Broker brethren give exchange advice

“We’re empowering people. If they begin to finally understand their benefits, they are going to change how they use their benefits. I know that happened to me.”

And that increased awareness will lead to decreased health care costs, and a better return on investment.

As for getting involved in exchanges, they shared advice.

Big brokerage houses, who have opened up their own exchanges — such as Gallagher — are flourishing. But not every brokerage has to open their exchange — and many don’t have the resources to do so, at least yet. Partnering is also a good option, especially for small brokerages and for those that are eager to roll out an option soon, Mengert said.

“It’s a process,” he said, explaining that it took years for his company to partner with Bswift for theirs. He warned that there needs to be a lot of in-house testing, a lot of evaluating and there will be roadblocks to deal with.

And for the brokers who are going with the wait-and-see approach? At the very least, Melson said, “if you don’t have an exchange, explore your options. You have to get to know what it’s about. Get up-to-date on them, read about them, know the options, know what others are doing,” she said. “It’s what I would want if I was in the employer’s seat.”

Overall, brokers who embrace private exchanges will see the benefits for themselves and their business.

In this rocky environment, Mengert said, “brokers are looking for a solution. And having this tool in your box … it gives you the ability to be competitive.”

And the exchanges can make ancillary products, such as dental, critical illness and pet insurance, at the forefront of the purchasing experience for consumers, which will help brokers increase their revenue.

“It’s a lot of work,” Mengert said. “But it’ll make you look like a hero at the end of the day if you can make it work.”