Broker fears about the effects of the Patient Protection and Affordable Care Act on their business are subsiding. In fact, the massive health care law is helping them be more strategic about their product mix.
An annual broker survey by Aflac found that brokers are generally much more bullish about PPACA as it takes shape in the marketplace.
"After several years of uncertainty about the effects health care reform would have on their business, brokers' fears of new legislation do not seem to have materialized," Aflac said in a release announcing the study results. "More than half of brokers say they are confident about the future of their firms and the broker industry, while 41 percent agree that health care reform represents an opportunity for their business, up 14 percent from 2014."
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That optimism is in contrast to previous findings from Aflac. In its annual Aflac Workforces Report for Brokers last year, the carrier found that half of brokers were considering leaving the industry, partly due to PPACA.
While implementation of the coverage-for-all legislation still faces major challenges, those in the business of selling insurance are fairly happy with the way it's playing out.
Several highlights of the study that underscore this growing appreciation of PPACA:
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39 percent of brokers reported increases in their client base over the past 12 months;
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36 percent said their companies' sales/revenue grew in the past year;
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54 percent said their companies maintained their sales/revenue over the past 12 months;
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More brokers than ever before are now acting as navigators for insurance products, considering setting up private exchanges for clients and expanding their consulting services.
PPACA is helping shape broker product strategies as well, with 58 percent reporting they plan to increase the amount of voluntary benefits revenue at their firm in the next 12 months, a 9 percent increase over 2014.
"The uptick in confidence [in the market] is noteworthy; it reflects a 12 percent increase over the 2014 [survey] results and a 14 percent increase over the 2013 … survey," Aflac said.
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
