Selling value-based insurance design (V-BID) can prove lucrative. Launched in 2017, the estimated number of Medicare enrollees covered by participating Value-Based Insurance Design Model MA plans will increase by more than 24% in 2023 compared to 2022. Getting acquainted with the ins and outs of V-BID right now, however, could provide you with exciting new career opportunities in the future. As an insurance agent, you might need to sell this type of insurance to a wide range of customers in order to meet internal targets.
But where do you start? Here are three tips for selling value-based insurance design to healthcare customers.
1. Break It Down
Most of your customers know all about home insurance and car insurance, but V-BID is a completely different beast. You’ll want to break down this complicated concept and explain it in a way that your audience will understand. This will increase interest in this product.
Don’t forget to be confident! As an insurance agent, it’s your job to answer any questions that prospects might have and convince them to take out a policy that will suit their healthcare needs. Customers can be wary about healthcare insurance — it has such a massive impact on their family’s lives — but you can alleviate their concerns.
“Educate each prospect on what you offer, what insurance can do for them, and why going beyond the premium is critical in their buying decision,” says Nectar Marketplace. “When you can help a customer understand there is more to insurance than premium, you can help sell them a better product that will provide the coverage necessary.”
2. Highlight the Benefits
Value-based insurance has multiple benefits to policyholders, but you need to convey these to potential new customers. Remember, value-based insurance is all about value, rather than price. So, focus on the advantages this type of insurance provides — how it increases healthcare quality and offers more choice, for example.
Think of all the ways V-BID can solve a customer’s healthcare problems. Remember: There’s no one-size-fits-all approach to selling this type of insurance. Different customers will have different pain points and require unique solutions.
You might also want to use real-world examples of value-based insurance design in order to showcase all of its healthcare benefits. Here’s one example:
Smoking-Cessation Programs: To help employees quit smoking, an employer might utilize cessation programs as a means to incentivize employees to participate. Here, employers might reimburse employees for the cost of nicotine patches, nicotine gum, nicotine lozenges, nicotine nasal spray, nicotine inhalers, Bupropion, Varenicline, and individual, group or phone counseling.
3. Choose the Right Customer Base
Not everyone will benefit from value-based insurance, so you should focus your efforts on the right customer segments. Target prospects who require fewer healthcare services and want to reduce their premiums, for example.
Tailor your sales pitches to each customer’s needs. If a prospect wants to reduce healthcare costs, for example, focus on the value of a particular policy.
Value-based insurance design doesn’t have to be a tough sell. Follow the three tips above and become a more confident, informed insurance agent. As a result, you can convince prospects to take out the perfect insurance policy based on their healthcare needs.
