While many might consider benefits enrollment and administration technology to be a mature market, the forecast for expansion is based on the need to meet ongoing and near-term challenges. According to IDC, spending for the U.S. employee benefits outsourcing services market in 2010 grew 3.9 percent over 2009 and spending in this market segment is forecasted to reach $10.3 billion in 2014.

Moreover, the Patient Protection and Affordable Care Act (PPACA) includes a host of new requirements regarding benefits communication—from summary plan descriptions to opt-out forms for automatic enrollment. According to a Mercer survey that asked about the impact of meeting the [PPACA] requirements for 2011—specifically, extending dependent eligibility to age 26 and removing annual and lifetime benefit maximums—employers estimated that making the changes would add 2.3%, on average, to their 2011 cost.

Strategically, employees also will need more information as consumers to select appropriate coverage and understand the full value of employer-provided benefits, as well as information that focuses on wellness and prevention that can help reduce premium and employer costs. Federal grants—$200 million for fiscal years 2011-2015—are available to small businesses to enable them to provide employees access to comprehensive workplace wellness programs.

These three challenges provide brokers with almost unprecedented opportunities. Let us count the ways.  An Evolving Role

Brokers will be relied on by their clients to provide more value above and beyond conducting plan comparisons and issuing recommendations. Providing this added value is critical given the increasing complexity of benefit offerings, the need to constrain runaway costs, and, not least, the requirements and mandates of health care reform.

From a business perspective, adding value is crucial as brokers also face a negative impact from having commissions cut under the administrative cap of the medical loss ratio (MLR) provision.

The key is to offer solutions that will solve clients' pressing needs and challenges by being proactive and becoming an invaluable "partner" to HR as they work through their benefits-oriented decision-making.

To that end, brokers need to:

1. Shop around for creative solutions that will serve your needs, as well as that of your client. You should be secure in knowing that the solutions you use and recommend will perform flawlessly and seamlessly. This means recognizing that not all online benefits enrollment solutions are created equal—especially when it comes to an integrated platform that needs to handle multiple benefits from different carriers.

When multiple vendors are involved, it's critical that the solution be able to interface on an IT level as well as be compliant with legal requirements, such as HIPAA and administrative compliance under PPACA. For example, a key feature that is essential in today's environment is a fully automated EDI data exchange, which provides connectivity among employer groups, insurance carriers, third-party administrators, payroll vendors, and brokers—ensuring a seamless, transparent, accurate, and secure process.

2. Be the expert your client needs. You can glean insights from customer data to communicate more effectively with your clients and address their needs in a more proactive manner, improving your ability to retain those clients. For example, utilization data can pinpoint areas of high cost or underutilization of benefits. You can also provide updates and guidance on key compliance issues and assure clients that their benefits enrollment solution is keeping pace—even ahead of the curve—regarding regulatory changes. 

3. Use social media. Sales and service are two key business processes that can benefit from social media. Social media can help you better manage client and prospect communication, monitor the issues being discussed, and foster the development of online client communities. In addition, social media—including video, podcasts, reviews and audio files—can be used to reach and engage users and leverage a "community-based" approach in promoting more proactive and informed benefits "consumers." It can also provide an effective thought leadership approach to marketing compared with traditional approaches, which can further differentiate you from the competition.

Join the Employee Communications Conversation and Solution

Benefits automation not only the reduces the bottom line costs associated with benefits administration, the actual savings in real dollars can be allocated to other areas that can benefit clients and even multiply the ROI—such as prevention programs.

However, such programs are not valuable unless employees use them, and they are not used unless they are publicized, putting benefits communication front and center. From the client's perspective, investing the savings garnered from automating printed benefits communications in online tools and prevention programs that help employees make better health care decisions. Increased use of wellness programs results in a more productive workforce that, in turn, directly affects the company's bottom line in terms of lower absenteeism, fewer lost workdays, and lower medical claims.

With respect to education, clients can invest in communications that illustrate the full value of the total benefits being provided to each individual employee and assist them in comparing offerings so they can make sound selections.  

Keep in mind that more and more people are also turning to the Internet for health information. According to a Manhattan Research study, 89 million U.S. adults tapped social media resources for health-related purposes in 2010. However, much of the health-related information available online is not checked for accuracy.

Providing educational and informational communications may be especially important since, next to job security, benefits are of utmost concern to employees. And, for employers, being able to offer validated benefits information can go a long way to engaging employees and, in turn, making them better benefit consumers.

Leveraging Technology

Brokers are ideally positioned not only to provide trusted advice on benefit offerings, but also to assist clients with the selection, implementation, and ongoing support of a best-of-breed integrated benefits administration solution that can help them battle health care costs.

While there's no shortage of solutions in the market, a next-generation benefits administration platform can offer much more than just online enrollment. Benefits automation can also improve the employee experience. However, it goes beyond the expectation that the process should be accessible and easy. When it comes to benefits enrollment, the key for employees is information—and more of it.

A flexible system also allows you to efficiently manage multiple clients centrally, streamlining benefits delivery while offering each client "customized" service—maintaining and building your book of business efficiently and cost-effectively.

According to a recent Benefits Selling survey, employers are increasingly relying on brokers to fill the void created by their own smaller HR staffs as well as that of their carriers. Wherever possible, the survey noted, consultancies and brokerage firms are looking to leverage investments in technology to bridge this service gap.

An increasing number of employers are also turning away from one-time online enrollment solutions and looking for a "leave-behind system" for benefits administration. One advantage of this type of system is that rather than only having access during open enrollment, brokers, employers, and employees can access it 365/24/7.

Leave-behind systems also offer increased HR functionality, including immediate and ongoing access to employee handbooks, carrier sites, claims information, and benefits schedules. Leave-behind systems integrate fully with other functionalities that handle core medical, dental, and vision benefits, voluntary products, and flex benefits (i.e., HSAs), as well as TPA services, and seamlessly work with existing HRIS, Payroll, or COBRA administrators. Reshape Your Role and Future

You can now bring more to your client relationships and the conversation by offering your services as a business partner and provider of best-of-breed solutions that address management's top concerns while concurrently improving internal efficiencies. More than ever, you are an essential component of the benefits landscape and an ally in your clients' challenge to retain a healthy bottom line and workforce. All the stars are aligned for brokers to seize an unprecedented opportunity to reshape their role and their future.