In my last two articles, wecovered two of the larger shifts that will be occurring in theworksite marketplace in the next few years.

  1. The shift from employer-bill to zero-bill:Taking the employer out of the payroll deduction billing processthrough a premium direct deposit or EFT model
  2. The move from a pre-tax to post-tax model:Mostly due to the potential tax liabilities now associated withpre-taxing fixed indemnity VB plans

But doesn't everything come in threes?  The shift to azero-bill, post-tax environment opens the door for the last majorcoming change:  from scheduled benefit plan design tolump-sum design.

Traditionally, when it comes to voluntary benefits, most planshave been a scheduled benefit design model.  These areplans that have upwards of 30 different procedures that couldtrigger a claim payment.  For example, cancer insurancehas claim benefits for diagnosis, radiation/chemotherapy, surgery,hospital stays, ambulance, prosthetic, and the list goeson.  Same with other lines of VB, such as hospital andaccident plans.  These plans, while valuable, arecertainly more difficult for employees to understand and morecomplicated at claim time than their simpler cousin, the lump-sumplan.

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