Top Ten Myths

Top Ten Myths about BEN-E-LECT...

1. There are no carriers that work with BEN-E-LECT.
     It is true that not every carrier loves what BEN-E-LECT does; in fact, it is true that not
     every broker loves what BEN-E-LECT does.  But, it is important to remember that
     carriers which seem to dislike the premium reductions BEN-E-LECT provides small
     employers are the same carriers which collect the most premium.

     To be 100% factual, BEN-E-LECT offers plans available from every major insurance
     carrier in the state.  In fact, three carriers are currently marketing plans that          
     BEN-E-LECT helped create.

2. BEN-E-LECT encourages agents to sell "restricted" plans.
     This is always an interesting discussion and we enjoy setting the record straight for
     our business partners.

     BEN-E-LECT's goal is to protect our broker partners, provide them every tool they need
     to compete, and protect them from unsavory competition, so that is why BEN-E-LECT's 
     proposal system includes every carrier plan that we think is worthy.3.

     We want our partners to have the tools they need to discuss all aspects of every plan option.
     In this way, our broker partner can discuss the carrier's products and its attitudes; then steer 
     the employer toward the plan the broker thinks is best or away from the plan that is not. 
     We do not want our partner to leave a meeting only to have another broker show up afterwards
     with plans that our partner did not have available.

 3. BEN-E-LECT's programs increase utilization.
     BEN-E-LECT's programs actually decrease utilization but let's first start with a couple facts.
     1.  Fewer than 4% of the members covered incur enough claims to exceed the carrier's deductible.
     2.  The employees understand that their employer is actually paying the bills, so are we to believe
           that employees will use their plan more when their employer pays the bills than when the insurer
           pays the bills.
     3.   Have you ever met someone who wakes up January 1st and wants to use more than $3,000
           in medical services each year? 

4. BEN-E-LECT does not work for every employer.
     If an employer is currently paying premium for any type of "decent" health plan than the BEN-E-LECT
     plan will work.  Even if an agent has downgraded an employer's plan into the worst of benefits, 
     BEN-E-LECT will work by improving benefits without increasing cost.  Plus, does an agent want to
     risk losing a client by not showing BEN-E-LECT.

5.  The BEN-E-LECT plan is too confusing and has too many steps.
      Members walk into the doctor's office, receive services then pay their copay, members walk into a
      pharmacy, pay their copay, then walk out with their prescription.  What is so difficult about that?
      Through BEN-E-LECT, employers will improve benefits while lowering cost.

6.   Doctors and Pharmacies don't accept BEN-E-LECT.
      BEN-E-LECT has over 75,000 ID cards walking around California.  Occasionally, by mistake,
      a billing clerk will ask the member to pay more than the member should pay.  Members simply
      call BEN-E-LECT and it will not happen again.

      Do doctor's offices make mistakes with traditional plans? Yes.

      Do pharmacy clerks make mistakes with traditional plans? Yes.

7.   Selling BEN-E-LECT cuts my commission/income.
       New business: 3/8, 6/22, 8/26, 1/5
       The fractions above reflect what many brokers are telling us happens when they present BEN-E-LECT and that is:
       a.   an agent in the South Bay sold 3 BEN-E-LECT cases, but took 8 Broker of Records (BOR).
       b.   an agent in the Central Valley sold 6 BEN-E-LECT cases, but took 22 BORs.
       c.   an agent in the North Bay sold 8 BEN-E-LECT cases, but took 26 BORs.
       d.   an agent in Orange County sold 1 BEN-E-LECT case, but took 5 BORs.
       These brokers did not think selling BEN-E-LECT would make them more money.

       What about your current clients?
       Agents can use the savings to sell additional products.  When you save an employer more than $3,000
       per employee annually, you can sell extra commisionable products.

8.    Members may pay first then get reimbursed.
       Absolutely false.  In fact, this is one of the things that sets BEN-E-LECT apart from other TPA's.  BEN-E-LECT
       always pays the providers because that is the method employers prefer.  Reimbursing members is one of the mistakes
       carriers and other TPAs often make.

9.     It is less costly to use a carrier's administration services.
        First of all, carriers who offer "similar" administration services, provide less service and flexibility on their HDHP plans so
        one "should" expect that their service should cost less, but it does not.

         By referring to the "Claims vs. Fees" chart created by BEN-E-LECT, one can see that employers pay out far more in actual
         claims dollars with carrier plan administration than employers pay in fees and claims with BEN-E-LECT.

10.    Other TPAs or carriers do what BEN-E-LECT does.
          It is easy to say, "We can do what BEN-E-LECT does, and we may even charge less".  There have been many TPAs who
          have made that statement and some are even still in business...if you can find them.  The fact is that no other TPA matches
          BEN-E-LECT's service, products or presence in the market.  No TPA has the field sales and service teams to help agents
          and employers.  No TPA has the RX programs, audit programs, renewal and retention tools, vendor relationships or
          customer service team to match BEN-E-LECT.  BEN-E-LECT has more staff in its customer service department than any 
          other TPA has in its entire staff.  No brag...just fact.  Be careful, don't be fooled by imitations and beware, because you get
          what you pay for.