Brokers Leaving Market, Groups Falling Out

[czmudzin]

Does anyone else see the group market going under and employers letting employees just go out and find their own plans through exchanges?

If it costs employers a chunk of change to offer standard benefits to employees, when they can go into the marketplace and find a equal or better plan for the same or better price, why would anyone think the group market would remain stable?

At the same time you have many brokers and agents fleeing the individual market because they don't feel like it's worth it. If the group market falls apart and the individual market gets flooded, and a broker has a good platform to streamline everything, that's a pretty good and effortless stream of revenue.

I'm not saying this is going to happen any time soon, but it looks like the market will head that way eventually.

 

[Yagents]

So, I can't wait to hear what private exchange you sell

 

[czmudzin]

Sarcasm at it's finest.

Truth be told I'm 20 year broker turned software designer, and we have an exchange, but I'm just wondering why people don't see the group market coming down.

 

[Yagents]

I hate being right..............so does my wife.

 

[czmudzin]

Ah yes, don't they all?

 

[kgmom219]

The women are always right....

Having said that..I'm putting my money on 2016 and the group market collapsing.

 

[Quotebroker]

when they can go into the marketplace and find a equal or better plan for the same or better price, why would anyone think the group market would remain stable?

There have been some good threads on this recently. The qualify of plan may be comparable, but the quality of network available via group coverage in my state is not even close. The white collar, higher income employees are used to this system and will be negatively affected by a switch to individual in that their premiums are no longer pre-tax and their physician choices have been diminished.

From the employer perspective, insurance is still a vital part of a benefits package used to attract high value employees. If that is removed, they may be at a hiring disadvantage.

I could see this being a viable option for smaller micro groups and for lower skill/income groups. My law firms, mortgage brokerages and the like would not be happy with being thrown into the individual market.

 

[pahealthquotes]

Does anyone else see the group market going under and employers letting employees just go out and find their own plans through exchanges?

If it costs employers a chunk of change to offer standard benefits to employees, when they can go into the marketplace and find a equal or better plan for the same or better price, why would anyone think the group market would remain stable?

At the same time you have many brokers and agents fleeing the individual market because they don't feel like it's worth it. If the group market falls apart and the individual market gets flooded, and a broker has a good platform to streamline everything, that's a pretty good and effortless stream of revenue.

I'm not saying this is going to happen any time soon, but it looks like the market will head that way eventually.

the small group market is vanishing... why ? No more pre x and
60 % are qualifying for tax credits.

 

[czmudzin]

There have been some good threads on this recently. The qualify of plan may be comparable, but the quality of network available via group coverage in my state is not even close. The white collar, higher income employees are used to this system and will be negatively affected by a switch to individual in that their premiums are no longer pre-tax and their physician choices have been diminished.

From the employer perspective, insurance is still a vital part of a benefits package used to attract high value employees. If that is removed, they may be at a hiring disadvantage.

I could see this being a viable option for smaller micro groups and for lower skill/income groups. My law firms, mortgage brokerages and the like would not be happy with being thrown into the individual market.

Yes - I totally agree that companies looking to attract high-value employees are going to keep their group plans because 1) they need the employees and 2) they have deep pockets.

But I think small group is going to go under and large group will be few and far between for the most part.

 

[Quotebroker]

Yes - I totally agree that companies looking to attract high-value employees are going to keep their group plans because 1) they need the employees and 2) they have deep pockets.

But I think small group is going to go under and large group will be few and far between for the most part.

I think the companies looking to attract high value employees are not just the largest of the large. Plenty of white collar business is conducted by companies under 100 and even under 50.