Benefits Brokers Brace for Major Changes to Health Care

A new survey conducted by Oliver Wyman reveals that 80 percent of U.S. benefits brokers are considering significant changes in their service offering as a result of the weak economy and a changing presidential administration. In-depth interviews with brokers show consolidation among brokerage firms is poised to become a trend in the near future. Oliver Wyman's 2008 Buying Trends Survey of more than 700 brokers reveals uneasiness about potential seismic changes to the healthcare system driven by economic pressures and legislative efforts. In the long term, it is believed a fundamental redefinition of broker business models is on the way.

According to the survey, 79 percent of brokers said employers and insurance carriers should emphasize wellness and health management in their health plans, however 80 percent of brokers surveyed also believe that plan administration remains an important service. The survey also found that brokers need to reorient their offerings to address the needs of two distinct employer segments: "benefit abdicators"–those who simply give their employees money to purchase benefits rather than offer them internally, and "innovators"–those who take personal responsibility to help their workers manage their health.