Brokers as catalysts for DEI

The past year has changed the way we live, work, connect and view the world. We’ve witnessed a global health crisis that disproportionately impacted people of color and of lower income, gone through a period of unprecedented isolation and been confronted with social and racial injustices that continue to underlie U.S. systems and structures.

Related: Creating a more equitable workplace: Don’t forget your health plan

As advisors serving millions of Americans, brokers can step into this void, act as catalysts for change, and promote health, pay, wealth and workplace equity.

Brokers’ unique role

Brokers serve as the bridge to health and wellness benefits for more than half of Americans. They already foster equity by connecting people to benefits that support their health and well-being; providing tools that empower people to make the most of those benefits; and support employers along the way. Access, education and support are central to promoting health equity and matter more than ever, given the pandemic’s impact on our health and financial security.

Brokers have an opportunity to take their role even further by applying an equity lens to four spheres of influence:

1. Health equity: By ensuring everyone has an equal opportunity to choose and use their benefits, brokers can be invaluable allies in health equity work.

2. Pay equity: Helping ensure that all employees receive the best value for their health care dollar is one way to promote equitable compensation.

3. Wealth equity: People overpay for health insurance by an average of over $1,000 a year. Troublingly, lower-wage earners are more likely to overpay, making it more difficult to accumulate wealth, invest and save.

4. Workplace equity: Helping employers promote equitable benefits can lead to a more inclusive workplace, which will attract a more diverse pool of workers and engender a more productive and innovative workforce.

Benefit design and education

Assess health benefits design: Traditional designs often follow a one-size-fits-all model that discounts individual needs and reinforces disparities.

Brokers can identify unseen barriers that make it difficult for people to choose an optimal health plan and then offer strategies that address those barriers through plan design changes and education.

Plan design adjustments: Brokers and employers can test and identify adjustments that give equal opportunities to choose optimal health plans.

For example:

1. Income-tiered premiums. Premium and out-of-pocket contributions fall more heavily on lower-wage earners, whose health care costs are a larger percentage of their annual income. By tiering premium contributions by pay, employers can help employees have a more similar cost burden as a percentage of income.

2. Income-tiered HSA contributions. Aversion to high deductibles causes lower-wage earners to avoid HDHPs, even when they’re the right fit. As a result, they pay more in the long run. Income-tiered HSA contributions provide safety nets that offset risk.

Education and support: Brokers can apply an equity lens to employers’ education efforts by:

1. Ensuring info is available in different formats and languages;

2. Offering multiple different meeting times for different schedules; and

3. Introducing tools that provide personalized guidance and education.

Brokers have an opportunity to revolutionize how employers approach their benefits. Join us for our presentation, where we will share additional strategies for supporting your clients’ DEI goals.

Register now for the BenefitsPRO Broker Expo.

Read more: 

• DEI and racial equity after 2020: A year of change opens new opportunities
• DEI, social determinants of health, becoming bigger priorities in benefit programs
• How deductibles contribute to health care inequity and discrimination