It's been a perfect storm for agents and brokers selling health plans to small businesses, Florida's economic lifeblood. The worst economic downturn since the great depression, the uncertainty of health care reform, and the ever-rising cost of care have converged to create a difficult selling landscape. There are emerging opportunities, however, that can help ease the strained small group sales environment. To benefit, brokers and agents need to understand these factors and communicate them effectively to current and prospective small group customers.

Premium Relief Is on the Way
When the cost of services and member utilization spiked a few years ago it was hard for pricing to keep up. That led to major rate increases and a very difficult market for agents. In Florida, we saw average premium increases of 15 percent and higher during 2009 and much of 2010. Many businesses began to drop health insurance as an employee benefit. Decreased employee enrollment also created a compliance dilemma, making it hard for agents to bring in new plan options from other carriers.

Today the underwriting cycle has shifted. Customer demand and pricing are no longer at opposite ends of the spectrum.  Insurance carriers have a good idea of the group health landscape for the next two years in terms of plans and programs despite ongoing political maneuverings over health care reform. That means premium relief is on the way as prices stabilize and a flattening trend is predicted.