After a long career in insurance, specifically employee benefits, a client asked me why he could not arrange for a medical insurance program for his agents, all of whom were 1099 contractors – not employees. I explained that the law did not generally allow for a 1099 contractor to participate in an employee benefits program sponsored by their “employer” of affiliation. After some discussion, it became clear that this client was willing to get involved and set up a program for these agents, becoming the plan sponsor.

After some considerable lobbying efforts and petitioning the department of insurance for acceptance, we were successful in winning approval, assuming we could find a carrier to underwrite the group. Our relations were good in the market and resulted in locating such a carrier. With the client’s financial commitment, we launched the program in 1998.

Over the next three years, the plan was successful and expanded beyond this original client. However, the carrier underwriting the case announced that they were being acquired. The new carrier, after some considerable discussions, told us they were not interested in continuing the program. We were told to “find another market” and exit the program with them in thirty (30) days.

Upon hearing this news, we began a full-court-press to locate an alternate market. That search resulted in identifying an independent union in the market willing to take the participants. This shift introduced us to the Independent Union Marketplace. Within the next two years, it became apparent that our members would be better served if we established our own organization.

Therefore, in June 2004, Real Benefits Association was launched. The organization expanded almost immediately to many states, involving contractors in many areas of endeavor and locale. The resulting network or membership and organizers is today in 22 states and still growing.