Guiding Businesses to Health: The Broker's Role in ICHRA Adoption
Nov 27, 2023
Rising health insurance costs are impacting everyone, from individuals to the largest employers. This, of course, results in brokers worrying about client churn. It's challenging to stay competitive in price while focusing on continued growth.
ICHRAs could represent a turning point for insurers, providing a proven way to give better client experiences while also reducing their costs and boosting your bottom line.
ICHRAs Help You Stay Relevant for Your Clients
Insurance brokers that only provide potentially expensive group insurance plans could face serious problems. Rising premium costs do not translate into increased profits for insurers. Recent reports suggest the opposite is true. Continuing to try and offer outdated, irrelevant products at soaring rates is a sure way to price yourself out of the market.
ICHRAs provide clients with various cost options for themselves and their employees. Businesses know they have to abide by ACA standards and other compliance regulations, and they trust insurers to provide them with products that empower them to do that. Reward that trust and loyalty by offering relevant products that help businesses position themselves as great places to work with benefits that make meaningful differences in their workers' lives.
Expand Into New Markets
As the market for group plans stagnates, there has never been a better time for insurers to explore new market options. If, in the past, you've generally avoided employers with a mix of full-time, part-time, and seasonal staff due to the complexities involved here, ICHRAs provide the ideal opportunity to dive right in.
The cover for different classes of employees means you can create agreements with clients that cover multiple employee types. This provides flexibility that delights beneficiaries and has potential savings for your clients. Plus, it can massively simplify the work you must put into creating bespoke plans—mainly when working with an experienced partner like Venteur.
Brokers that embrace the ICHRA model can break out of their current niche and work with clients across various industries who may be dissatisfied with current group plans. The potential to cut costs while becoming a better employer is a massive marketing opportunity for brokers looking to expand their operations.
Become a Supportive Partner
Organizations across multiple industries may want to move to ICHRA plans but not understand the process. They may need more clarification about ICHRAs, such as believing they're only for micro-businesses. ICHRAs can benefit businesses of all sizes and types by promoting flexibility and empowering employees to take control of their healthcare choices.
Employers should know that they can save money by switching to ICHRA products—and employees can save money, too. 40% of employees with insurance have struggled to pay for medical care due to their healthcare plan not being fit for purpose. They might miss vacations, stop buying new clothes, or sacrifice their savings. Preventing employees from getting into these situations could be a big draw for employers serious about investing in their people.
Your clients should also understand that providing flexible, bespoke benefits to their employees is a crucial way to differentiate themselves in their industry. Be the supportive insurance partner who guides your clients through the minefield of misinformation about ICHRAs. Position yourself as a broker here to simplify things for businesses, and let ICHRAs be how you do that. Make sure you can define the 11 different employee classes and help companies offer plans that suit their entire workforce.
Partner With Venteur for Better Client Solutions
Venteur offers AI-powered benefits choices for organizations. This includes powerful tools for brokers to help them differentiate themselves from the competition, cutting through the noise to provide better client solutions. Add value to your clients' propositions by including ICHRAs in your product portfolio. We can drastically reduce your time to configure custom plans for clients, giving you back the resources you need to scale your organization up. Spend time connecting with clients and building lasting relationships while Venteur's digital solutions take the tedium out of manual analysis.
Want to know more? Why not sign up for one of our "ICHRA Made Easy" Master Class Events? We talk to brokers through client acquisition, retention, administration, compliance, and more. Discover why so many insurance brokers embrace ICHRA as the new way to grow their business.
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