PRODUCT DIFFERENTIATION CRITICAL IN VOLUNTARY MARKET    American General Life fine-tunes its lineup and packaging It's been close to a year since the enactment of the Patient Protection and Affordable Care Act, but with early 2011 health insurance renewals comes a new sense of urgency, or angst, concerning the law. Barring any successful legal challenge or legislative do-over by the newly configured Congress, it's too late to turn back now. While the law will have a sizeable impact on employer-provided health coverage by dramatically expanding eligibility, it also will bring indirect change to the voluntary market, with its array of ancillary health and supplemental medical coverages. That's the view of Steve Howard, vice president of marketing for American General Life's Benefit Solutions. "The business has shifted toward voluntary anyway over the years, but we just think health care reform will accelerate it," he says. "Under the new law, the health carriers, depending on their market segment, are required to have an 80% to 85% loss ratio on their products. How are they going to continue to see the same returns while maintaining that loss ratio? There's only so much they can do to reduce administrative costs. So, they will be looking toward reducing producer commissions. Many brokers have historically relied on group medical premiums to fund their operations. If that is now in jeopardy, they'll be forced to start focusing on voluntary coverages." Howard thinks that some brokers will have difficulty making this transition. "They are used to a commodity, price-oriented business, with fairly low product differentiation." With voluntary business there's a need for "robust enrollment capabilities and a complete understanding of how those voluntary products match and fit with their core health programs." Click here for the complete article …

WELLNESS GOING WELL IN A MID-SIZED MARKET    Historic agency builds a thriving benefits practice anchored by wellness Don't waste time searching the hallways for a little "wellness" cubicle in the office of Ollis & Company Risk and Benefit Advisers in Springfield, Missouri. A commitment to wellness and healthful lifestyles pervades the entire agency, and nearly all employees are advocates of practical ways to reduce cost and improve productivity. And most also are participants in the firm's own award-winning wellness activities, based in the agency's new Ollis Center office expansion. Wellness and health management services are an important component of the agency's employee benefits and risk management services, explains Richard Ollis, president and chief executive officer. Steadily rising health care costs have raised new levels of awareness among employers as they search for ways to reduce, or at least contain, their costs. Health care reform has made the problems increasingly complex, he says, but he is confident that the agency will find a way to provide services that have not been legislated. These services include wellness and health management programs. "If we can reduce risk and help our clients hold down costs, despite all of the anticipated changes that are coming as part of health reform, there will be a place for us in the marketplace," he says. One of the most important risk reduction tools the agency can provide, he says, is wellness education and health management programs that address the underlying costs of care. Ollis & Co. was founded in 1885 by brothers R.A., Alfred, and Charles Ollis to provide insurance coverage for families, businesses, and farms in the Springfield area. In 1974, the agency became employee-owned but retained family leadership in the executive office. Click here for the complete article …