Brokers and EGWP’s
Are Brokers and EGWP’s a Good Fit?
Insurance brokers and EGWP’s are made for each other. Here’s why.
EGWP’s can be complicated but no more so than the regulations that have guided the Retiree Drug Subsidy that employer plan providers have had to deal with. As an insurance broker to plan providers, having a full command of Employer Group Waiver Plans (commonly referred to as Egg Whips) is certainly a smart move. There are more nearly 4,000 employers covering approximately 4,000,000 retirees that have the RDS installed. These public and private employers, unions, associations, government agencies and municipalities have been receiving the government backed prescription drug subsidies for their retirees since 2005. But changes to the tax code and expense changes in the Patient Protection and Affordable Care Act have made RDS payments a less attractive option.
Help Plan Providers Understand EGWP’s
As an insurance broker, an EGWP plan can help your clients save money and preserve a benefit that their retirees need in today’s contracted economy. While many companies are reducing their retiree benefits by removing the benefit or reducing coverage, and EGWP can help your insurance clients reduce costs and increase goodwill with their retirees. Some experts have estimated that plan providers can actually realize a savings of 20% or more by switching from their present RDS to an EGWP. As a broker toy can benefit as well.
Our system allows you to gain a lucrative commission by working with our representatives to effect an EGWP for your clients. If you have a client base that has retirees presently receiving the RDS as part of their medicare eligible retiree prescription drug benefit plan, you may find that presenting them with an EGWP can significantly cut their administrative costs (by as much as 90%) and increase the amount of benefit they receive. In addition to a standard EGWP, their are also “rap” plans that provides retiree drug prescription coverage for brand name drugs while the retiree is in the donut hole. In addition, an EGWP+wrap plan can also provide catastrophic coverage that was not an option under the RDS plan.
Commissions for Brokers and EGWP’s
Brokers and EGWP’s go together well. But time is limited. The window of opportunity to move your clients to this lucrative commission opportunity is closing and with only a limited number of companies who receive the RDS, and more and more switching over. Once they make the switch you can earn even more commission by getting your client involved in an RDS Reopening, which goes back as far as 4 years.
Contact Us for More Brokers and EGWP’s Information
Use the form below to contact one of our EGWP consultant who will give you the expanded information on how insurance brokers can bring this cost saving benefit to their plan provider clients.