June 23rd 2020
I hope all of you are finding some semblance of your pre Covid Life. We have been very fortunate here at Producers XL as none of our staff have been sick and we have been able to maintain our commitment level to all our valued partners. Thanks for sticking with us through this unique time.
Who wants to join my Zoom Meeting???
Ok, so I have been pushing hard to get information out to you about the new Lasso Group MSA product for age 65+ employees inside an employer group plan. The response has been fair to this point, a lot of agents are seeing the value proposition for their employer clients. If you haven’t taken the time to understand what and how this product can do to save business owners a substantial amount of money of their group healthcare premiums, give me a call and let me introduce it to you.
As good as the product is there is some push back from the field. The first obstacle is the fact we cannot pair up an MSA with a traditional group healthcare plan when the group size is 20+ active employees. Many of our group writer friends out in the field work in this space and unfortunately this product is not viable for them. The product fits perfectly for small employer groups (19 active employees and under) and retiree groups regardless of their size.
The other push back I have received is many small employers in their own way have moved their age 65+ employees to an individual Medicare product and off the group. Ok, I know some of you reading this are saying “Hey, they cannot do that!”, you cannot remove someone from a group just because they are an age-related risk to the group. Given this fact, it has happened and will continue to happen with the high cost of group health care.
For those employers who have put their age 65+ employees on an individual product, I have a different perspective and way to help them. Consider the LASSO MSA group product and the advantages of putting their age-related risk with it.
Let's look at how employers can benefit from using LASSO MSA.
- Group fee paid by the employer is eligible for a tax deduction
- The MSA group fee can cost the employer as little as $50 per member, per month
- Enhancing the MSA with an HRA, the HRA contributions are eligible for a tax deduction
- Peace of mind knowing they are providing a comprehensive health plan
- Lasso will take their Medicare-eligible employees today; they do not have to wait for the Annual Election Period to enroll them
Benefits to the employee using the MSA
You do not need to be AHIP certified to market this product. Yes, it is a Medicare product, but because it is on a group chassis it does not require the AHIP certification. The company, Lasso Healthcare, requires a much-simplified certification that takes very little time and effort to complete.
- As long as an employee is on any group healthcare plan, they are extending their insurability. When an employee leaves group coverage whether it is at age 65 or older, they get a guaranteed issue into a Medicare product and do not have to prove insurability. That is an excellent reason to take the employees who have been moved to an individual Medicare product and bring them back to the group via the Lasso MSA. Regardless of any prior coverage, if an employee’s last coverage was on a group chassis, they get a guaranteed issue into Medicare.
- The employee by law can never have a premium for their Lasso MSA
- The employee will never have a network of doctors to see, they can see any Medicare-participating provider in the US.
- The employee gets to purchase their own drug plan based on their prescription drug needs and not the rest of the group’s needs.
- The employee can use the MSA funds for how they want to, they can save them, invest them, or use them to help meet their deductible.
- The MSA funds are the employees to keep when they leave the group coverage.
I always talk about what a great deal the LASSO MSA is for the business owner and the employee but do not forget the unique opportunity it provides for you the agent. Today, you are on the ground floor of a tremendous product, and believe me when I tell you people are taking notice of this product. We are starting to see some very large retiree organizations across the United States adopting this product for their beneficiaries. You do not need special training to market this product, anyone can sell it with a health license. For more information please contact me anytime. As always, your friendly staff at Producers XL appreciate your business and look forward to our continued partnership with you. Be kind and make a difference.