By Steve
Davis - August 4, 2015
It might not disappear entirely, but
the small-group market is changing due, in large part, to the Affordable Care
Act (ACA). To help retain clients, some health insurers have launched
administrative services only (ASO) products designed for increasingly smaller
employers. Not long ago, few employers outside of the FORTUNE 1000 were
self-insured.
Next month, Blue Cross Blue Shield of
Kansas City will roll out an ASO product aimed at businesses with as few as 25
workers. The company also restructured its sales department in response to the
changing market. Over the past two years, almost 5,000 small-group members have
moved to individual plans, the vice president of sales told me during a recent
phone interview. Self-insuring lets employers sidestep the ACA’s essential
health benefits requirement and could be less costly than fully insured plans.
But self-insurance won’t work for all businesses. A company with a young and
healthy population might see lower costs, but a couple of catastrophic
illnesses or accidents could erode any savings.
Since July 2015, sales staff in the
small-group market has been split up into areas of expertise, such as ASO
products or the individual market. When a broker needs more information about
ASOs, for example, there is someone to ask. Under the new structure,
small-group and individual markets are merged and are serviced by one of two
sales teams. Rather than paying commissions to some internal reps for sales and
others for renewals, commissions are now based on their entire block of
business.
http://aishealth.com/blog/health-plan-business/if-small-group-business-goes-awaywhere-will-it-go?utm_source=Real%20Magnet&utm_medium=Email&utm_campaign=79471213
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