One of the biggest challenges in increasing the number of individuals covered by health insurance and keeping premiums affordable for chronically and seriously ill people is encouraging the young and healthy to invest in health insurance. Despite the Affordable Care Act (ACA) requiring individuals to avail health insurance or risk paying a tax penalty, the number of people who invested is far lower than what was expected after the mandate.
As insurance agents, this challenge can be motivating and discouraging at the same time. We can always tell potential clients the risks of not being insured, but when we come down to the part of paying premiums, we receive hesitation more often than not. Prospect clients would claim that they’re in good shape, anyway, so they don’t see themselves catching a serious illness anywhere in the near future.
Thankfully, insurance agents can obtain support from excellent insurance marketing companies. This would ensure their success, helping them stay driven to convince more people to invest in any type of insurance.
But of course, even with adequate support, an agent’s success still ultimately depends on their dedication. So, how will you persuade the young and healthy to get health insurance?
The Importance of Health Insurance
When one is insured, they can go to the doctor and receive preventive services anytime. Contrary to what most uninsured people may believe, health providers aren’t actually required by law to give medical services to uninsured individuals. Only emergency departments are strictly required to provide care, whether the patient is insured or not.
Insured individuals can also receive treatment sooner, and so do their beneficiaries, who are usually their immediate family members. In an employer-sponsored plan, for example,the company may cover their employee’s costs of insuring their family members. Moreover, almost every health insurance plan has a co-pay responsibility wherein the employee pays a small fee (typically $10 – $40) to cover a portion of the healthcare services they receive.
Health insurance prevents medical debts as well, especially in emergency situations that may result in costly treatments. Considering that medical debt is the number one cause of personal bankruptcy, every individual indeed should invest in health insurance rather than bear the risk of losing money. And even if their medical debt doesn’t result in bankruptcy, it can surely make a dent on their savings, and they’d be more susceptible to financial problems that may force them to sell their properties and borrow money.
Lastly, being insured gives individuals tax deductions. They would no longer be subject to ACA’s tax penalty, which is $695 for adults and $347.50 for children, or 2% of one’s yearly income, whichever is higher.
Affordable Health Insurance Option
Good coverage for young and healthy individuals is a modified form of a high-deductible health plan (HDHP). In this plan, the annual deductibles are usually over $2,000 per family, that is if they’re paying for high-value medical services and evidence-based medications without being subject to deductibles.
The Access to Better Care Act of 2016 would provide flexible health savings account-qualified HDHPs that can cover for treatments of chronic conditions on a pre-deductible basis.
The premium of HDHP is typically 10% less than that of traditional health insurances as well. Coupled with tax deductions for the insured, it truly allows for more savings, so it’s definitely ideal for young and healthy individuals.
As a competent insurance agent, emphasize these amazing benefits rather than the disadvantages of not being insured. Focus on the best options you can offer, and listen attentively to their needs and concerns because you might also find a plan that can be tailored for them. Use your voice and knowledge as well to spread awareness about the importance of being insured.