PLANADVISER - Summer 2023 - 34

Viewpoints
Advisers' Huge Opportunity
... but very few may be aware of it
ON DECEMBER 27, 2020, the Consolidated
Appropriations Act of 2021 was signed into
law. This was a massive piece of legislation,
containing thousands of pages of general
government spending, COVID-19 relief,
economic stimulus and about 90 pages that are
sending shock waves through the employersponsored
health insurance industry. Here's
the key point you must be aware of: Employers
are now fiduciaries on the health, vision and dental
benefits they sponsor.
You may be thinking you know nothing
about health benefits and you aren't sure you
want to. Health plans are complicated. There
was a time, however, when you probably
said the same thing about the retirement
industry. But you learned quickly, asked
questions and performed due diligence. If
things didn't make sense, you asked more
questions. The good news is, because you
understand the fiduciary process, you are
way ahead of everyone in the health benefits
industry, even if you don't currently understand
all the acronyms. Think of climbing a
mountain. You are halfway up, while most
don't even know there is a mountain.
Collectively, these rules constitute the
largest set of new compliance obligations
for health plans since the implementation of
the Affordable Care Act, and employers need
help. Without a prudent process in place,
they could be subject to enforcement actions,
monetary penalties and class-action litigation
just like the retirement industry has
seen since the mid-2000s. To reiterate, the
key point is: Employers must establish a fiduciary
process for the management of their
health and welfare benefits plans, just like
they do for their retirement plans.
Your clients will be unable to meet these
new requirements and duties on their own.
They need guidance from valued partners,
and who better to guide them through the
implementation of a fiduciary process than
you, their trusted fiduciary adviser? This is a
huge opportunity.
If you're ready to shoulder the challenge,
here are a few ways to move forward:
* Partner with an expert in the health
benefits market;
* Identify a software program that
provides guidance and framework on
applying a fiduciary process to health
benefits plans-e.g., Fiduciary in a Box;
and
* Learn the health benefits industry
yourself.
Regardless of the direction you take, Hugh
O'Toole, CEO of Innovu, said it best, a few
years ago: " Don't be the analog phone. Stay
relevant and offer real value. "
I'm old enough to remember the retirement
industry before transparency and fiduciary
standards came to the market. Retirement
brokers received finders' fees from recordkeepers,
and,
in a fund lineup, each mutual
fund paid a different amount.
Today, the standards are very different.
What caused this? Employee Retirement
Income Security Act Section 408(b)2 and classaction
lawsuits. Transparency and fiduciary
standards changed the way retirement plans
are managed. All compensation was disclosed,
conflicts of interest were laid bare. Old-school
retirement
brokers
became
consultants,
and now most are co-fiduciaries! Employers
applied a fiduciary standard to the administration
of their retirement plans, and the industry
changed. As a result, employees across the
country are now able to save for retirement
without being undermined by excessive fees
and conflicts of interest.
I know talking about health benefits
may be a change, and change can be scary.
Studying behavioral finance has given me a
better understanding of how humans react to
change-we're actually hard-wired to fear it
and consider it a threat. But the opportunity
to have a positive impact on employers and
their employees is massive. After all, as retirement
consultants, we already help employers
manage their liabilities and improve the
benefits they offer their employees. We wrote
the playbook. You already sit on the same side
of the table as your clients. Now is the time to
be bold and offer help where they need it.
Jamie Greenleaf is the co-founder of My Fiduciary Coach and senior vice
president, OneDigital Retirement + Wealth. She has acted in a fiduciary
capacity throughout her career, helping employers design and implement
retirement programs to create better outcomes for employees.
Your clients
will be
unable
to meet
these new
requirements
and duties
on their own.
34 planadviser.com | Summer 2023 | Awards & Innovation
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PLANADVISER - Summer 2023

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