Smart gym owners are no longer relying solely on traditional marketing to fill their fitness facilities. They are turning to an often-overlooked source for new members: Health Insurance-Funded Memberships. By educating the masses, your gym could be in line for a financial windfall if done correctly. After all, who wouldn’t want a free or discounted gym membership?
What Is This Witchcraft?
Not long ago, I was talking to one of my gym buddies, and he said he had memberships at three different gyms. I knew he wasn’t swimming in money, so I asked how he was affording it. He explained from his health insurance through his job. He told me it was an unexpected perk and that his health insurance completely covers the cost as long as he visits the gym a certain number of times a month.
I remember sort of patting him on the back, saying that was great, and proceeded on with my workout. I felt there had to be more to it than that. I thought maybe he had a medical problem or disability, so insurance was providing support to help him get back on his feet. But still, I kept it in the back of my mind for a couple of months until I finally did some investigative work. So I checked with my health insurance, did some digging because it appeared they wanted to hide this “perk” from me, and my monthly gym membership fee is now cut in half, with insurance taking care of the other half.
Not one to keep a secret, I shared this knowledge with about 20 others. Almost all reported back that their health insurance was now footing the bill, at least partially, for their membership fees.
Use This Knowledge to Increase Your Revenue
Most of us get headaches from dealing with our health insurance, and for good reason, so when we get the chance to actually put it to good use, we should take it. Major health insurers and Medicare Advantage plans now routinely will cover gym access through various popular programs such as SilverSneakers, Silver&Fit, and other policies.
These programs will either pay gyms directly, reimburse the members, or partially cover at least a portion of the membership. And we don’t even realize it because if there is one thing we all know, health insurance providers like to hold on to your money tighter than Mr. Howell on Gilligan’s Island.
Millions of insured Americans qualify for these benefits. Health insurance providers view it as a way to hopefully lower healthcare claims since regular physical activity will combat the two highest causes of death: heart disease and cancer. Exercise helps fight against both heart disease and cancer, along with long and expensive hospital stays. And not only does it lower the risk of developing these health issues, but it also improves the outcome for those who already have these conditions.
Your Next Step as a Gym Owner
This could be a massive opportunity for your gym if you can create the right marketing strategy to make potential members aware of the deal they could be getting by using their health insurance to recoup expenses for a membership. But to take it even further, ask your current members if they are using their health insurance to cover the cost of their memberships. You might be able to help them get a discounted membership while you still collect the full amount. The retention rates would be extremely high as people would be less likely to go elsewhere if they are receiving such a great bargain.
The next step is to partner with these health insurance companies to attract motivated future members. You can join the networks and become a participating location for SilverSneakers, Silver&Fit, One Pass, and other major insurer wellness networks. By getting approval, you could land thousands of new members in your area who are searching for fitness facilities that are wanting to work with their health insurance.
Make the Public Aware
Once your gym is part of the network, create marketing campaigns highlighting the benefits that most people are not even aware exist. Target the eligible insurance holders, their partners, and the rest of their family. You could be selling multiple memberships to the same family unit since they all share the same health insurance package.
Streamline Approval
A well-trained staff will save you many headaches. Train your front desk to be able to verify benefits quickly so the public can become new members instantly and start that same day. There could be other nearby gyms available that will work with health insurance as well, so don’t let that potential member leave your facility without closing the deal.
Consider Upselling
If you just landed a new member who is having their membership fee completely covered by their health insurance, it could be the perfect time to upsell them on items. After all, if their membership is completely free, maybe they will spend a bit of their own money on personal training, small group classes, or recovery services.
Untapped Goldmine
By using a person’s health insurance to your financial advantage, you will be able to create new members without much need for expensive marketing. Immediately check your gym’s eligibility with the health insurance companies and make any adjustments needed to qualify. By pursuing health insurance partnerships, you will be able to create a steady pipeline of new members.
Gym Insight
With the weather starting to warm up, it won’t be long before the gyms are packed. By adding Gym Insight software, you will be ready. And not only does it provide fully automated door access 24 hours a day, flexible POS options, revenue recording analysis, and much more, but the free Member app will feel like a premium service. Call 855-FOR-GYMS (855-367-4967) for a free demo and advice on how to take your gym to the next level.