Matt Helt | SecretPenguin Blog

For those of you who may not have been following along, I sent an open letter to Steven S. Martin, CEO of Blue Cross Blue Shield of Nebraska (BCBS). In my letter, I described the outrage I felt when I found out my health insurance premium will increase by 46% for 2010. In writing the letter, my goal was to get through to BCBS that I was angry. Sometimes you have to publicly announce your concerns in order to get a response.

Well, I certainly succeeded in getting a response. Mr. Martin himself sent me an email expressing his desire to address my concerns. So today at 2 pm we spent a total of 45 minutes discussing my situation and what caused the increase. To be absolutely fair to BCBS and Mr. Martin, I was mistaken in thinking they did this to increase their profits. I admit that I was wrong. BCBS, as Mr. Martin explained, is a non-profit health insurance provider. They reinvest their profits back into a reserve fund. But I will also say that because BCBS did not explain the reason for the increase to me initially, I was pretty much left to make up my reason. My fault for assuming something, but it’s also their fault for not clearly communicating.

So on to the explanation. Mr. Martin said the increase is due to the fact that many healthy people who were in my insurance pool have left. Those of us that remain have to pick up the slack. Unfortunately, there’s a lot of slack to pick up. 10% of the people in our pool account for 50% of the premiums being paid out. The next 10% account for an additional 20% of the premiums being paid out. So essentially 20% of the people take 70% of the money. Pretty close to the old 80/20 rule. So as a healthy person, I’m financing the health care of the sick people in my pool.

We discussed all the issues surrounding the health care debate. In most cases I agree with Mr. Martin. Health care costs are completely out of whack. Politicians are coming up with solutions that really won’t benefit us. This issue is so complex, so unbelievably intricate, that I can honestly say that I believe the entire thing is going to collapse. Unless we wipe the slate clean and start from scratch we will continue to be weighed down by this issue.

Which brings me to my last item. I told Mr. Martin that my goal wasn’t to complain and solve my own problem. Many of you expressed to me that you’re in the same boat, so I asked that BCBS be a leader in this effort and help us all solve the problem of health insurance costs. I told him that small business owners don’t feel like they have a voice. No one is lobbying for us. In response, he suggested we put together a group of small business owners that will meet with BCBS to discuss our issues. This is a very encouraging step forward. If insurers and the people they serve can begin to talk through these issues, understanding where each other is coming from, then perhaps we can develop solutions together and keep the lawmakers from doing something drastic and unnecessary.

If you are interested in being a part of this group please send me an email. We’ll be a setting up a meeting in the next couple of weeks to discuss these issues. This is our chance to have a voice. I hope you decide to be a part of it.

Mr. Martin,

I’m writing to you today to express the shock and disappointment I received when I read the notice you sent me about the premium increase you will be imposing on my family starting Jan. 1, 2010. The notice states that my premium will jump from $400 a month to $585 a month. This represents a 46% increase over my 2009 premium. My question is: How can you possibly justify this? If any other business tried to do this they would immediately get dropped. Customers would mobilize and boycott your company. But since you are an insurance company, and people’s lives are at stake, you act with impunity because no one will call you out. Well, I’m calling you out. This is the very reason people are calling for health care reform. Insurance companies like Blue Cross Blue Shield of Nebraska are looking to boost their bottom line, regardless of how it affects your customers. Your motive is profit. The health of my family is the least of your concerns.

My current policy covers very little in terms of health care expenses. We mainly keep this policy to cover any catastrophic illnesses that might put my family in financial risk. Yet even though this policy covers very little, we are spending close to 15% of our annual income on it. Now you’re asking us to increase our spend an additional 46%? For what? We hardly ever visit the doctor. When my wife or I get sick, we tough it out and try desperately to avoid an office visit. Why? Because when we visit the doctor it costs us 100% out of pocket. This is absurd. And if I do have to visit the doctor for something as mundane as strep throat, I’m left paying $120 for a visit that takes less than 5 minutes. Now, I know what the doctor charges is not your fault, but I hope it illustrates the position I’m in.

Which brings me to the reason why I have to pay you directly for my insurance. I am self-employed. I don’t have the benefit of an employer paying for my health insurance. My wife is self-employed as well. We work very hard to earn a living. Yet it seems the harder we work, the more we have to pay each year for insurance. And this year we hit our breaking point. There’s no way we can afford the increase you are imposing on us. We are forced to put our kids on state aid. Unfortunately, that’s the only option we have left. We will try to keep insurance for my wife and I, but the kids are our biggest concern and unfortunately we’re going to have to rely on the government for assistance. It’s the last thing we want to do, but you left us no choice. And maybe that’s what you had in mind. Perhaps my healthy family is too much of a liability for your profit machine and you want to force us out. Maybe you decided to raise your rates before Congress passes legislation preventing you from doing so. Whatever the case is, we are making drastic changes simply to survive financially.

You may not care what I think. But please pay a little bit of attention. Health care is ruining America. You’re part of the problem. Most of us are out here scrambling to figure out what to do. Perhaps if you hear from those of us who are struggling you might do something proactive to help this situation. My guess is that you’ll continue to figure out ways to increase your bottom line at the expense of people’s health. We want to pay our fair share, and as a business you need to make money. As a business owner I understand this, but what your company is doing is simply a travesty. I guarantee that my family is not the only one affected. I’m sure there are thousands of your customers facing the same predicament right this very minute.

So do something to fix this. Don’t sit back and say “It’s a cost of living issue and out of our hands.” That’s what you say every year. It’s funny though, the only thing that increased 46% over the last year is my health insurance premium. And in my family’s case, since all our doctor visits are paid for straight out or our pocket, you earned almost pure profit from us. We were good to your bottom line. Why don’t you return the favor and be good to my family’s bottom line?

I would love to discuss this in person if you would like. Feel free to send me an email and we’ll set up a time: matt@secretpenguin.com.

Sincerely,

Matt Helt

3:05 pm  October 7, 2009
UPDATE: I received an email from Mr. Martin this afternoon that expresses his desire to speak with me about my concerns. I appreciate the effort and look forward to discussing my letter with him. After we talk, I’ll post an update and let you know what was said.

With the current media saturation of all things health care, I wanted to weigh in on something that’s been troubling me for for awhile now. Our country has been radicalized. Both the right and left-wing pundits are the only ones who have a voice anymore, and they seem to be driving most of the debate. Unfortunately, for the vast majority of us who occupy the middle, we’re left out of the debate simply because we keep our mouths shut. There is no radical middle.

And what would the radical middle say? My hope is that they’d be screaming for a rational approach to our problems. Everyone knows health care is screwed up. Insurance premiums are too high, the costs for doctor visits and medical procedures are insane, and prescription drugs prices in the United States are bankrupting our citizens who are on a fixed income. Each year the problem gets worse. Insurance and pharmaceutical companies make huge profits. We get higher premiums with less benefits. What good is having the best health care in the world if we can’t afford it? In my instance, I pay for my family’s health insurance out of my own pocket. Each year the insurance company comes back to me and tells me my rate will be going up 25%. If any other industry has those kinds of price increases we’d revolt. We’d boycott their services. But since health insurance is supposed to protect us from financial disaster in the event of a medical emergency, we put up with it. No one wants to drop their insurance in protest.

So what do our leaders do? They bicker over solutions, but in the end they do nothing. The right accuses the left of being socialist, while the left accuses the right of being puppets of those industries. This isn’t working. In the end, those of us in the middle, the vast majority of Americans, will continue to suffer.

There is an answer. I agree with the right that it will be too costly to insure everyone. I agree with the left that people deserve the right to health care. The compromise is the that we need to stop the increase of costs. I want to pay for my own health insurance, but I shouldn’t spend a large amount of my yearly income on it. We’re moving towards a society where only the wealthy will be able to afford insurance or treatment. The rest of us are stuck. The medical and insurance companies have to answer to their shareholders, and shareholders have only one thing on their mind - profits. They want the companies they invest in to make lots and lots of money. So as Big Pharma and insurance companies make larger and larger profits, stock prices go up. They stay happy. The executives of these companies make more money due to their shareholders driving up the share prices. The only motivation is profit. People’s lives are on the line, but that doesn’t matter.

I understand this. Human beings are inherently selfish. For the most part, we could care less about other people. It’s our nature to look out for ourselves. If you can’t support yourself, then why should I have to support you? But that’s one of our major flaws. We’re driven by what’s good for the individual, not the group. We pursue options that will make individuals wealthy beyond belief, but never look for solutions that will grow the middle class. The wealthy have the power and influence, so they pressure legislators to create laws that benefit them. The middle class continues to lose its power. The majority of those who champion the rights of the poor are wealthy. Wealth is power, plain and simple. If anyone has uttered the phrase “I write the checks” to you, then they are very aware of the power they have.

The middle needs to radicalize itself. We need people to come forward who will champion the cause of the middle. In a world dictated by money, we need to vote with our checkbooks. If the insurance companies suddenly had no revenue come in for a month, you’d see a change real fast. Our power comes from our collective pool of money. We can’t afford to sit back and let the radicals on both sides guide the debate. The middle has to get angry and drown out the left and right. They can no longer speak for us.

So where is our radical middle? Who out there is willing to mobilize the middle to come together and vote with their pocketbooks since our elected leaders won’t listen to us anymore? Who will go on TV and make the left and right look like the polarizing idiots that they are? We need to find those centrist leaders - fast. My one requirement is that they don’t associate themselves with either party. They need to be willing to form a new party, one that isn’t motivated campaign contributions or lobbyists. Anyone out there who fits this profile? If so, please step forward and make your voice heard. We need you now more than ever.

FoofQueens.com

We’re really excited to announce the launch of FoofQueens.com!  We’ve been working hard on this site for eight months and are very happy with how it turned out.

The FoofQueens themselves are Rocky Krebs, LuAnn Kuyper, and Betty Tharpe. They’re three of the most fun, energetic ladies you’ll ever meet. The product they developed has the potential to drastically change the way people wrap gifts. Instead of boring wrapping paper or a gift bag, they developed a clear tubular product called GiftGloss that “glosses” the present. The website was developed to sell the product, but more importantly, it gives you ideas on how to “foof” your present. GiftGloss is just one element of the process, but foofing is the addition of tissue papers, trinkets or “embellishments,” and ribbons. Put this all together and you’ve got a present that will absolutely impress the recipient no matter what the actual gift is.

We’re so happy that the FoofQueens chose us to develop their website. It’s been an amazing project to work on. And credit needs to be given to Carrie Ratcliff (@careratcliff) who established the overall brand look and feel. She did a fantastic job. Her work made our job easy, so for that we say a big thank you to Carrie!

I think it was Gary Vaynerchuk who said business owners need to have an immigrant mentality. If it wasn’t him who said it, then I apologize to whoever did. But I thought about that concept today when I saw a Latino family cross the street near my home. They appeared to me as if they hadn’t been in the U.S. very long, therefore likely had a good chance of being immigrants. They sparked this reaction in me, something that I hadn’t experienced before. My sense was that these people were grateful to be here. They were grateful to have clean water, fresh food, and housing. And they were probably very grateful to have work. They looked like the many Latinos I’ve seen lined up early in the morning looking for a day job - anything that would pay.

So many of us who were born here take our situation for granted. We’ve become an entitled society. The “we deserve this because we’re Americans” mentality is starting to bring us down. Our insatiable appetite for “things” has made us weak.

What if we shifted our thinking and began to think like an immigrant? What if we became hungry for the simple things again, instead of the flat-panel TV and stainless steel appliances that we’re been made to believe we all deserve? Tough to swallow, I know. But it wouldn’t be that hard to do. In thinking like an immigrant, we’d put the needs of the group ahead of our personal needs. Through that action we’d make some real progress and change many of the injustices that occur in our country.

In the business sense, thinking like an immigrant will make you succeed no matter what gets in your way. I’ve seen countless examples of immigrants starting their own businesses because they know they only have themselves to count on. And they work harder than anyone to keep their dream of living here alive. Immigrants pass that work ethic on to their children who in turn want a better life than the one their parents had. I can see why those who oppose immigration are afraid. Immigrants are willing to out hustle them. And the offspring of these immigrants are more adept to out hustle their American counterparts.

Me, I’m not worried. I’m going to learn from these folks and try imitate their actions. I’m also going to raise my kids so they know that hard work is the only way to get things in a honest manner. If you want it, you got to work for it. Healthcare, though, is another matter altogether. But we’ll save that for another post.

I got a call this morning from a journalist by the name of Joel Rice. Joel wrote a story for McSweeney’s about one of our clients, the legendary skateboarder Christian Hosoi. Joel saw a retweet I sent out about his article and wanted to know how to use social media to drive people to his articles. After the call, I thought about what we talked about and I realized how much of a mystery social media is to most people. Dave said I should write up a post about this issue. So taking his advice I present to you the basics of social media.

Social Media 101:

1. Be yourself.
2. Talk about relevant things.
3. Give people value for following you.

Okay, that’s pretty much it. A lot of people will try to convince you that there’s a ’science’ behind all of this and it’s much more complicated than I’m making it out be. But those are the people who are trying to keep it mystical. They don’t want you to understand it because if you did they’d be out of a job. Just follow those three things above and you’ll be fine. In fact, the people who are the most successful with social media consistently stick to these principles.

So what’s a big company supposed to do? My answer: Hire someone and tell them to stick to these three principles. Easy as that. And make sure to inject some humanity into your messages. People are tired of canned advertisements. If you engage in social media, talk like a person, not a company pitchman.

Boulder Creek, Boulder, CO

It’s Wednesday afternoon and I’m sipping on a iced chai in a cozy cafe in Boulder, CO, called The Cup. Nice little place on Pearl St. From what I hear a lot of entrepreneurs work out of here. Boulder, as many of you know, is quickly becoming a tech start-up nirvana. People from the Valley are flocking here to get in on the action or start their own thing. And the people that move here want to work hard. Definitely no shortage of work ethic. Reminds me a lot of the work ethic we’ve got in Omaha.

One thing Boulder is doing that we should learn from is how the community fosters entrepreneurs. They bend over backwards to make sure they thrive here. We’re starting to get some things going in Omaha that will do the same, but it seems to be coming from small groups or individuals rather than the community. I think one thing that will help is if more businesses got involved in sponsoring entrepreneurial development. I’m talking the big, multi-million, mutli-billion dollar companies that call Omaha home. By fostering this development, it will only work to help our community stronger by bringing in smart, ambitious people. If Omaha could offer start-ups incentives to move here like affordable housing and affordable office space, we’d all be way better off.

One idea I have is to extend the Empty Room concept that What Cheer, Bluestone Development and SecretPenguin came up with. Our initial goal was to supply 6 artists or entrepreneurs with a one-month, rent-free space in the 22 Floors building to do whatever they wanted with it. The response was amazing and we were able to give some very talented people a place to get their start. If we could do that with one space, why not do it with several others? There are plenty of unleased properties all over Omaha that could house new start-ups. The owners of those properties would just need to be willing to let someone occupy them for a month or two. What would it hurt? They’re empty anyway, and could potentially be empty for a long time. (Imagine filling Crossroads with a hundred start-ups!)

If we sent the message out to the world that Omaha has rent-free space for start-ups to move their operation to, I think some fantastic things would happen. We may not have mountains and 300 days of sunshine a year, but we do have a low-cost of living, clean air, and plenty of hard-working people. Let’s put those last few pieces of puzzle in and see what happens.

Yesterday I had the pleasure of watching a small town parade in Ashland, NE. Every year the citizens of Ashland host a three day event to honor their town by blocking off streets, having a street dance, and one heck of a parade.

As I sat there I was amazed by the sense of community that these folks exhibited. Each organization that participated was damn proud to be there, from groups of cheerleaders to various Shrine clubs, to little kids sitting on the back of a flatbed throwing candy to the kids lining the street.

They were especially proud of the country we live in. American flags were everywhere. I felt that same pride this year, where last year I was a little disappointed in the way we were handling ourselves. We were in a different place last year, a dark and unsure place. But things feel like they’re starting to turn around. We’re showing the world a different face and the world seems to be responding. I know we’re still not safe from terrorists, and may never be, but at least we’re not alienating ourselves from countries who could be our friends.

This year, I feel proud to be an American again. And in a way I have the folks of Ashland to thank for reminding me of that. The smiles and waves from the people marching in the parade to the people smiling and waving from the curb gave me the feeling that in some places strangers really do care about one another. This is the America I want to belong to. I guess the trick is finding it. Luckily, I got a glimpse of it yesterday when I really wasn’t looking. Sometimes the best gifts are the ones you aren’t expecting.

Seth Godin sent out one of his daily posts this week with this video attached: GUY #3. I was mesmerized by the analogy this video so dramatically represents - the power of momentum.

For those of you who’ve been following my posts recently, you’ll know that I’m super excited about a ‘bridge’ concept I came up with. The goal is to link the coasts with the talent we have here in the Midwest. At first, my idea was to only promote Omaha businesses. But then others approached me about applying the concept to their communities. Now we have BridgetoMilwaukee.com and BridgetoToledo.com in the works.

What’s amazing to me is that Seth’s video came to me early Wednesday morning. I watched the video and could only say, “Wow!” Then a few minutes later I received an email from Mark Pannell (@7son75) saying he was moving forward with BridgetoToledo.com. He was my Guy#3. The timing couldn’t have been better.

So now my idea isn’t some crazy, dreamt up idea that won’t go anywhere. It’s happening. It’s a movement. We have momentum. All it takes for you to join is your willingness to participate. It won’t be easy, though. There’s some work involved. But if you’re a thought leader in your community you owe it to those around you to start your own ‘bridge.’

Send me an email if you’re interested in getting your community connected. I’ll fill you in on what we’re up to. And don’t worry if you aren’t in the Midwest. We want you and your community to thrive no matter where you are.

The last week has been really exciting for me. As more and more people hear about the BridgetoOmaha.com concept (B2O), the more emails I get from people who want to participate. I knew I wasn’t the only one who felt the need to collaborate with other tech/creative shops to get the word out about the talent that exists here in Omaha. Thanks to everyone who has responded so far. If you haven’t yet, feel free to send me a note and I’ll make sure you’re involved in the conversation.

I had a chance to sit down with Chris Rikli of Anova Solutions (@chrisrikli) yesterday to discuss this concept. We had a great conversation, during which he mentioned that not only do we need to advertise Omaha to the world, but we need to build community as well. Every participating company in B2O needs to know all the other companies involved. The site we develop is only half of the solution. The other half involves all of us getting to know one another, sharing information, building real bonds so we can lean on each other if necessary.

I saw a program on PBS last night that highlighted the modern Art and Crafts movement in the U.S. The thing that amazed me is that all of the artists involved themselves in some sort of community where they can spend quality time with like minded people. No one is interested in competing against each other. They come together to learn, to talk, to become inspired. And because they do that they are all better off in the end. There is no reason for any of us in tech/creative to operate alone anymore. B2O can help us connect with the world, but maybe more important, connect with each other.

And this isn’t limited to Omaha. Scott Wintheiser of Lightburn in Milwaukee wants the same thing for his community. He went ahead and bought BridgetoMilwaukee.com so that he can start a movement in his hometown. My hope is that more and more of these bridges will be built in towns similar to Omaha and Milwaukee. We’ll start these bonfires of thought that the coasts will no longer be able to ignore. We’ll also bridge the gap between these communities by linking all of the bridges together.

The next few weeks are crucial in the development of this site, and this community. We welcome your voice in it.