2013 delivered greater New Year to the Insurance and Benefits Industries. PPACA/Obamacare begun to kick in and HHS began rolling-out guidelines and regulations almost each day.
Disruptive Changes Creating Issues - Brokers, in addition to Carriers and Service Providers, face a slew of disruptive changes and new issues, included in this are:
Timelines for Implementation
A New Vocabulary of Terms
The Need for Strategies and Solutions for Assisting Clients and Potential Clients with their Concerns, Questions, and Demands
Reduced or Disappearing Commissions from Health Plans due to MLRs and Market Forces Creates the Need for New Revenue Streams
If these was not enough, economic uncertainties have placed budgetary constraints on all parties - Brokers, Carriers, Service Providers, Employers, Employees, and Individuals. In addition, Brokers face increased demands for serious amounts of expertise with reduced support from Carriers/Providers.
Let's examine these changes as well as the issues:
1) Timelines for Implementation - While a number of groups have formulated timelines for that implementation of PPACA/Obamacare, we recommend beginning with the Federal Government's Timeline.
2) A New Vocabulary of Terms - We have isolated the next terms which are either reasonably new or that Brokers should review - There are probably more! (Searching Google will provide multiple definitions and descriptions).
Adjusted Community Ratings - PPACA
Administrative Simplification Regulations
Cadillac Plans
CDHPs
CHIP Plans
Co-Ops - PPACA Related
Deductible Limits - PPACA Related
Dental Insurance Maximums under PPACA
Early Retiree Reinsurance Program
EHBs - Essential Health Benefits
Enrollment Waiting Period - Under PPACA
Excise Taxes - For Cadillac Plans
Federal Exchanges - Health Insurance
FFE - Federally Facilitated Exchanges
Free Choice Vouchers - Under PPACA
FSA Limits - Under PPACA
Grandfathered Plans - uunder PPACA
Guaranteed Issue - Under PPACA
HDHPs - High Deductible Health Plans
HHS - Health and Human Services
HRAs - Health Reimbursement Accounts
HSAs - Health Savings Accounts
Individual Mandates - Under PPACA
Interstate Insurance Compacts
Life Time Limits - PPACA Related
MLR - Medical Loss Ratios
Multi-State Plans - PPACA Related
NAIC - National Association of Insurance Commissioners
Navigators - Exchange Related
OPM - Office of Personnel Management
Out-of-Pocket Expenses - Rescissions
Penalties - Under PPACA
PPACA/ACA/Obamacare
Pre-Existing Conditions - Under PPACA
Preventive Care (A&B) - Under PPACA
Private Exchanges - Health Insurance
QHPs - Qualified Health Plans
QHIPs - Qualified Individual Health Plans
Risk Corridors - Related to PPACA
SBC - Summary of Benefits and Coverage
Section 125 with the IRSC
Section 105 from the IRSC
Shared Responsibility - PPACA Related
Section 105(b) of the IRSC
SHOP Plans
SPDs - Summary Plan Descriptions
State Exchanges - Health Insurance Subsidies
Tax Credits - For Providing Health Insurance
Tax Subsidies - For Health Insurance
Uniform Glossary of Coverage
Variable Hour and Seasonal Employees
Waiver Process - Under PPACA
3) The Need for Strategies and Solutions for Assisting Clients and Potential Clients with their Concerns, Questions and Demands - We suggest you can find 5 Profitable Strategies and Solutions that Brokers can implement with existing Clients and utilize to draw in New Clients. It is important to emphasize that this is the time for Brokers to arrive at out to Employers, Employees, and Individuals like a Trusted Advisor. It is essential to talk to decision-makers who're confused and require help. Schedule meetings - to see to not sell -using a variety of traditional Outbound and New Inbound Strategies. This is the time to be pro-active!
4) Brokers face Reduced or Disappearing Commissions from Health Plans due to MLRs and Market Forces - While Carriers in the Health Plans have slashed the commissions, this can be only one revenue stream for Brokers offering Benefits and Insurance. Brokers should continue to become, or become, the Trusted Advisor for your Employer's, Employee's and Individual's medical health insurance coverage. At the same time, the Broker should start introducing the very idea of Fee Based compensation because of their advising services. Most Employers don't know that Brokers aren't being adequately compensated from the Carriers for services. Employers are accustomed to investing in advice, ie. accounting, legal, risk management, etc. Brokers should also be the Menu Builder to the Voluntary/Worksite and Ancillary Benefit Plans. As Employees and Individuals take part in these plans and services (penetration), the commissions can be hugely profitable as well as an important piece on the Broker's Strategies for Success. The renewals generated from Employees and Individuals remaining on the Voluntary/Worksite Plans - year-after-year (persistency) - offers the Broker income required for maintaining ongoing Service.
Conclusion - In many ways 2013 and Beyond will be a wonderful time being a Broker - and also to become a Carrier or Service Provider! Brokers should embrace the disruptive changes and capitalize on the opportunities. PPACA/Obamacare isn't going away! There is a good deal to master and adapt to as guidelines and regulations roll-out. The massive changes for the traditional marketplaces have leveled the playing fields. There are no experts at coping with PPACA/Obamacare. No one has years of experience. There are Individuals and Organizations who will be maintaining the rules and regulations because they roll-out and which might be creating profitable strategies and solutions. http://cbis.com.au/ is a wonderful time to Partner and Affiliate with Organizations to both gain expertise and diversification.
2013 delivered greater New Year to the Insurance and Benefits Industries. PPACA/Obamacare begun to kick in and HHS began rolling-out guidelines and regulations almost each day.
Disruptive Changes Creating Issues - Brokers, in addition to Carriers and Service Providers, face a slew of disruptive changes and new issues, included in this are:
A New Vocabulary of Terms
The Need for Strategies and Solutions for Assisting Clients and Potential Clients with their Concerns, Questions, and Demands
Reduced or Disappearing Commissions from Health Plans due to MLRs and Market Forces Creates the Need for New Revenue Streams
Let's examine these changes as well as the issues:
1) Timelines for Implementation - While a number of groups have formulated timelines for that implementation of PPACA/Obamacare, we recommend beginning with the Federal Government's Timeline.
2) A New Vocabulary of Terms - We have isolated the next terms which are either reasonably new or that Brokers should review - There are probably more! (Searching Google will provide multiple definitions and descriptions).
Adjusted Community Ratings - PPACA
Administrative Simplification Regulations
Cadillac Plans
CDHPs
CHIP Plans
Co-Ops - PPACA Related
Deductible Limits - PPACA Related
Dental Insurance Maximums under PPACA
Early Retiree Reinsurance Program
EHBs - Essential Health Benefits
Enrollment Waiting Period - Under PPACA
Excise Taxes - For Cadillac Plans
Federal Exchanges - Health Insurance
FFE - Federally Facilitated Exchanges
Free Choice Vouchers - Under PPACA
FSA Limits - Under PPACA
Grandfathered Plans - uunder PPACA
Guaranteed Issue - Under PPACA
HDHPs - High Deductible Health Plans
HHS - Health and Human Services
HRAs - Health Reimbursement Accounts
HSAs - Health Savings Accounts
Individual Mandates - Under PPACA
Interstate Insurance Compacts
Life Time Limits - PPACA Related
MLR - Medical Loss Ratios
Multi-State Plans - PPACA Related
NAIC - National Association of Insurance Commissioners
Navigators - Exchange Related
OPM - Office of Personnel Management
Out-of-Pocket Expenses - Rescissions
Penalties - Under PPACA
PPACA/ACA/Obamacare
Pre-Existing Conditions - Under PPACA
Preventive Care (A&B) - Under PPACA
Private Exchanges - Health Insurance
QHPs - Qualified Health Plans
QHIPs - Qualified Individual Health Plans
Risk Corridors - Related to PPACA
SBC - Summary of Benefits and Coverage
Section 125 with the IRSC
Section 105 from the IRSC
Shared Responsibility - PPACA Related
Section 105(b) of the IRSC
SHOP Plans
SPDs - Summary Plan Descriptions
State Exchanges - Health Insurance Subsidies
Tax Credits - For Providing Health Insurance
Tax Subsidies - For Health Insurance
Uniform Glossary of Coverage
Variable Hour and Seasonal Employees
Waiver Process - Under PPACA
3) The Need for Strategies and Solutions for Assisting Clients and Potential Clients with their Concerns, Questions and Demands - We suggest you can find 5 Profitable Strategies and Solutions that Brokers can implement with existing Clients and utilize to draw in New Clients. It is important to emphasize that this is the time for Brokers to arrive at out to Employers, Employees, and Individuals like a Trusted Advisor. It is essential to talk to decision-makers who're confused and require help. Schedule meetings - to see to not sell -using a variety of traditional Outbound and New Inbound Strategies. This is the time to be pro-active!
4) Brokers face Reduced or Disappearing Commissions from Health Plans due to MLRs and Market Forces - While Carriers in the Health Plans have slashed the commissions, this can be only one revenue stream for Brokers offering Benefits and Insurance. Brokers should continue to become, or become, the Trusted Advisor for your Employer's, Employee's and Individual's medical health insurance coverage. At the same time, the Broker should start introducing the very idea of Fee Based compensation because of their advising services. Most Employers don't know that Brokers aren't being adequately compensated from the Carriers for services. Employers are accustomed to investing in advice, ie. accounting, legal, risk management, etc. Brokers should also be the Menu Builder to the Voluntary/Worksite and Ancillary Benefit Plans. As Employees and Individuals take part in these plans and services (penetration), the commissions can be hugely profitable as well as an important piece on the Broker's Strategies for Success. The renewals generated from Employees and Individuals remaining on the Voluntary/Worksite Plans - year-after-year (persistency) - offers the Broker income required for maintaining ongoing Service.
Conclusion - In many ways 2013 and Beyond will be a wonderful time being a Broker - and also to become a Carrier or Service Provider! Brokers should embrace the disruptive changes and capitalize on the opportunities. PPACA/Obamacare isn't going away! There is a good deal to master and adapt to as guidelines and regulations roll-out. The massive changes for the traditional marketplaces have leveled the playing fields. There are no experts at coping with PPACA/Obamacare. No one has years of experience. There are Individuals and Organizations who will be maintaining the rules and regulations because they roll-out and which might be creating profitable strategies and solutions. http://cbis.com.au/ is a wonderful time to Partner and Affiliate with Organizations to both gain expertise and diversification.