Insurance & Benefits Related Articles & News

Submitted by Vesta Worksite

WEDNESDAY, NOVEMBER 11, 2009

From Where has the Worksite Marketplace Come and Where is it Heading?
The concept of worksite/voluntary benefits has evolved throughout the years. When we, Vesta, became involved in the market over 20 years ago, there were very few carriers offering a limited number of plans. The designation of this limited "niche market" was "payroll deducted" plans. Traditional Employee Benefit Specialists wanted nothing to do with these "step child" plans and sales were generally made by the carriers' field force. The field force would go directly to the employer. Enrollment was performed by the carriers' field force on a paper application and generally separate from the "core benefit" enrollment.

Since then, the designation of "payroll deducted" benefits evolved into "supplemental", "voluntary", and now, "worksite". There are now hundreds of participating carriers and a wide range of plans. Traditional brokers have begun the process of embracing the plans with the assistance of the carriers and their respective field forces. Working together, there is a greater understanding of offering employees choice and the necessity of offering meaningful education, communication, and enrollment processes. Technology choices have made the overall employee enrollment process more efficient and the worksite plans are being integrated and enrolled simultaneously with the core benefits.

In recent years, the differentiations between core benefits and worksite plans have faded. The employers, working with their Employee Benefit Specialists are offering employees more choices in their core benefit designs. Employees may have several choices for health, dental, vision, life, and other plans. The worksite plans are often utilized to fill in the "gaps and holes" in coverage that occur when the employers and/or the employees select plans with more limited coverage and a reduced premium. These menu choices include: Gap, Limited Benefit, Mid-Meds, Critical Illness, Disability, and Life plans. The core benefit carriers are often designing and integrating plans with the worksite carriers.

Where are you in integrating worksite menus into your core benefit design? How can Vesta help you put the ever-expanding Worksite Puzzle together? Whether you are a Carrier, GA, Agent for a Worksite Carrier, Employee Benefit Specialist, Broker, Employer or Employee, the number of players and choices can be confusing. Please share your thoughts and experience!