PPACA, which mandated additional health coverage benefits while not addressing cost containment provisions (such as provider competition and transparency), will inevitably lead to uncontrolled costs. Therefore, many employers with low-skilled employees will discontinue offering insurance. While the penalty will impact some employers, many will find it advantageous to manage their employees to fewer than 30 hours per week, exempting them from the penalty. 

In the exchanges, consumers are going to be shocked by both the cost and type of benefits. Even if a person qualifies for a subsidy, they will still have a personal responsibility to pay some level of premium for a medical plan option inside a state exchange. For instance an individual making $29,000 a year would be required to pay $2,315 of their annual health insurance premium. Run your own numbers at the Kaiser Foundation website, www.kff.org. The individual mandate penalty for this person would be $193 for the year. What do you think will happen? And the benefits consumers are most interested in—care for things like a broken leg—are going to be subject to costly deductibles and coinsurance levels. Conceivably, there will be several thousand dollars of out of pocket expenses for this person.

So what happens to the part-time employee? They have full-time lives and full-time pressures to provide for themselves and/or their families. In many instances, employees look to their employer for answers and that will still be the case going forward. Employers will still maintain an incentive to be perceived by employees as providing enhanced benefits relative to other employers. Competition to recruit and keep the best part-time employees will increase. 

The most powerful tools for attracting and retaining workers are benefit plans that present an easily identifiable value. Even if voluntary, employees appreciate the knowledge of an HR department, the ease and pre-tax benefits of payroll deduction, and the education that comes with a common benefit structure among a large number of co-workers. Employers have buying power which creates affordability and better benefits for employees. Employees win when they can buy benefits through their employer. Employers win by providing something that employees cannot get as individuals. This is what is compelling many carriers and brokers to focus on the voluntary benefits market. The benefits that employees value and want to purchase such as dental, vision, life, disability, hospital indemnity, accident, and outpatient indemnity are a natural solution.

Serving the part-time employee niche in voluntary benefits will take many specific tools and a very specific approach. Three areas deserve attention for success in serving employers and employees in this space. 

1. Enrollment—Enrolling part-time employees presents unique challenges. Effective communication, online enrollment and call center support are must-haves, but the larger challenge for brokers is the cost involved in providing the enrollment services. I have heard of agents giving up 60 percent to 80 percent of fees on a case just for enrollment services. And if you can't get the employees to enroll, then it won't be a profitable client for you. In a time when revenue streams are being compressed and brokers have incentive to maintain and create revenue, it becomes paramount that brokers enroll cases in the most cost-effective yet successful way possible. The right blend of brand and enrollment costs will be an important factor. Enrollment costs have not traditionally had a spot on those big spreadsheets so brokers will need to be wise.
2. Implementation—Brokers should expect to find a third party administrative firm that can handle multiple relationships within a client. HR, IT, and payroll departments can all have different requirements and different expectations. It's often imperative to match the client's file feed, payroll cycles and communication needs. Flexibility is paramount and experience can go a long way. Implementation is a conversation, not a checklist. By thoroughly and completely handling implementation in the six months prior to enrollment, you will gain a long-term client.
3. Processing—Finally, brokers need a partner with excellent premium processing. Clients have multiple payroll cycles and a highly variable workforce. Eligibility for benefits depends on expert processing and eligibility management. Self-reporting premium electronically is the standard and is easiest for employers— provided implementation has been successful. The third party administrator should also have a proven missed premium process. This process will capture premium directly from participants when they have missed a payroll cycle or do not have a paycheck large enough to accommodate the deduction necessary (very common in restaurants). Ask questions about this process. The most innovative missed premium processes are online and easy for participants to set up and manage. 

Serving part-time workers can be a complicated market but there is a fundamental shift occurring in the way that people purchase benefits. There's a tremendous amount of misinformation and employers are looking for straight answers. Align with people who know the niche of your clientele. It's hard to see the positive attributes of cockroaches, but if you're a “Walking Dead” fan, you will notice that the cockroaches are left alone. Brokers have avenues in which to prosper in this new world. Although hard to see, opportunities exist to set yourself apart and not just survive, but thrive.