On March 12, 2012, the U.S. Department of Health and Human Services (HHS) released its final rule on the state-based exchanges that are scheduled to launch on January 1, 2014.
In this final rule, the Obama administration allows greater flexibility to states in their state exchange implementation & foresees increased participation of brokers & agents in the state exchanges. Health insurance brokers & agents are likely to actively participate and assist individuals and employers in purchasing health insurance through the state-based exchanges.
Health exchanges or the web-based marketplaces for purchasing insurance may serve as emissaries for insuring the nearly 50 million uninsured Americans. Insurance buyers would be able to search for various health plans, compare plans and enroll in a plan of their choice through online payment facility. Employers would be able to - define DCHPs, create customized or common health benefit portfolios, purchase insurance for employees – through these web based portals. Most exchange consumers may have little or no information on the benefit plans that best fit their health profile. Brokers and agents may prove to be of valuable service in helping these little informed consumers purchase the best fit plans.
While exchanges are likely to serve as a catalyst in helping uninsured Americans get insured; for a strong sustainability model, these exchanges would need to pull in insured Americans too for purchasing insurance through the exchange. There is a likelihood that small employers not eligible for any tax credits or subsidies, may turn to options outside the exchange for purchasing insurance. Broker and agents may help increase exchange enrollments as they enjoy strong relationships with small businesses or individuals and may be helpful in informing these prospects on the benefits of purchasing insurance through an exchange. Insurance brokers and agents may thus serve as information distribution channels for public exchanges.
States and insurers looking for an automated IT solution for setting up exchanges, stand to benefit from selecting a web solution that offers a dedicated portal for insurance agents & brokers. Brokers and agents interact with multiple clients in a single day and insurance broker software may prove to be an ideal companion for brokers. Through insurance agent software, brokers & agents would be able to update client data in real-time from client’s location thus ensuring no loss in critical information. Insurance broker software thus needs to serve as a customer-relationship management (CRM) tool.
The insurance broker software is designed to help brokers search for plans, compare plans and enroll online into health plans on behalf of their clients. A dedicated insurance agent software application can help brokers and agents in tracking their pending commissions, sub-broker’s activities and statuses of submitted applications. Some insurance broker portals also offer features such as setting reminders & alerts for upcoming deadlines for plan enrollments/cancellations or renewals.
A well-designed and intuitive broker portal not only helps brokers and agents manage data efficiently but also aids in delivering best service to their clients. With brokers & agents likely to play important role in exchanges – both private and public – states & insurers may find it beneficial to select insurance broker software that also caters to the administrative needs of agents & brokers.
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