Advisers weigh-in on the future role of the benefit broker
August 7, 2015 11:53 AM
Overview:
The IRS has issued a new glimpse at compliance with the ACAs Cadillac tax and a well-discussed EBA article asked advisers to ponder which of three broker models will survive? Heres what EBA readers had to say:
Within that broad range of broker-types are good and bad brokers.
There are many types of brokers who serve many types of customers. Within that broad range of broker-types are good and bad brokers. Bad brokers (who only sell and don't provide value) will continue to fade away in favor of more dynamic and efficient brokers; some using new technology. That has always been the case and Zenefits belongs to one broker model, integrating HR with benefits technology. I don't agree with the simple 3 buckets described here or the assertion that only one type of broker will win. There are many types of broker models. Good brokers who adapt to meet their clients needs and leverage technology to be more efficient will win. That's at least 12 buckets or types by my count.
Posted by Michael L.
Posted by Michael L.
The answer is all of the above.
"These are not mutually exclusive. The answer is all of the above depending on client needs and client size. The skills and services needed to service a 50 person firm are different from a 500 person firm. However there are many brokers that service both. The smaller employer may need Zenefits-like services where the larger employer needs more analytical services. Smaller employers have pooled rates and larger are experience rated. The two are very different.
Posted by Joe. M
Posted by Joe. M
It will be the broker who gets back to helping employers achieve their goals for offering benefits.
Personally I think that it is none of these. It will be the broker who gets back to helping employers achieve their goals for offering benefits. Employees see increasing out of pocket costs, reduced benefits and pay stagnation and no one is addressing this. 'Shopping' the health insurance is irrelevant and all the HR stuff and compliance advice is nice but doesn't address the real issues and ultimately opens the door to a Zenefits.
Posted by Mel S.
Posted by Mel S.
The Cadillac tax is just one of many provisions of the ACA that makes absolutely no sense.
"Once you get past the rhetoric and false economic mathematics which attempt to justify this provision, one is left with this simple reality: Under the ACA, if you offer no benefit plan you are penalized (taxed); if you offer a benefit plan 'they' deem as too good, you are penalized (taxed). So does this mean the goal of ACA is to have everyone offer a mediocre plan where no one is happy? The ACA is a bad joke, and needs to be repealed completely."
Posted by Michael C.
Posted by Michael C.
You will need a CPA just to figure out what your ACA tax is each year.
If they were to start tweaking [the Cadillac tax] to apply here but not there, to be higher here and lower there, what we would end up with is something looking like the current income tax code. In other words, you will need a CPA just to figure out what your ACA tax is each year.
Posted by Bill H.
Posted by Bill H.
