Benefits professionals have been on a roller-coaster ride since the 2016 presidential election. That ride includes the highs of lofty rhetoric, the lows of as-yet unfulfilled promises, and uncertainty about what may lie around the next curve.
Every now and then, it helps to step off the ride, catch your breath and collect your thoughts. That's why BenefitsPRO takes time each year to ask employers to share their insights on the most important issues they face. Their responses provide a valuable roadmap for brokers as they plan ahead for this fall's abbreviated open enrollment period.
Not surprisingly, the economy is top of mind for the 125 decision-makers who participated this year (see box on pg.18). Overall, employers give the Trump administration low marks for its economic policies. Thirty-seven percent said these policies have had a moderately or extremely negative effect on their business outlook, with 20 percent reporting a moderately or extremely positive impact.
Perhaps the most important takeaway message for brokers is that most employers adjust their benefits spending to economic conditions. Sixty-four percent said their benefits spending is influenced by the economy.
Coping with costs
The rising cost of health care benefits tops the list of concerns, with most citing increased expenses over the previous year:
However, there is good news for brokers among the economic concerns. The overwhelming majority of employers (85 percent) use a benefits broker or agent. Compensation is divided somewhat evenly between commission-based (54 percent) and fee-based (46 percent). Seventy percent of employers said their broker either conducts enrollment or helps them conduct it.
The even better news is that more than 91 percent of respondents have no thoughts of dropping their broker and going it alone. Still, it would be smart to pay attention to the factors that they say would cause them to consider such a bold move:
Communication is critical
Timely, actionable communication is more important than ever in today's fast-changing benefits environment. Nine employers in 10 said they are satisfied with the frequency of communication with their broker. How often do they connect?
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