Legacy Health Insurance Broker Reacts – Fears Market Trend – Hones Negative Selling Skills As Best Defense Against ICHRA Infidels
We are seeing a dynamic shift in employee benefits. ICHRA is rapidly becoming the center of the universe, a catalyst for movement away from employer based health care.
For the first time since Blue Cross was established with the help of the Dallas Independent School District in the early 1900’s employees are free from the yoke of employer control of their health care needs.
Employers see freedom too. Freedom from increasingly intrusive government control of health care. Freedom from many of the associated mandates, punishing government penalties, and fiduciary based lawsuits.
Traditional employer sponsored health plans will become obsolete. TPA’s must remove their blinders and make preparations. Independent TPA’s would be wise to lay plans now by building a cutting edge ICHRA administration platform to include voluntary benefits in the mix. They would be wise to further expand their platform to enable employers to purchase and manage all their property & casualty needs under one roof.
TPA admin fees will be lower than they are today. Many of today’s middlemen will no longer be needed. There will be less work, fewer support employees, almost all AI and technology based.
For brokers to survive and thrive long term they most have ownership interest in all or part of the service offering. Otherwise to broker for TPA’s and other organizations puts them at the mercy and whims of those who control the product. There is little broker loyalty in the market as has been demonstrated over and over again in years past. There will be less loyalty going forward.
Former Self-Funded Employer Touts The ICHRA
We received the following unsolicited email this morning from a client we have worked with for more than 20 years who moved his plan to ICHRA’s last year. He’s happy he did.Continue reading
