Are you struggling to find the perfect group health insurance solutions for your business?
In this post, we will look at what an Agent of Record is and how it can benefit your entire team if you use one.
From reduced costs to better benefits explanations, you’ll like what an AOR can do for you. This post explores the concept of an Agent of Record and how they can streamline benefits administration for your Houston business.
Learn how a dedicated Agent of Record saves you time and ensures your employees receive the support they need.
The Burden of Benefits Administration for Houston Businesses
Healthcare costs are rising in the United States, even in states like Texas. This increasing cost pressures employers to find cost-effective group health insurance options.
Other aspects of group health insurance are changing, too.
Take the way plans themselves are changing. According to a survey conducted by Mercer.com, benefit costs like health insurance were expected to rise in 2024, and they have. Medical inflation and higher wages have contributed to the rise in group health insurance premium costs.
Compliance with regulations, including HIPAA and COBRA, also adds to the burden of HR teams, which often put together group health insurance plans.
Many small businesses don’t understand or realize the time involved in plan research, employee communication, and ongoing plan management. Not only that but if a mistake in planning is made, the costs could be devastating to a small business.
That’s why having an Agent of Record is critical to small business owners and employers with 50-100 employees. According to the Kaiser Family Foundation and their Employer Health Benefits Annual Survey, employees offering health insurance reported an average annual premium of $22,221 per employee in 2023. This highlights the importance of having an expert on your side to navigate the complexities of group health insurance.
The Changing Landscape of Houston Group Health Insurance
The following information is based on data from Cigna in their 2024 research paper.
An Increase in Investment in Plan Design
The healthier your employees are, the healthier your business is. Compensation alone does not create the engagement and sense of belonging derived from a well-designed benefit and wellness program.
Unsurprisingly, employees now expect employers to create a customized benefit plan for the entire team. Also, voluntary benefits, like supplemental health plans, can help mitigate the high costs of group health insurance plans.
Blended Holistic Care
In 2024 and since 2020, holistic care has gone from being a specialized perk to a requirement for employee benefits packages. Employers must now invest in blending digital well-being, such as remote patient monitoring, with in-person care. Leveraging technology that offers a pathway between providers and patients is equally important.
Drug Costs Are A Factor
Prescription drug costs are also on the rise. This year, employers and health plans must address the ever-changing complexities of drug pricing to ensure employees can access the necessary medications. Employers can win their employees over big-time by advocating for the approval of the adoption of biosimilars, using cost-control tools, and crafting the perfect plan design.
Adapting benefits strategies and plans to maximize value is the key to managing costs. However, navigating these variables is difficult, at best. That’s where an Agent of Record can help.
The Role of a Houston Group Health Insurance Agent of Record
An Agent of Record (AOR) specializing in Houston group health insurance is a dedicated partner and advocate for your Houston-based businesses throughout your group health insurance lifecycle.
Here are the key roles of an AOR.
Reduced Costs
The greatest benefit of working with an AOR is reduced costs. You gain access to their expertise in navigating the ever-changing world of group health insurance. AORs can scrutinize your plan and easily identify key areas to save money. This could involve finding plans with lower premiums or negotiating better rates. They can also help you control costs by recommending plan design adjustments and identifying areas where you can utilize cost-saving measures, like wellness programs and generic drug use.
Streamlined Plan Selection
An AOR starts your relationship by understanding your company’s needs and budget. They also leverage their knowledge of the Houston marketplace to identify suitable options for your team and business. They’ll also ensure your plan provides a sufficient number of qualified in-network providers in Houston.
Additionally, an AOR analyzes plan structures and the cost-effectiveness of your plan for your company.
Ongoing Support and Expertise
An AOR should handle administrative tasks associated with the group health insurance plan, freeing up your HR team. They’ll also develop and implement effective communication strategies to ensure your employees understand their plan’s options and benefits. Assistance with claims and issue resolution are all benefits of AOR. They also stay current on the complex healthcare regulations that affect your small business group health insurance plan.
Proactive Plan Management
Ensure that your plan is performing as it should with help from an AOR. They’ll analyze employee utilization data and cost trends to maximize your options. Best of all, they use real data to recommend plan design or network adjustments to optimize cost-effectiveness and employee satisfaction.
Local Knowledge
Working with a local AOR gives you access to expertise in the Houston market and its many healthcare nuances. Tailored recommendations and plans that specifically analyze and address the needs and challenges of Houston businesses.
In general, an AOR specializing in Houston group health insurance acts as an extension of your HR team, providing ongoing support and proactive management to ensure your company stays competitive as you control costs.
Streamlined Plan Selection with Your Houston Group Health Insurance Agent of Record
The greatest benefit of an AOR is the ability to simplify the initial plan selection process. By deeply understanding your needs and budget as an employer, an AOR provides the best options in one location.
Aside from plan navigation, an Agent of Record possesses an in-depth understanding of various plan options, helping you select any additional coverage that may be needed.
They also excel at evaluating network accuracy, ensuring clients are matched with plans that provide a comprehensive network of healthcare providers.
Cost structure proficiency is important in deciphering cost structures, including premiums, deductibles, and co-pays, enabling clients to understand and manage healthcare expenses effectively.
Finally, an AOR is a trusted advisor who empowers individuals to navigate healthcare plans confidently, ensuring they secure optimal coverage while maintaining financial stability.
Suppose you’re serious about getting the most out of your healthcare services. In that case, you must work with a local AOR—one who understands the local Houston market in detail, including network providers and healthcare costs.
Beyond Selection: The Ongoing Value of Your Houston Group Health Insurance Agent of Record
Once you establish a plan, an AOR can provide continuous value throughout the life of your group health insurance plan.
They can do this by:
- Handling plan administration tasks
- Communicating strategies with your team
- Providing claims assistance
- Help with compliance with regulations such as COBRA and HIPAA
- Regularly review your plan and identify areas of improvement
- Utilize data to recommend adjustments to the plan design based on employee patterns
Regarding group health insurance benefits, an AOR is a critical member of your support group. Invest in a good team and watch your employees flourish under a plan designed for them while your budget remains intact.
Maximizing Employee Satisfaction with a Houston Group Health Insurance Agent of Record
A competitive, well-communicated group health insurance plan will work wonders for your employee’s satisfaction and retention levels. Maximize their satisfaction by partnering with a trustworthy Agent of Record like PCI.
We’ve helped companies in Houston for decades, and we’d love to help you improve your employee satisfaction levels.
Contact our team to learn more about how we can improve your group health insurance plans.
