ESTABLISHED BENEFITS DEPARTMENT READY FOR GROWTH UNDER PPACA    Palomar's acquisition of benefits firm provides new opportunities Group medical benefits drive the employee benefits practice of most independent insurance agencies. Premiums increase annually; revenues grow steadily, making health insurance everyone's favorite insurance product. But in Alabama, agencies struggle to build a traditional employee benefits practice. Blue Cross and Blue Shield of Alabama dominates the marketplace and is a direct writer--inaccessible to independent agencies and brokerages. Despite the challenges, Palomar Insurance Corporation in Montgomery, Alabama, has built a prominent employee benefits practice--focused on ancillary benefits and employee-paid voluntary benefits. And agency executives look forward to growth in employee benefits opportunities as the Patient Protection and Affordable Care Act changes the marketplace next year. President and Chief Executive Officer Tony Craft says the agency has been slowly building its employee benefits practice in response to changing client needs for several years but, thanks to the acquisition of an employee benefits specialty practice last year, is poised for dramatic growth. "The insurance brokerage business has been changing steadily, creating new demand for more comprehensive expertise," he explains. "Ten years ago, we were all from the property/casualty insurance side of the business, but today we realize that we have to understand and service all areas of our field, including employee benefits." Click here for the complete article …

NEW DIMENSIONS IN WELLNESS    Employers want more bang for their buck, eye new approaches It's a well-known fact that fit, healthy employees are more productive, have fewer health-related absences from work, and are less likely to experience the kinds of lifestyle-related conditions that are a major contributor to increased group health insurance costs: obesity, heart disease, Type 2 diabetes. For all of these reasons, employer-sponsored wellness initiatives have become a key component of corporate strategies to promote employee health and control insurance costs. Despite the proliferation of wellness programs, health management techniques and incentives, however, health care costs continue to increase. The health and wellness environment is changing rapidly, and employers are demanding more from their investment in wellness and health management. As a result, many employers are starting to rethink their wellness plan designs. Some employers are building in more rewards, incentives and support to encourage enthusiastic participants. Others are shifting their investments to provide lower premiums for employees who succeed at health and wellness goals-and penalties for those who don't. According to the 2012 Aon Hewitt Health Care Survey, employers will continue to provide health care benefits, even though the Patient Protection and Affordable Care Act will allow employers to back out of their benefits plans. But they are likely to change the risk and reward design. Click here for the complete article …