How to Stop Underserving Small Groups and Still Stay Profitable
MyHealthily
We are a healthcare technology platform by agents, for agents that empowers brokers to profitably write small groups.
For years, health insurance providers have struggled to effectively serve small businesses and other small groups. The challenges of underwriting, pricing, and administrative overhead often make this segment seem unprofitable. However, with the right strategy and technology, agencies can turn writing small group employee health benefits into a profitable, thriving part of their businesses.
The Challenges of Serving Small Groups
Small groups—typically businesses with fewer than 50 employees—face a unique set of hurdles when it comes to accessing quality health insurance. From an agency’s perspective, these challenges include:
High Administrative Costs: Managing a small group requires nearly the same administrative effort as a large group, but with significantly lower revenue per client.
Risk Pooling Issues: Small groups can be more volatile, making risk assessment and pricing more difficult.
Customization Expectations: Employers and employees often expect tailored plans that fit their needs, which adds complexity to the offerings.
Regulatory Constraints: Compliance with federal and state regulations can be cumbersome and costly, further shrinking margins.
Why Small Groups Are Still Worth Serving
Despite these challenges, there are compelling reasons why agents and brokers should focus on small groups:
Market Size & Growth: Small businesses make up a significant portion of the economy, and many are seeking affordable, quality healthcare options.
Customer Loyalty: When small businesses find an insurer that meets their needs, they are more likely to stay long-term.
Cross-Selling Opportunities: Small business owners often seek other insurance products, such as disability, dental, or life insurance, creating additional revenue streams.
Regulatory Incentives: Some regions offer subsidies or tax advantages to insurers who cover small groups, making it more financially viable.
How MyHealthily Can Make Serving Small Groups Profitable
The key to making small groups a profitable segment lies in efficiency, automation, and smart risk management. MyHealthily, an all-in-one health insurance platform, streamlines operations and reduces costs while improving customer satisfaction. Here’s how:
Automated Enrollment & Administration: MyHealthily simplifies policy management, enrollment, and billing through a digital-first approach, cutting down administrative overhead.
AI-Driven Underwriting: Advanced analytics and AI assess risk more accurately, ensuring fair pricing while maintaining profitability.
Self-Service Portals: Employers and employees can manage their plans online, reducing the burden on customer service teams.
Seamless Compliance Management: MyHealthily’s built-in regulatory tools help insurers stay compliant without excessive manual effort.
Integrated Benefits & Add-Ons: The platform allows for bundling health insurance with additional services, such as wellness programs or telemedicine, adding value while increasing revenue potential.
Parting Thoughts
Underserving small groups is no longer a necessity for profitability. With the right technology and approach, insurers can turn this segment into a sustainable and lucrative part of their business. MyHealthily’s all-in-one platform automates processes, leverages AI, and enhances the customer experience, transforming the way small groups access health insurance—benefiting both insurers and their clients.
The future of health insurance isn’t just about serving big enterprises; it’s about making quality coverage accessible and profitable for all, including the small but mighty businesses that drive the economy forward.