Navigating the complex medical schemes environment

FA NEWS: Technology is one area where brokers get an edge over the competition. Using today’s computer applications they can quote and administer Medical Schemes business quickly and efficiently. How has BrokerTools been received since its October 2011 launch?

BT: The BrokerTools application has been adopted by most of the country’s large healthcare brokers for its ability to generate effortless, accurate, and FAIS-compliant advice and quotations.

FA NEWS: How many schemes and benefits does the application "cover”?

BT: The product incorporates 198 options across 23 Open and seven Closed Schemes. The Open Schemes represent 96% of the membership across that category.

FA NEWS: How do you ensure that the system is 100% up to date with Schemes’ offerings?

BT: Scheme benefits "go live” on the system within 48 hours of a schemes’ annual launch. The information provided by each scheme is verified against its rules and interim changes are uploaded as they become effective.

FA NEWS: Can anybody use the quotation system?

BT: The application is aimed at FSB-registered and CMS-accredited healthcare intermediaries ONLY. Since 2004 the number of accredited brokers has declined by almost half – and it is hoped BrokerTools will make it possible for deregistered brokers to venture back into the field.

FA NEWS: Can you explain the features of the BrokerTools system?

BT: The system comprises five different tools, as follows:

1. Individual Quotation Tool: Produces quick and FAIS-compliant quotations on any scheme option within two minutes. Quotations are printed on FSP stationary and include the required FSP, FAIS and Scheme documentation.

2. Group Quotation Tool: Easily upload client data and do up to four comparative quotations or billings on any combination of schemes and options.

3. Document Sender Tool: The system carries more than 600 scheme documents (brochures and forms) that can be sent to clients as required.

4. Benefit Comparison Tool: A quick reference to all 198 options’ benefit information to enable staff to deal with member enquiries and provide comparative advice.

5. Year-end Revision Tool: Generate and send comparisons on consecutive years’ benefit options to clients.

FA NEWS: What capabilities distinguish your system from the competition?

BT: There is no system in commercial use that offers similar capabilities to those of BrokerTools. Our system addresses the most pressing problems experienced by healthcare brokers, including to:

•Comply with the FAIS Act,

•Generate quotations independently and in less time,

•Provide access to comprehensive and accurate information on Medical Schemes,

•Communicate complex information to clients effectively,

•Reduce cost and effort in procuring new business,

•Provide objective and impartial advice,

•Assist staff to communicate in a uniform manner,

•Reduce the effort required during year-end revisions, and

•Increase new business growth.

FA NEWS: The system can quote for individuals or groups? Is there a limit to the size of a group?

BT: Group quotations have always been difficult and time consuming. BrokerTools produces group quotes without fuss and in record time. We stress tested the system on a group of 10, 000 members and completed the required 150 calculations per member AND four comprehensive quotations on different schemes and options, with the required FAIS and other documentation, within six minutes!

FA NEWS: Is the system 100% compliant in terms of the FAIS guidelines?

BT: Both the CMS and FSB provided valuable input during the development of the system. An analysis of the General Code of Conduct for Authorised Financial Service Providers and Representatives reveals 42 distinct criteria that must be complied with. BrokerTools complies with the seven moral and ethical conduct criteria as well as the rest of the FAIS requirements.

FA NEWS: It is extremely difficult to compare one medical scheme to the next. How does the system make sense from the myriad schemes and benefit options on offer?

BT: We focus on a set of criteria that generate 92% of all scheme-incurred healthcare expenses. This information is tabulated for ease of use and interpretation. The system includes a broker rating feature that allows brokers to rate Schemes and Options using a five star rating scale. This provides an excellent indication of client satisfaction when comparing products in terms of servicing and administration. We also include important criteria such as member demographics and premium increases over the past five years.

FA NEWS: What costs will brokers incur to use the system?

BT: Each broker will incur an initial set-up and installation fee and a fee to train each user. In addition to this we charge a monthly fee per licensee. These fees vary between R300 and R565 per month depending on the number of users at the FSP.

FA NEWS: Why should healthcare brokers "splurge” on the BrokerTools application?

 

BT: The speed, accuracy and simplicity of the BrokerTools quotation will impress current and potential clients. Brokers use the application to become true specialists on a number of schemes. This assists them in providing comprehensive and FAIS-compliant advice.

FA NEWS: How does your system assist brokers in growing their businesses?

BT: The system allows brokers to focus on individual business, an area neglected due to FAIS risk and the time and effort required to "do it right”.

FA NEWS: What are the major challenges today’s healthcare brokers face?

BT: The biggest problem is to grow and service your clients cost-effectively within the constraints created by limited commission income and the rising demand from clients for affordable solutions.

FA NEWS: National Health Insurance (NHI) is the hot topic in the healthcare environment at present. Does the NHI impact your product?

BT: NHI will result in many exciting changes in the Medical Schemes industry. Public healthcare insurance will increase the demand for expert advice and result in a proliferation of private sector products that are more complex and varied than what we have today.

FA NEWS: Where can brokers find out more about the system?

To find out more about how BrokerTools can transform your business simply visit www.brokertools.co.za