It’s no secret – healthcare costs are out of control and getting worse annually.
Forget about the subsidies and whether Congress extends them. Even if the subsidies are extended, the average Affordable Care Act Marketplace premium will increase by 30% in 2026, according to The Washington Post.
As an example, a family of four who was already paying $1,800 a month for an ever-growing higher deductible plan will see that same plan increase to over $2,300 on Jan. 1. And if the subsidies aren’t extended? Many will go completely uninsured or turn to a health sharing plan, which isn’t insurance at all.
This problem affects nearly all Americans who don’t receive employer-sponsored medical insurance. But it especially affects our industry and our lifeblood, financial advisors.
Independent Advisors At Risk
Our independent industry is uniquely at risk:
- Most of our advisors are 1099 contractors – not W-2 employees – and do not receive employer-sponsored medical insurance. So their only option is to purchase medical insurance on their own. Most only have the public marketplace as an option.
- Most advisors make well over the annual compensation limits and do not qualify for tax subsidies. They’re paying full freight. So whether the subsidies are extended has no bearing on their ever-increasing premiums.
- The growth of our industry remains based on recruiting wirehouse and other employee advisors, convincing them to go independent. Unfortunately, many are deterred from making that leap when they explore replacing the workplace benefits they’ll lose. This will continue to deteriorate in 2026 and beyond.
- Finally, advisors who want to grow their practices – which means hiring and retaining quality staff – typically can’t afford to provide medical coverage. Now they’re forced to target only potential staff members who have medical insurance through a spouse which eliminates many younger, more affordable people to fill those staff roles. The younger and single potential staff members will simply go to the company down the street who will provide them with benefits.
All advisors know this to be true. But too many executives and recruiters in our industry fail to realize this issue or, if they know it’s an issue, they simply don’t grasp the gravity of the problem and how it affects the daily lives of advisors.
For most advisors, the cost of their medical insurance is their heaviest financial burden.
For most advisors, the cost of their medical insurance is their heaviest financial burden, even more than their mortgage. If we want to keep our current industry strong and grow it in the future, we must lessen that burden.
The Advisor Health Plan does that for many advisors.
If an advisor is young, just starting out, and receives ACA subsidies, this plan likely isn’t right for them, as their costs on the open market may be considerably less. But for those successful advisors who make too much to qualify for the subsidies, it could be exactly what they need.
Recruiters and advisor solutions professionals should see if this could help their current advisors or help advisors who are currently employees make the leap to independence and continue to grow our industry.
Instant rates can be viewed now at www.AdvisorHealthPlan.com.
Chris Paulitz is a Principal at Advisor Group Benefits.
This editorial is published under WSR’s partner program and was not written by WSR’s staff or editors. For more information on how to participate in the partner program, contact zack.drew@wealthsolutionsreport.com. Views expressed are the author’s and do not necessarily reflect the views of WSR.
Advisory Group Benefits is a part of the Ascentix Partners Network, where Larry Roth, CEO of WSR, serves as Founder and Managing Partner. All decisions on editorial content are made by WSR’s editorial team.
