SHOP Webinar
February 22, 2012
Jon Kingsdale, Ph.D.
Managing Director
Wakely Consulting Group
How to differentiate SHOP?
• Employee-choice is a 2-step sale,
positioning the subscriber as the “retail”
customer
• Good evidence that employees like choice
• However, the first sale—getting “on the
shelf”—is to the employer
• How to make the SHOP exchange
attractive to small employers?
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How to differentiate SHOP?
• Small employers’ buying preferences:
– Near-term premium savings
– Reducing “administrivia”
• Premium savings:
– Small biz tax credit
– Employee affordability screening
– Eliminate employer assn surcharges &
membership fees on mini-groups
– Offer a choice of plans, including market-powerful
and low-premium, select-network plans
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How to differentiate SHOP?
• Reducing administrivia:
– Employee choice is more complex than solesourcing
– Just explaining contribution policy is complicated
– Match/exceed the outside market for
• Customer service (claims resolution issues?)
• Ancillary benefits and support
– Consider use of existing commercial resources
• General agents & chambers of commerce
• Small business associations
• Private exchanges
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