SHOP WebinarFebruary 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 plans3

How to differentiate SHOP?

• Reducing administrivia:– Employee choice is more complex than sole-

sourcing– 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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