Though benefits brokers say they see a big opportunity in the changing health care landscape, nearly half are considering exiting the business and 67% know of peers who have done so in the past year. A survey commissioned by AFLAC found that while the usage of brokers has increased, smaller advisors seem to be the ones having the most issues adapting to health care reform.
The top five issues facing health care advisors are:
• Rising health care costs
• Impact of the ACA
• Remaining relevant
• Diversifying services
• Client uncertainty about the ACA
Benefit brokers who have traditionally represented one carrier are now trying to be more consultative, with some moving to the role of so-called “navigator” under the ACA — a low-profit, nonrenewable revenue source with little or no upside.
With health care moving from a DB to a DC environment and plan advisors having established relations with plan sponsors, this seems like an opportunity with so many benefits brokers exiting the business. What do you think?
