In an effort to understand the implications of ACA and the results it has on employers with regards to plan design, Zywave has undertaken the task of compiling the largest plan database study in the industry. In our third year of analyzing close to 70,000 plans and 50,000 employers of all sizes across the country, some trends have emerged. For the third year, HSA plans have risen, along with other forms of employee cost-shifting, and we’re also seeing the impact of ACA provisions this year. What stands out most to me, though, is that employers are still looking for answers – and still relying on their insurance brokers to guide them on plan design to meet their specific needs.

Give employers the clarity they want

What does this mean to you?  This plan design benchmarking tool is a great platform for creating value with prospects (and retaining clients). Given the headlines on ACA, virtually every employer is evaluating their plan designs. While ACA is creating complexity, an improving economy means an employer needs to be careful to not cut too deep, as we all know how important benefits can be as a recruiting tool. A broker can create tremendous value and become a trusted advisor by having the resources to be able to guide the employer through these difficult choices.

With the Zywave analysis, here are 3 simple questions you can emphasize with prospects:

• How do you determine your plan offerings?
• How do you compare to others in the area or industry?
• Would you be interested in a comprehensive plan analysis?

The newest version of this study allows brokers to simply enter client’s region, group size, industry and plan type, and see how they measure up on a number of key plan design measures. In addition, if you have our plan modeling tool, you can also illustrate the dollar impact of the proposed changes. It literally is everything an employer would need to make wise decisions with regards to their plans. If they do not want to switch brokers, this type of service can command fee-for-service dollars.

Understanding the market

The primary benefit of this tool is as an individual consulting tool with your client, but we don’t underestimate the analysis power of 70,000 health plans. Here are a few highlights I pulled out of this year’s data that you may want to share with clients:

• The number of plans choosing out-of-pocket maximums over $5,000 went from 20% to 32% in 2013. If you consider that the individual out-of-pocket maximum limit mandated by ACA is $6,350, it’s reasonable to think some of these plans saw that limit as a target in 2013.
• Despite the overall trend of increased employee cost-shifting, over 40% of plans provided a 100% coinsurance in 2013. However, if the first assumption about the ACA out-of-pocket max is true, then this makes sense, as plans would likely set their OOP max at $6,350 and then provide 100% coinsurance. This could be signs of what may become a common plan design for 2014 plans and beyond.
• Another trend that caught my eye was the Rx deductible. Deductibles from $0-$9 remained most popular – but went from representing less than half of plans to over 80% of plans. That’s a big jump! However, taking the rise in HSA plans and some ACA provisions (medical and Rx applying to the same deductible) into consideration, this shift makes perfect sense (assuming the increase representing plans choosing a $0 Rx deductible).
• Want more trends? See our press release (or the summary analysis, if you are a Zywave Partner).

With these tools at your disposal, the path to organic growth could not be easier. Spend ten minutes familiarizing yourself with the analysis tool and then use it on your clients. It’s perfect for renewal time or to challenge an incumbent. You will quickly have success stories which will translate well in a prospect setting. Most importantly, it is a lot of fun to be able to help these employers make sound decisions based on information at our fingertips. Often times, that is the start of a prosperous relationship.