Employers are working overtime to sort through the details of the new health-care reform legislation and its effect on their benefits programs. Although the legislation creates lots of changes for employers and the medical insurance they offer employees, experts predict the impact on voluntary benefits to be minimal. That is good news for everyone, but it is an especially welcoming message for major medical brokers looking for new sources of revenue.
As health insurance becomes more widely available during the next few years, voluntary benefits will still be in demand to help employees strengthen their financial safety nets as they face more risks and costs. Because of its complexity, health-care reform will also create a growing need for effective benefits communication and education at the worksite. In fact, the need for voluntary benefits, coupled with effective benefits communication and education, will be stronger than ever. You do not want to miss out on this tremendous sales opportunity by taking a wait-and-see approach.
Many of the changes outlined in the legislation will take several years to implement. In the meantime, we are confident that:
o Voluntary benefits will be minimally affected in the short-term. The insurance market reforms in the legislation address comprehensive major medical insurance coverage and not plans considered excepted benefits from the portability, access and renewability requirements of HIPAA. Excepted benefits would include accident, disability, specified disease, and hospital indemnity coverage.
o Voluntary insurance coverage will still be a very relevant part of employee benefits.
o Voluntary products are in demand in today's marketplace — even for the shrinking number of employers with rich benefit plans — because they help pay expenses not covered by major medical insurance.
o Voluntary products can help employees strengthen their financial safety nets as more risks and costs become their responsibility.
o The need for benefits communication and education is growing.
o The shift of more benefits decision-making to employees increases the demand for clear information so they can make the best choices for themselves and their families.
o Even in a time of relatively high unemployment, employers still want to retain their best workers. Benefits communication helps employees understand and value their benefits package, as well as their employer's investment in benefits.
The flexibility and cost savings offered by voluntary benefits help explain their rising popularity among employers and employees in recent years. The 2009 sales of voluntary benefits nationwide increased 3.3 percent from 2008, and expectations are high for the near future. A recent study conducted by Eastbridge Consulting Group showed that 20 percent of employers indicate they are likely to add at least one employee-pay-all benefit in the next 18 months. Another Eastbridge study indicated that 82 percent of respondents believe that employees will be more enthusiastic about voluntary benefits 12 months from now.
Partner With an Expert
You will be surprised and relieved at what the right voluntary benefits provider can do for you at no cost. Instead of offering your clients the dreaded annual health insurance rate increases, you may be able to bring them cost-saving solutions with the potential to increase employee satisfaction and retention.
You no longer have to be the expert on every new product and every new trend in employee benefits. The right voluntary benefits provider knows about product and enrollment trends, can provide the most desirable products and services, has in-depth experience in worksite marketing, and can deliver ongoing solutions.
What's more, the right voluntary benefits partners truly are partners. It is your decision whether they have an active or silent role with your clients. You should feel comfortable and confident with them so you're able to call on their experience and insights and feel free to use them as a sounding board.
They should also offer comprehensive resources so they can actively market to your accounts and provide ongoing account service. You'll find that the right partner is like adding a skilled, professional employee to your agency at no cost to you.
What to Look for in a Partner
With more and more companies getting into the voluntary benefits arena, you have more choices than ever for finding a partner. So how do you choose?
Start by finding out if your potential partner has limits on account size. You want someone who says yes when you call for help, not someone who makes you jump through hoops or is only interested in the big accounts. You want a voluntary benefits partner that is eager to help you enroll accounts of any size and shape.
Look at your potential partner's track record. What is its persistency rate? This measure will tell you if the employees keep the products they have purchased. The higher the persistency rate, the better your partner is at initial and re-enrollments. You will also want to see performance survey results on the company's enrollment team.
You do not have to go it alone. The right voluntary benefits partner can help you maintain long-term relationships with your clients and provide additional income opportunities that will bring in more revenue year after year. Take advantage of the increased interest in voluntary benefits and benefits communication, and talk to a voluntary benefits provider today.
Chris Ginakes is a public sector manager for Colonial Life, with an office in Daytona Beach. He may be reached at 386-252-9806.
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