Benefits: Boon or Bust?
By the time this edition of Insurance Journal is printed and distributed, the U.S. Supreme Court likely will have issued its ruling on the challenges to federal healthcare reform legislation passed in 2010.
No matter how the Court decides on the Patient Protection and Affordable Care Act (PPACA), however, the evolution in the provision of group health insurance and benefits that has been going on for several years will likely continue on its current path of agents providing more consulting services and moving to a fee-for-service revenue model, insurance professionals who are active in this line say.
One reason is that providing health insurance and benefits has become so variable and costly for employers, they need all the help they can get. And they are willing to pay for that help if they are confident in the accountability and expertise of their agent/partner/consultant. This is where the opportunity lies for property/casualty agencies seeking to diversify their operations and expand into additional avenues for increasing revenue.
It requires investment in time, tools and resources, successful benefits brokers say, but it’s worth it.
Studies on group health insurance and benefits seem to be a national pastime these days, as the PPACA and its opponents have raised the discussion of these issues to a higher level.
One recent study, released by the Society for Human Resource Management (SHRM), highlights the need for highly informed consultants that can help employers and their employees navigate the new world of employee benefits. It’s not just about insurance anymore; it’s about the whole package.
Due to economic factors, employment-related legislation and rising medical inflation, employers are shifting more of the responsibility for managing their benefits plans to employees. They are also rewarding employees for improving their health.
“For example, the percentage of employers offering health and lifestyle coaching jumped from 33 percent in 2008 to 45 percent in 2012, and rewards or bonuses for completing a health and wellness program increased from 23 percent in 2008 to 35 percent in 2012,” the SHRM stated in its release announcing the study.
Agencies that are prepared to assist companies and their employees to best take advantage of the myriad options for managing their healthcare risks would seem to have a leg up in this expanding field.
Read more about what successful agencies are doing to maintain relevance in this sector in our health and benefits special reports in both the national and regional sections of this issue of Insurance Journal.