Question

Topic: Customer Behavior

Marketing A "charity" Program In A Non-charity Way

Posted by ccrosser on 2/11/2010 at 12:32 PM ET 500 Points
A health care agency receives government funds to subsidize care and determines fees using a sliding scale based on family income. They want to market this program as an "insurance plan". Not sure if this is ethical because it is really not an insurance program. If it is okay, how they would do this.
The reason: they claim that their community will not accept "charity" or a government handout.
How else could this agency address this challenge in their community? Thank you.
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by thecynicalmarketer on 2/11/2010 at 1:01 PM Accepted
    Cool idea, but it is definitely not OK without a lot more work.

    To sell or market any program or service as insurance, you must comply with various state's rules and regulations for insurance providers (one rule is that you must used licensed sales agents).

    LifeLock is being sued for fraud and other causes of action in a class action case on behalf of hundreds of thousand of customers for their various claimed acts including improperly selling insurance.

    I suggest you consult appropriate legal counsel before you go forward with this one.

    Best of Luck, JohnnyB.
    The TCM Blog, https://bit.ly/75KkSG
    https://twitter.com/tcmblog


  • Posted by michael on 2/11/2010 at 1:40 PM Accepted
    State regs determine what you can and cannot say.

    Walgreens has a discount program. It states clearly that it is not an insurance policy.

    AAA offers prescription savings; again states NOT Insurance.

    Definitely don't want the regulators breathing down your neck.

    Take it from an old (not THAT old) insurance guy.

    Michael
  • Posted by CarolBlaha on 2/11/2010 at 1:46 PM Accepted
    Think of all the other discount health programs out there-- they clearly state they are not insurance. You need a license to sell insurance.

    Call is Community Assurance.
  • Posted by ccrosser on 2/11/2010 at 2:01 PM Author
    Thank you very much for these responses. I thought as much but appreciate this confirmation. Please note that this agency has not changed their program - they have only asked about this and I will certainly give them feedback. Excellent information all of you have presented and I am grateful.
  • Posted by Gary Bloomer on 2/11/2010 at 2:10 PM Accepted
    Dear ccrosser,

    Why not just call it a gift?

    All this talk about insurance? Nix it. It's NOT insurance, it's a safety net; it's a service; it's a gift from one friend to another. Friends helping friends might be a useful approach so consider that as a possibility.

    I hope this helps.

    Gary Bloomer
    Wilmington, DE, USA
  • Posted on 2/11/2010 at 3:07 PM Accepted
    Randall is (as usual) right on. As are all the others emphatically noting that your client can not use the term insurance or imply it is an insurance. If care-ity doesn't work - how about "The Helping Hand Program" or something along those lines?

    Good Luck!

    CVN
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Customer Behavior)