The health insurance market is undergoing a dramatic transformation. As health insurance professionals learn to navigate this “new normal,” the ones who adapt will thrive. This article contains information on the future of health insurance in the U.S., why premium reimbursement is leading the way, and how premium reimbursement helps insurance professionals adapt and thrive in a changing market.
A Major Shift is Happening from Group to Individual Health Insurance
According to our recent Whitepaper, The individual health insurance market is expected to expand to more than 150 million insureds by 2025. With group health insurance costs that are unsustainable and all of the new advantages of individual health insurance, we predict that 60% of small businesses will transition to individual health insurance by 2017.
Chart: The Inevitable End of Small Business Health Insurance
Why and How Premium Reimbursement is Leading the Way
With a premium reimbursement plan, businesses offer employees a monthly healthcare allowance to use on individual health insurance. Employees purchase their own health insurance and are reimbursed up to the amount available in their balance.
By enlisting the services of a premium reimbursement software provider, the business eliminates the time, costs, and administrative hassle of offering health benefits.
How Premium Reimbursement Helps Insurance Professionals Adapt and Thrive
Premium reimbursement allows brokers to offer a solution that others are not. By offering a diversified solution that is tailored to each business, insurance professionals will be able to attract new customers that need and covet the services of a health insurance professional. Many health insurance professionals use premium reimbursement to capture new business outside of open enrollment.
Additionally, since small groups are dropping employer-sponsored group health insurance, this is the solution to retain those clients. Premium reimbursement provides a true health benefit that saves time and money for the client, while having the tools in place to keep new hires coming back to brokers and insurance agents for individual health insurance policies.
The Ideal Customer Profile for Premium Reimbursement
Businesses Not Offering Healthcare Benefits
Ideal Business Size: 1 - 50 W-2 Employees
Common Business Challenges:
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No recruiting / retention tool
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Seeking tax savings
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Compliance
Typical Decision-Makers:
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Gatekeeper to Owner
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Business Owner
Industry Verticals:
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Professional practices
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Non-profits
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Tech startups
Businesses Currently Offering Employee Healthcare Benefits
Ideal Business Size: 2 - 500 W-2 Employees
Common Business Challenges:
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Current group plan too expensive
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Seeking recruiting / retention tool
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Administrative time
Typical Decision-Makers:
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Management Teams
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HR
Industry Verticals:
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Manufacturing
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Professional services (i.e. consulting, accounting, etc.)
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Healthcare (urgent care, assisted living, etc.)
Do you have any questions on adapting to the changing health insurance landscape?
