult.  

The two most important factors to implementing an exchange are:

• Selecting the right software to administer the exchange
• Choosing the right plans to offer

What to look for in an Exchange software solution

• Employee decision support tool
• Does the software provide enough information to help your employees make the best decision for them?  Is there a recommendation engine to provide the best options based on an employees current situation?  
• Simple, well-defined interface
• Can a first time user easily understand what they’re seeing?  Is the information presented in a clear, straightforward manner?
• Interactive shopping experience
• One of the benefits of an exchange is that the employee has greater flexibility to create their own benefits portfolio.  The plan selection should be easy to understand, follow and complete.
• Automation
• Once elections are made, the exchange should simplify the transmission of elections to carriers, deductions to payroll, etc.  Re-typing any information is to be avoided at all costs.

Defined Contribution vs. Defined Benefit?

Defined contribution means the employer offers a fixed dollar amount to the employee for the selection of health coverage at their discretion.  The defined contribution model allows the employee greater freedom to create their own benefit portfolio, selecting benefits based on their individual needs. Quickly gaining prominence in the marketplace, this model gives the employer the ability to more accurately predict their total healthcare expense.

Defined benefit means the employer has a set health coverage plan in which the employee can enroll.  This model has more exposure to cost variations.

How can I set up an exchange at my company?

I strongly recommend that you work with your insurance broker to help you set up the exchange.  Your broker will work with carriers to negotiate the rates and terms so the plans you offer are right for your company.  Once your broker has helped you select appropriate plans, be sure to do your research and choose a software provider who will provide the right solution for your organization.

Give yourself at least 90 days before your open enrollment starts so the software can be configured for your company rules and all required data feeds can be built and tested.

For more information about WORKTERRA’s exchange capabilities, visit our website @ workterra.com or send me an email at dan (@) workterra.com

Sales Call Checklist

"You eat what you kill,"  my first sales manager had told me.  My base salary was so low that if I didn't earn some business, my paycheck was $413.13 a month (yes, I remember that amount almost 20 years later).

I was developing a brand new territory (all cold calls) and knew that if I wanted to make an impact, I needed tools.  The first tool I came up with was a very basic "Pre-Call Checklist."  I keep a replica on my desk, and I still use this philosophy before every call.

• I stopped here because:___________________________
• My main goal for this call is:________________________
• I will be happy if:_________________________________
• Don't get out of the truck until you can answer all 3 of these.

I trained myself to never get out of the truck unless I knew the answer to those 3 questions.  This gave me clarity of purpose and I never felt like I was wasting anyone's time. 

I am a goal setter by nature so this came naturally to me but I am amazed to hear salespeople tell the client, "I was in the neighborhood," or "I just stopped by to say hello."  If that's really the reason for taking up the their time, the client should toss you out.

Setting goals for a sales call gives you clarity of purpose.   Be respectful of other's time and have a clear objective to achieve.  If you do, you will be surprised how often you achieve it.

What 6 Sigma Can Teach You About Selling

Sales is a process, not an event.  
While I learned a lot earning my 6 Sigma Black Belt certificate, most of it does not apply to the subjective and intuitive field of sales.  Those who have never sold for a living may confuse selling with "closing."  While the conclusion of a sale can often be the most dramatic, the selling process most closely resembles old fashioned hard work.

Salespeople who have been at it for a long time make it look easy.  They will tell you that their sales are a result of their relationships.  They may not even realize that they're following a clear process.

There is variability in the process based on industry, product, the nature of the interactions (phone, email, face to face) but for the most part, successful sales follow a process that looks something like this:

1. Prospecting
2. Developing rapport
3. Establishing interest
4. Info/requirement gathering
5. Solution proposal
6. Proposal
7. Negotiation
8. Conclusion 

If you really want to get good at selling, you need to recognize your process and understand that it is your job to move the deal along, always working toward conclusion.  Sometimes that conclusion will be a lost sale but losing and moving on is better than leaving unresolved loose ends.

6 Sigma forces you to break steps down into clear pieces to allow for better analysis.  Once you can clearly see the pieces, you can figure out how they interrelate and what you need to do to move the process along.

My suggestion for you is to make sure you have a good understanding of the process that defines your situation.  Give it some thought and ask around but don't let anyone tell you that there is not a process...I'll bet you my black belt that there is one. 

If you really want to get good at selling, I recommend reading or watching anything by Jeffrey Gitomer.  Even better, if you can see him live, its a full dose of sales training wrapped into a comedy show.  www.gitomer.com 

The Laws of Selling Do NOT Change By Industry

"Are you nuts?"  That was the general consensus of my friends & associates when I told them that I was changing careers after 18 years in the equipment industry.  I had been involved in construction equipment since 1994 and had seen it all.  From rental coordinator to sales to general manager...even 15,000 miles behind the wheel of a tractor trailer.

Making the decision to leave the comfort and familiarity of that industry for the unknown of a software startup seemed like a risky proposition.  Looking back, it was probably the best career decision I ever made but the biggest lesson I have learned is how similar the two industries really are.   

The More Things Change, The More They Stay The Same
I figured the real eye opener would be my first sales call.  Dirt contractors vs. insurance brokers, I thought it would be night and day.  Turns out the questions and concerns were the same:

• Value - Does the benefit of the product outweigh the cost?
• Service - Will you be my partner or is this a one-time transaction?
• Trust - Would you sell this to a family member? 

There are a few more subtleties that come into play regarding tractors (tangible, visible) versus SaaS software (see but can't touch) but these three topics above cover 90% of the sales process.

Sales based on price only makes for a miserable career.  Regardless of what you're selling, Value, Service and Trust are not going out of style anytime soon.

For more info about WORKTERRA and our positions on Value, Service and Trust, visit our website at www.workterra.com