Eighth annual survey also indicates brokers
remain a critical component in managing employer healthcare costs,
while revealing employers offering more voluntary benefits
products
CARMEL,
Ind., March 20, 2024 /PRNewswire/ -- Optavise, a
one-stop-shop for employee benefits programs, combining voluntary
benefits products and services, technology and expert guidance,
today released its 2024 Annual Benefits Broker Report, "Government
Mandates Take Center Stage: Unveiling the Dominant Market Force for
Benefits Brokers."
Findings from the eighth annual Optavise report show that while
clients continue to request new, innovative ideas to combat rising
healthcare costs, they are looking to their broker partners for
help with regulatory- and compliance-related issues more than other
factors.
Optavise surveyed 70 U.S.-based health insurance brokers,
representing the top 15 brokerage firms, for the report. Among the
key highlights:
- 69% of brokers cite ever-changing federal and state mandates as
a leading market force driving their firms to add new products and
service offerings.
- 44% of brokers state that compliance is one of the top three
issues for which employers request their services, trailing only
new and innovative ideas for cost containment (57%) and benefits
communications support and strategies (46%).
- 94% of brokers report high or moderate reliance by their
employer clients for compliance and reporting related to their
healthcare benefits.
"We've seen an increase in both state and federal reporting
requirements as well as regulations on the types of benefits which
can be offered within a given state, which are driving a sharper
focus on compliance," said Kim
Buckey, vice president, client services, Optavise. "The
myriad regulations that govern employee benefits can carry
significant financial and even legal ramifications for employers,
whether through fines, penalties and potential litigation costs.
Many of these issues can have a direct impact on employee
satisfaction and engagement, and employers are increasingly looking
toward brokers for support."
Brokers remain a key player in healthcare cost
management
As employers continue to ask their broker partners to help
manage their healthcare costs, they are particularly interested in
prescription drug management programs (77%) as a cost-control
measure.
"In an effort to control costs, we are seeing more employers
implementing programs that include mandatory generic prescriptions,
mandatory mail order, step programs and partnering with various
healthcare entities," said Buckey.
Other popular cost control measures include shifting to (or
from) self-insured coverage (68%), implementing point solutions to
target specific health needs (60%) and adding clinical advocacy to
help employees become better healthcare consumers (55%).
Another increase in voluntary benefits products
The number of employers adding voluntary benefits products to
their portfolios continues to grow (73%, up from 64% from 2023).
Nearly half (49%) of broker survey participants note that voluntary
benefits provide "a lot of value to their business," with another
45% reporting they provide at least some value. The three most
popular voluntary products continue to be accident (65%, down from
71%), critical Illness (63%, down from 68%) and hospital indemnity
(49%, up from 39%). Other voluntary products gaining traction
include pet insurance (23%, up from 19%) and ID theft protection
insurance (22%, up from 13%) and legal services (15%, up from
11%).
Additionally, reflecting an aging population, potential state
coverage requirements and an increased awareness of its need,
brokers also reported employer interest in long-term-care
insurance, with 17% of brokers ranking it among the top
supplemental products their clients have added in the past
year.
Continued high demand for benefits communications
support
An increasing number of brokers report seeing high demand for
benefits communications support from their current and prospective
clients (57%, up from 49% in 2023), while 37% reported moderate
demand. Additionally, nearly every broker surveyed provides these
services, either directly or in partnership with benefits
communications specialists: 96% offer materials such as enrollment
guides and brochures, 94% provide compliance communications, 91%
provide virtual communications support and 90% provide in-person
support.
"Clear, open and consistent communication about benefits is
increasingly important," said Buckey. "The more information
employees have about the types of options available and how to use
them, the more confident they will feel about making the right
decisions on their benefits."
Methodology
Optavise surveyed 70 U.S.-based health
insurance brokers, representing the top 15 largest insurance
brokerage firms on three principal areas: their current service
offerings, which services deliver the most business value, and how
their models are likely to evolve to help them compete in the
coming year. Most brokers surveyed (81%) service the mid-market
space (100-1,000 employees). Seventy-eight percent service the
enterprise market in some capacity, with 9% of those brokers having
more than 50 clients with over 1,000 employees.
About Optavise
Optavise provides personalized employee
benefits solutions to help employers and their employees optimize
their benefits and make better health and financial decisions.
Optavise offers a unique combination of innovative technology,
flexible voluntary benefits, and experts who educate and
communicate with employees about their benefits. A part of the CNO
Financial Group (NYSE: CNO) family of brands, Optavise operates
through direct sales to employers and a nationwide network of more
than 10,000 broker partners and over 600 dedicated agents who serve
nearly 20,000 employers. For more information, visit
Optavise.com.
Media contact:
Michael
McNamara
Michael.McNamara@cnoinc.com
(860) 549 6442
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SOURCE Optavise