How Insurance Agents Can Diversify Their Business with Ancillary Group Coverage & ICHRA

Agents working with employers, especially those offering health insurance through an Individual Coverage Health Reimbursement Arrangement (ICHRA), should consider adding ancillary group coverage options to the services they provide.

Ancillary coverage can help employees keep costs low while generating additional income opportunities for agents!

Here’s how you can diversify your business and offer standout customer service to your clients.

What Are Group Ancillary Benefits?

Group ancillary benefits are employer-sponsored programs designed to support employees’ health, financial security, and overall well-being. These benefits are typically provided in addition to a major medical insurance plan.

Common group ancillary products include:

• Dental and vision insurance
• Life insurance
• Short- and long-term disability
• Accident and critical illness coverage
• Wellness and mental health programs

Why Group Ancillary Coverage and ICHRA?

We recommend getting started with group ancillary coverage options, especially if you’re working with ICHRA employers.

Employers benefit from ICHRA because offering this support allows them to remain competitive and retain employees. While an ICHRA covers individual medical premiums, depending on the plan the employee selects, benefits can vary. Ancillary coverage such as dental, vision, life insurance, or disability coverage can round out the individual medical plan.

Having an ancillary group benefits package also allows employees to maintain the typical, employer-offered group insurance structure. This arrangement is still flexible and empowers employees to make their own health decisions.

And a highlight for agents working with these employers: When ancillary products are packaged with an ICHRA platform, these benefits are a simple, streamlined experience.

Contract with Group Ancillary Carriers

Get contracted with ancillary carriers that offer group coverage to be able to assist ICHRA employees with finding the best supplemental options to complete their coverage.

Advice For Health Insurance Agents Considering Ancillary Sales

Here are our best tips for success when taking on a new product type and business adventure, such as ancillary group sales!

Put Customer Service First

As an agent working with ICHRA customers, an important thing to remember is that your clients are not on any one plan; it’s likely they have coverage from a variety of carriers. This is where excellent customer service is vital to your success.

Ask the clients participating in the ICHRA what plans they are on and discover what coverage is included. It’s likely that your clients could benefit from an ancillary product to create customized, flexible coverage that can be lower cost.

Understand Every Product

Build a strong understanding of the individual medical plans, ancillary products, and voluntary benefits to be able to assist ICHRA employees who come to you for recommendations. Your knowledge could be the best resource they have for staying on budget and making the right coverage decisions for them!

To effectively advise clients, don’t forget about compliance basics. Understand the requirements for agents working in the marketplace, and make regular procedures to safeguard your business from fines and to maintain your reputation as a trusted agent!

Extending your sales opportunities through ICHRA and ancillary group products is a great way to offer excellent customer service to employers and employees, as well as diversify your business!

We’ll have more information and details coming soon with how you can get started selling ancillary group products with an ICHRA partnership.

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