This pivotal year is about half over and most benefit advisers are still in denial about the operational and financial impact of health care reform on their business. The overwhelming majority do not have a plan to adapt and change to the new market realities. Do you have a plan? Why not? Even if you retained 100% of your current clients, you likely will see compensation levels decline by 20-40% depending upon the state(s) comprising your local market. Nationally, group medical compensation in the small case market, which comprises 90% of employers, will decline to 2-3% of premium or a PEPM fee of $18-$22.
What else should you consider doing to be a survivor? You need a process for managing change. You need a process to help your clients plan their benefits decisions and expenditures. Your clients need a roadmap, a strategic plan, to guide their tactical decisions; both their actions and reactions. To do this, you will need to become much more consultative in your approach. And you will need a formalized process, training and tools in order to make this transition successfully. Your primary value proposition cannot be as the access point to products. Your clients need your expertise and you need to reinvent yourself to remain relevant.
