To MWG Marketings

1
Welcome
To MWG Marketings
Presentation of
For Agent Use Only
2
Agenda

• Who is MorganWhite?

• Who are the Insurers?

• Approved States

• Who Does the Administration for the Premium
  Saver Plan?

• What is the Premium Saver designed to do?

• Who had the original idea for the product?

• Why was MorganWhite interested in investing
  in the idea?

• How have employers reacted to this concept?

• How have agents reacted to this product?

• Power Point Presentation
• Commission example

• Saving Illustration

• Premium Saver Rates
• Fast Team
• Questions and Answers

3
Who is MorganWhite?
John J. Morgan and David R. White founded
MorganWhite in 1987.
The business started out primarily focusing on
payroll deduction supplemental insurance
products.
Today MorganWhite designs and markets Value Added
Products throughout the U.S. and Latin America
4
MorganWhite Administrators

• Third Party Administrator for the group
• Licensed in 48 states
• Represents 50 different U.S. insurers
• Billing and collection specialists.

5
Who are the Insurers for the Premium Saver?

• Standard Life and Accident Insurance Company
• Galveston, Texas
• American National Group
• Rated A Excellent by A.M.Best

• AmFirst Insurance Company
• Domiciled in Oklahoma
• Licensed in Oklahoma, Mississippi, Texas, and
  Tennessee 9
• Owned by the same owners as MorganWhiteGroup

6
Approved States
Standard Life and Accident Insurance Company
Premium Saver Approved in 24 states
Arizona, Arkansas, California, Colorado,
Georgia, Illinois, Iowa, Kentucky, Louisiana,
Michigan, Mississippi, Missouri, Montana,
Nebraska, New Mexico, Ohio, Oklahoma, Oregon,
Pennsylvania, South Carolina, Tennessee,
Texas, Virginia, West Virginia
AmFirst Insurance Company
Premium Saver Approved in Oklahoma and Mississippi
7
Who Does the Administration?
Morgan White Administrators

• Billing
• Policy Issue
• Claims

8
What is the Premium Saver designed to do?
Designed to help reduce the overall cost of group
medical coverage
 Insurers AmFirst Insurance Company Standard Life
and Accident Insurance Company
9
Why did MorganWhite decide to invest in this idea?
 A. The market demanded a solution to 1.
Rising cost of major medical 2. Cost
reaching crisis levels  B. Employers want
better alternatives C. Timing perfect
 Insurers AmFirst Insurance Company Standard Life
and Accident Insurance Company
10
How have employers reacted to this concept?
During the first few years of our marketing the
Premium Saver in Mississippi over 120 groups have
implemented the program with premium in excess of
8,000,000.
 Insurers AmFirst Insurance Company Standard Life
and Accident Insurance Company
11
How have agents reacted to this product?
Agent Comments

• The Premium Saver allows me to hold on to my
  groups because it is a tool I can use to control
  cost.

• This product gives my groups a cost reducing
  alternative.

• I use the Premium Saver to open new groups. I can
  offer the lowest price by using the Premium Saver.

• The Premium Saver commission level makes major
  medical insurance worth selling again.

 Insurers AmFirst Insurance Company Standard Life
and Accident Insurance Company
12
Welcome

• from

13
underwritten by

• Designed to help reduce the overall cost of group
  medical coverage.

14
Guarantee Issue

• No Waiting Period for Pre-Existing Conditions
• Flexible
• Allows the employer to select the benefit amount
  and the deductible amount to maximize premium
  savings for group medical coverage
• All persons covered by the groups major medical
  plan must be covered by the Premium Saver plan.

15
How does it work?

• The employer raises the deductible and/or
  coinsurance on their group major medical plan.
  This should result in a significant reduction in
  premium.
• Combining the two plans should reduce the overall
  premium cost for group medical coverage and limit
  the employees exposure to risk.

16
Premium Saver Plan Example Before
17
Premium Saver Plan Example After

• New Major Premium Saver
  Rates Total New Rates
• Medical Rate with with 4,500
  benefit (Major Medical and
• 5000 deductible and
  500 deductible Premium Saver)
•   20 to 1500 20 to 1500
• coinsurance coinsurance
• Employee 225.07
  72.81 297.88
• Employee 491.40
  160.05 651.45
• and Spouse
• Employee 378.67
  140.79 519.46
• and Child(ren)
• Employee 629.22
  228.02 857.24
• and Family

18
Premium Saver Plan Example Savings

• Number Savings/ Monthly
  Yearly
• of Apps Employee
  Savings Savings
•  
• Employee 120 x 38
  4,560 54,720
• Employee and Spouse 25 x
  81 2,025 24,300
• Employee and Child(ren) 30 x 45
  1,350 16,200
• Employee and Family 35 x 81
  2,835 34,020
•  
• Total Savings 10,770
  129,240
•  Rates and savings will vary by group. This is
• only an example.

19
What coverage is provided with the Premium Saver
Plan?

• Group Supplemental Coverage
• Health insurance designed exclusively for those
  covered under a group major medical plan or
  comprehensive health plan that has annual
  deductible provision.

• Supplemental Deductible Coverage
• This supplemental plan has an annual deductible
  per insured person that must be paid by the
  insured before any benefits are payable.

20
Inpatient Hospital and Outpatient Benefits

• A. Supplemental Benefits for Covered Hospital
  ConfinementFor medically necessary expenses
  incurred while you are confined in the hospital
  for a period of at least 24 hours this plan pays
• - Pays the amount applied to your deductible
  or deductible and coinsurance by your major
  medical or comprehensive health plan.
• Supplemental Benefits for Covered Outpatient
  Expenses
• For medically necessary expenses incurred in the
  outpatient department of a hospital, an
  ambulatory surgical center, day surgery facility
  or emergency room this plan pays
• - Pays the amount applied to your deductible or
  deductible and coinsurance by your major medical
  or comprehensive health plan.
• Allied Service Rider
• Expands Outpatient coverage

21
Premium Saver Plan Design

• Each group can choose the Premium Saver benefit
  amount Premium Saver deductible and coinsurance
  to achieve the maximum overall premium savings
  for their group medical plan
• Maximum Total Benefit Amount options 1,000 to
  9,500
• Deductible options 250 500 1,000 1500
  2000 2500 3000
• Co-Insurance options 80/20 70/30 60/40 50/50

22
Flexibility of Plan Design

• Various combinations of deductible and
  co-insurance benefits can be used to achieve
  maximum premium savings.

23
How to File a Claim

• Many hospitals will file your claim for you if
  you present them with your
• Premium Saver
• insurance card along with your major medical
  insurance card.

24
Steps to follow if you file your Premium Saver
claim

• Your claim is filed against your major medical
  carrier.
• Your major medical provider will provide you with
  an EOB (explanation of benefits), which will
  explain the amount applied to your deductible.
• Ask your doctor and/or hospital to provide you
  with an itemized bill (UB92 or HICFA1500), which
  will explain the medical providers charges.
• Send the completed claim form, the EOB, and
  itemized bill from the medical provider to
  MorganWhite Administrators.

25
Commission Example

•  
• What did the agent mean when he said The Premium
  Saver commission level makes major medical worth
  selling again?
• While the cost of major medical is rising, the
  commissions on major medical have been
  deteriorating.
• Here is the commission you would earn for selling
  the Premium Saver if you wrote a group like the
  one in the example and you selected 12
  commission.
•  

Employee   Employee and spouse   Employee and
children   Employee and family Monthly
Premium   Monthly Commission   Annual Commission
120 x 72 8,640  25 x 160 4,000 30
x 140 4,200 35 x 228
7,980 24,820 24,820 x 12 2,978 297,840
x 12 35,740
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XYZ Company Savings Illustration
Premium Saver Plan

27
XYZ Company Savings Illustration
Premium Saver Plan

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XYZ Company Savings Illustration

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Plan Quote Sheet
Required for Groups Over 100 GROUP NAME
_______________________________

MAJOR MEDICAL CARRIER_____________________________
______
CURRENT DEDUCTIBLE ______________ NEW
DEDUCTIBLE ______________
NEW DEDUCTIBLE RENEWAL PREMIUMS ____________ ___
_________ ____________ ____________
CURRENT PREMIUMS ____________ ____________ ____
________ ____________
RENEWAL PREMIUMS ____________ ____________ ____
________ ____________
Premium Savings ____________ ____________ ____
________ ____________
- - - - -

EMPLOYEE EMPLOYEE/SPOUSEE EMPLOYEE/CHILD(REN) FAMI
LY
  PREMIUM SAVER PLAN DESIGN The Premium Saver
Benefit Amount and the Premium Saver Deductible
should the Major Medical Deductible  
_______________ PREMIUM SAVER BENEFIT
AMOUNT  SELECT ONE PREMIUM SAVER BENEFIT AMOUNT
1,000 1,500 2000 2500 3000
________________PREMIUM SAVER DEDUCTIBLE PER
PERSON PER CALENDER YEAR  SELECT ONE PREMIUM
SAVER DEDUCTIBLE AMOUNT 250 500 1000  
NEW MAJOR MEDICAL DEDUCTIBLE

• REQUIREMENTS FOR QUOTE
• ATTACH RENEWAL OR PROPOSAL FROM HEALTH CARRIER
  FOR MAJOR MEDICAL
• EMPLOYER GENERATED CENSUS REQUIRED FOR ALL
  QUOTES. MUST INCLUDE NAMES AND AGES OF ALL
  OVERED UNDER THE GROUP MAJOR MEDICAL PLAN
• THIS WORKSHEET MUST BE COMPLETE
•  Agent Name ____________________________ Phone
  __________________________________
• Fax____________________________________ e-mail
  _________________________________

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MorganWhite Brokerage DivisionFast Team
1-800-800-1397

• Ashley Haines
• Rhonda Short
• Rebecca Cooper

ashley_at_morganwhite.com rhonda_at_morganwhite.com rebe
cca_at_morganwhite.com
Ext 147 Ext 120 Ext 156