My 15-year-old son loves a TV show called “The Walking Dead.”Essentially life has changed dramatically for a group of people andthey must defend themselves against a zombie apocalypse. Some mightequate this to normal people trying to sift through and understandmountains of government regulations. Whether it's vampires, witchesor Mayan calendars, we love apocalyptic entertainment and it'spartly because the theme is consistent: Rise up to the challenge,be smart, work hard, and do what it takes to survive. Adapt.Cockroaches get high marks for their ability to find crevices andwithstand persecution. For those of you closer to the coasts, thesebugs are known to fly at you causing panic and fear in a ruse toget away.  While not typically a creature warranting noblecomparison, I couldn't think of a better creature that exemplifiessurviving. 

The Patient Protection and Affordable Care Act is changing thegame for employee benefit professionals. The benefits industry hasalready faced many challenges and there's no doubt there will bemore. Adaptation is critical and figuring out new ways to generaterevenue and unique places to prospect will benefit yougreatly. 

Where do you find opportunity? The confluence of PPACA, the highcost of medical insurance (we still haven't done much to addresscost) and U.S. employers limiting the hiring of full-time employeesis creating an ocean of part-time employees. While employers workto manage cost, many individuals will be pushed to exchanges tomake the decision on whether or not they comply with PPACA asindividuals. Are part-time employees a way for you to generateand/or replace revenues? If so, what strategy can you employ toserve these employers/employees?

First let's take a look at what is contributing to the rise inpopulation of the part-time worker. The government recentlyprovided the definition of a full-time employee, which set wheelsin motion for employers in the restaurant, staffing, retail, hoteland all of the other service industries where part-time employeesare prevalent. There have been several high profile news storiesabout well-known restaurant chains suggesting they may cease hiringfull-time hourly workers and begin transitioning to more part-timeemployees. The ensuing media and employee backlash against thoseemployers pushed them to amend their position, but there werehundreds of other employers that avoided the limelight whileimplementing the same policy. Employers know they can't afford thecost of major medical coverage at the current margins.

PPACA, which mandated additional health coverage benefits whilenot addressing cost containment provisions (such as providercompetition and transparency), will inevitably lead to uncontrolledcosts. Therefore, many employers with low-skilled employees willdiscontinue offering insurance. While the penalty will impact someemployers, many will find it advantageous to manage their employeesto fewer than 30 hours per week, exempting them from thepenalty. 

In the exchanges, consumers are going to be shocked by both thecost and type of benefits. Even if a person qualifies for asubsidy, they will still have a personal responsibility to pay somelevel of premium for a medical plan option inside a state exchange.For instance an individual making $29,000 a year would be requiredto pay $2,315 of their annual health insurance premium. Run yourown numbers at the Kaiser Foundation website, www.kff.org. Theindividual mandate penalty for this person would be $193 for theyear. What do you think will happen? And the benefits consumers aremost interested in—care for things like a broken leg—are going tobe subject to costly deductibles and coinsurance levels.Conceivably, there will be several thousand dollars of out ofpocket expenses for this person.

So what happens to the part-time employee? They have full-timelives and full-time pressures to provide for themselves and/ortheir families. In many instances, employees look to their employerfor answers and that will still be the case going forward.Employers will still maintain an incentive to be perceived byemployees as providing enhanced benefits relative to otheremployers. Competition to recruit and keep the best part-timeemployees will increase. 

The most powerful tools for attracting and retaining workers arebenefit plans that present an easily identifiable value. Even ifvoluntary, employees appreciate the knowledge of an HR department,the ease and pre-tax benefits of payroll deduction, and theeducation that comes with a common benefit structure among a largenumber of co-workers. Employers have buying power which createsaffordability and better benefits for employees. Employees win whenthey can buy benefits through their employer. Employers win byproviding something that employees cannot get as individuals. Thisis what is compelling many carriers and brokers to focus on thevoluntary benefits market. The benefits that employees value andwant to purchase such as dental, vision, life, disability, hospitalindemnity, accident, and outpatient indemnity are a naturalsolution.

Serving the part-time employee niche in voluntary benefits willtake many specific tools and a very specific approach. Three areasdeserve attention for success in serving employers and employees inthis space. 

1. Enrollment—Enrolling part-time employeespresents unique challenges. Effective communication, onlineenrollment and call center support are must-haves, but the largerchallenge for brokers is the cost involved in providing theenrollment services. I have heard of agents giving up 60 percent to80 percent of fees on a case just for enrollment services. And ifyou can't get the employees to enroll, then it won't be aprofitable client for you. In a time when revenue streams are beingcompressed and brokers have incentive to maintain and createrevenue, it becomes paramount that brokers enroll cases in the mostcost-effective yet successful way possible. The right blend ofbrand and enrollment costs will be an important factor. Enrollmentcosts have not traditionally had a spot on those big spreadsheetsso brokers will need to be wise.
2. Implementation—Brokers should expect to find athird party administrative firm that can handle multiplerelationships within a client. HR, IT, and payroll departments canall have different requirements and different expectations. It'soften imperative to match the client's file feed, payroll cyclesand communication needs. Flexibility is paramount and experiencecan go a long way. Implementation is a conversation, not achecklist. By thoroughly and completely handling implementation inthe six months prior to enrollment, you will gain a long-termclient.
3. Processing—Finally, brokers need a partnerwith excellent premium processing. Clients have multiple payrollcycles and a highly variable workforce. Eligibility for benefitsdepends on expert processing and eligibility management.Self-reporting premium electronically is the standard and iseasiest for employers— provided implementation has been successful.The third party administrator should also have a proven missedpremium process. This process will capture premium directly fromparticipants when they have missed a payroll cycle or do not have apaycheck large enough to accommodate the deduction necessary (verycommon in restaurants). Ask questions about this process. The mostinnovative missed premium processes are online and easy forparticipants to set up and manage. 

Serving part-time workers can be a complicated market but thereis a fundamental shift occurring in the way that people purchasebenefits. There's a tremendous amount of misinformation andemployers are looking for straight answers. Align with people whoknow the niche of your clientele. It's hard to see the positiveattributes of cockroaches, but if you're a “Walking Dead” fan, youwill notice that the cockroaches are left alone. Brokers haveavenues in which to prosper in this new world. Although hard tosee, opportunities exist to set yourself apart and not justsurvive, but thrive.