After many weeks of debate in Washington, healthcare reform is a reality! What does that mean to insurance providers? Is it the right thing? Is it a bad thing? Is it a mixed bag? From my perspective, healthcare reform is really a GREAT thing. Healthcare reform focuses on major medical insurance - not life insurance, voluntary benefits, or Medicare Supplements.

Voluntary Benefits and Employers

Voluntary benefit sales should continue to rise and not just for smaller businesses. However, employers are still dropping insurance sponsored coverage for employees at an alarming rate. Many large companies and corporations have experienced steadily rising insurance premiums over the past 10 years as medical costs have grown. As part of healthcare reform, employers with 50 or more workers will face government fines when they don’t provide their employees with insurance coverage. A recent online article noted several major corporations that are considering dropping employer-sponsored health coverage in exchange for paying penalty fees to your government. If the cost of providing employer-sponsored health insurance to their employees is greater than the total amount on the fine, what choice do they have? They eliminate their employer-sponsored coverage, pay the federal government fine, and come out ahead financially. But, where does that leave their employees? Without benefits!

Since many employers feel an ethical, if not just a legal, obligation to offer benefits for their employees, they must consider giving employees the option of voluntary benefits. Worksite may easily become the golden child among the insurance industry.

The Future of Medicare Supplement Sales

I think healthcare reform will very positively affect Medicare Supplement sales for years to come. Beginning in 2011, federal payments to Medicare Advantage plans shall be substantially cut, and cuts will continue in the coming years. That step will cause additional insurers to withdraw out of the Medicare Advantage marketplace. More Seniors will lose their coverage and return to Original Medicare and buy a traditional Medicare Supplement.

Needless to say, Baby Boomers’ retirements will have a profound effect on Medicare Supplement sales for decades. According to the U.S. Census Bureau, by 2030 the 65-plus population will double to about 71.5 million, and by 2050 it's going to grow to 86.7 million. That represents massive numbers of potential Medicare Supplement sales!

Because today’s retirees tend to be more educated than those of previous generations, they have a better understanding of what Medicare does and does not cover. They understand the necessity to plan for their future and the worth a top quality Medicare Supplement could have when they confront health issues. They also have more than adequate disposable income to afford a top quality Medicare Supplement.

Some parts of healthcare reform are not going to go into effect until 2014, and even then, there will be out-of-pocket expenses that traditional major medical plans won't ever cover. Supplemental insurance protection will be crucial for a person’s overall healthcare planning. Cancer and critical illness policies will continue to grow in popularity given the vast quantity of media attention focused on cancer and critical illnesses like heart disease and stroke. With a continued increase in obesity, shown to be a precursor of these kinds of health issues, the value of cancer and critical illness policies will become more obvious with each passing year. Additionally, individuals who may choose not to acquire any kind of basic or extended supplemental health coverage may still be receptive towards a lump-sum cancer or critical illness policy.

What does healthcare reform mean to us? OPPORTUNITY! Ahead looks brilliant - especially for life, worksite, and Medicare Supplement sales. But, we need more talented Agents in place during the coming months to handle the increasing workload. As a result of impending commission changes in the major medical marketplaces as well as in Medicare Advantage, you will have access to a bigger and versed pool of Agents. Make the most of that. Continue recruiting. Continue training. Make the most of the amazing potential around you when it comes to both people and products!