Beyond Pay-to-Play: The New Rules of Carrier and Ben Admin Partnerships

For years, the relationship between carriers and benefits administration (ben admin) platforms was governed by a simple, unwritten rule: pay to play. Voluntary Benefits Carriers paid for access, and platforms provided distribution. But as I’ve seen in recent discussions with major carriers and ben admin leaders, that era is officially over. The market is shifting, and the new rules of engagement are being written in real-time.

This isn’t just an incremental change; it’s a fundamental rethinking of how value is created and measured in the benefits technology ecosystem. The old model of tech credits as a simple distribution fee is being replaced by a more sophisticated, value-based approach. For brokers, employers, and platforms, understanding this shift is no longer optional—it’s critical to survival.

The Question is No Longer “Who Pays?” but “What is the Value?”

Carriers are no longer asking, “How much does it cost to be on this platform?” Instead, they’re asking, “What is the ROI of this partnership?” They are looking for demonstrable value in the form of deeper integrations, cleaner data, and a better end-to-end experience for their customers.

As one carrier executive put it, “The value is no longer just in being on the platform. The value is in the efficiency and experience that a deep integration creates.”

This means that ben admin platforms can no longer compete on distribution alone. They must now compete on the quality of their technology, the depth of their integrations, and their ability to deliver a seamless experience for carriers, brokers, and employers.

Three Signals of the Shift to Value-Based Partnerships

This shift isn’t happening in a vacuum. It’s being driven by three key trends that are reshaping the benefits landscape:

1. The Demand for Deeper Integrations: Carriers are prioritizing platforms that offer robust, API-driven integrations that automate data exchange, streamline enrollment, and reduce administrative burdens.

2. The Rise of Transparency: Carriers, brokers, and employers are all demanding greater transparency into the financial arrangements between ben admin platforms and their partners.

3. The Move Toward Tiered Models: Some carriers are adopting tiered or menu-based partnership models that tie compensation to the level of integration and value delivered.

These three signals are not separate trends; they are interconnected forces pushing our industry toward a more transparent, efficient, and value-driven future.

Are You Asking the Right Questions?

This new landscape requires a new set of questions for every stakeholder:

•Carriers: Are you measuring the true ROI of your ben admin partnerships?

•Ben Admin Platforms: Is your value proposition built for the future of benefits?

•Brokers: Are you recommending platforms based on value or on hidden financial incentives?

•Employers: Do you understand the financial arrangements behind your benefits technology?

The answers to these questions will determine the winners and losers in the new world of benefits technology.

At RevGem, we help our partners navigate these complex market shifts. We believe that the future of benefits will be built on a foundation of collaboration, transparency, and a relentless focus on delivering demonstrable value.

Is your strategy built to last? Contact us for a strategic review to ensure you’re ready for what’s next.