The recently released 2014 Aflac WorkForces Report for Brokers says that brokerages of all sizes have accepted the reality of health insurance reform and are responding to industry changes in numerous ways.
The Executive Summary from this year’s report says findings indicate what while some brokers have left the industry and others are still considering doing so, “those who have adapted to the new health insurance reality are determining the best ways to successfully navigate the changing landscape.”
Still, the fallout from reform continues to reverberate, as evidenced by today’s top 5 issues for brokers, according to the report:
- Rising health care costs affecting client decisions (47%)
- Understanding the impact of health care reform (38%)
- Remaining relevant (29%)
- Client uncertainty about health care reform (27%)
- Diversifying benefits offerings (26%)
Here are 14 more statistics of note from the 2014 report:
• 49% of those who participated in the survey say they are considering exiting the industry altogether, primarily due to concerns about the ACA.
• 67% say they’ve seen their peers exit the business in the past year.
• 36% of brokers completely or strongly agree that the ACA presents an opportunity for their business.
• 50% of brokers say they are confident about their firms’ futures and the future of the broker industry.
• 38% of brokers predict the proportion of voluntary benefits they sell will increase over the next 12 months.
• 24% have been offering their clients voluntary benefits options for less than one year.
• 23% have been offering their clients voluntary benefits options from one year to less than three years.
• 53% plan to increase the amount of revenue they generate by voluntary insurance.
• 64% include voluntary insurance among their offerings to satisfy the needs of clients’ employees.
• 44% of brokers who don’t provide clients’ employees with access to voluntary benefits are more likely to be coping with decreasing client bases, and are more than twice as likely as those who do to be experiencing declining sales.
• 56% of companies participating in the survey say they increased employees’ copayments and/or shares of premium last year and 59% plan to do the same before the end of 2014.
• 19% of companies moved away from traditional major medical insurance in 2013 and instead paired HSAs with HDHPs. That one-third more than the 14% that said they planned to make this change in the 2013 Aflac WorkForces Report.
• 45% of companies surveyed intend to increase their reliance on brokers or insurance providers when making changes to their benefits plans, in part because only 40% of companies say they understand health care reform extremely or very well.
• 21% of employees surveyed say they understand extremely or very well how health care reform affects their lives.
The 2014 Aflac WorkForces Report is the fourth annual Aflac employee benefits study examining benefit trends and attitudes. The study, conducted in Jan. 2014 by Research Now, captures responses from 1,856 benefits decision-makers and 5,209 employees from across the United States. To learn more about the Aflac WorkForces Report, visit AflacWorkForcesReport.com.
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