LONG-TERM CARE-A CLEAR NEED, BUT HOW TO DELIVER IT?    Multi-life policies supplant true group; the coverage need that won't go away Employee benefits plans are made up mostly of products that protect employees from financial risks involving their health and their retirement. Ironically, long-term care insurance-which provides significant security on both of these fronts-has had limited penetration in the employer market. The success that the product has enjoyed has been mostly in the individual market, although there, too, a strong case can be made that current sales have barely scratched the surface of meeting existing needs. Jesse Slome, executive director of the American Association of Long Term Care Insurance, says that the long-term care market has changed dramatically in the last five years and that more change is on the way. "The past really is irrelevant," says Slome. "There are people who wish this was 2007, but it's not. It's a very different world, a different economy and a different long-term care insurance industry and marketplace. What's important is what's happening today, and what is likely to happen in the future." Slome says record low interest rates have been a major change agent, pressuring long-term care insurers to increase premiums and reserves. Also, most insurers that were selling true group business have left the market; only Genworth continues to sell true group long-term care. "As the sole remaining player, Genworth gets to be highly selective as to the clients they'll serve and who they'll accept," Slome notes. Other companies still offer long-term care through benefit plans, but Slome explains that they have done so by "shifting to 'multi-life' policies, which are individual policies offering a group discount and some underwriting concessions." Click here for the complete article …

EMPLOYEE BENEFITS 2013:CONSULTING IS KING    A top P&C agency guides clients through health care reform and HR challenges Phoenix and Indianapolis may be more than 1,600 miles apart and even further separated by politics, demographics and economics-but they share similar employee benefits challenges. To address those challenges, one independent employee benefits agency and advisor, MJ Insurance, Inc., serves both cities. Anxiety over the final implementation of the Patient Protection and Affordable Care Act, concern over rising health care costs, and the need to comply with a growing body of state and federal regulations are universal concerns, say executives of MJ Insurance, the largest locally owned, privately held agency in Indiana, with offices in both Indianapolis and Phoenix. (MJ Insurance was honored as the Rough Notes Agency of the Year for 2009.) Rather than struggling to mount effective responses using traditional insurance programs and limited carrier resources, MJ Insurance is tackling the challenges by taking a consultative and analytical approach and by providing independent health resources, says Chief Executive Officer Michael H. Bill. The agency emphasizes expertise rather than price and market access, he explains, and it has developed an approach to both employee benefits and property/casualty insurance that is built on a systematic, analytical review of employer history, culture and business goals. The techniques cut across regional differences and generate employer-specific solutions-regardless of local cultures. Click here for the complete article …

INNOVATION OPPORTUNITY    Employee benefits advisors can use new transparency laws to differentiate themselves and document their expertise in the field Nothing makes independent agents and brokers bristle more than new government regulations, but sometimes regulation can create opportunity for innovation, says investment and retirement industry gadfly Chuck Epstein. New Department of Labor regulations that call for disclosure of expenses and fees paid to investment fund managers in charge of defined contribution retirement plans create an unprecedented opportunity for agents, brokers and consultants who provide employee benefits guidance to employers, he says. "For the first time in 40 years-since the launch of the first 401(k) retirement plan-plan participants can find out exactly what their retirement investments cost and who makes money off their retirement plans," Epstein explains. "The new watchword for the investment industry is 'transparency' and the latest government regulations provide the legal tools to create a window into the inner workings of investment funds." The new rules-DOL 408(b)(2) and 404(a)(5)-went into effect in July and have begun a process of disclosure that will eventually allow employers who sponsor retirement plans and individual plan participants to begin to compare the fees and expenses that have been charged to their plans by the investment industry for plan ??administration. These 12b-1 fees and the revenue sharing they allow benefit only the investment managers and marketers. Epstein says 401(k) plan participants pay an average of $164 million daily to investment companies for management fees and expenses. "For decades, 401(k) service providers and some employers have allowed their employees and customers to be overcharged for services they did not receive. These practices would be forbidden in other corporate departments, yet they occurred in some 401(k) plans." Click here for the complete article … LET'S FACE OUR FEARS AND CHANGE OUR MODEL    Master your fears and make them work for you Yes, this is a scary time in our industry, but let's face it: Fear is just a natural part of doing business. Whether you're building a business or a book of business, there's nothing easy about it. There are always threats; and if we let our fears get in the way, we'll never achieve anything. Fear itself shouldn't automatically be seen as negative. A healthy level of fear can keep you sharp and focused and may actually help ensure your survival. To paraphrase the old saying, courage isn't the absence of fear; it's willingness to face the fear. Fear is a problem when it becomes irrational or comes from a source over which we have no control. In working with producers and agencies, recently I have seen more fear in eyes and heard more fear in voices than at any time in the past. Understandably, many of you are saying: "Of course we're scared! Do you have any idea what health care reform is going to do to our business?" Let me ask a question in return: Just exactly what business are you in? Before you answer that question, consider the message in an article I read recently in Inc.magazine. Back in 2000, the author was the CEO of a startup entertainment company. As part of a promotional activity, he found himself standing in the Times Square location of a national record store chain with the owners of the chain. He asked the owners why they thought so many people came into their store. The CEO of the record store chain replied to what he obviously thought was a ridiculous question: "Well, to buy CDs." Click here for the complete article …  Click here to unsubscribe This message was sent by The Rough Notes Company, Inc., 11690 Technology Drive, Carmel, Indiana, 46032 1-800-428-4384