Questions to Ask Your Existing Group Benefits Broker
Let’s face it; group health insurance isn’t getting any cheaper. You can no longer afford to work with a group benefits broker who isn’t truly representing your interests. By working with the wrong broker, you could be spending a lot more on your employee health insurance than necessary.
Do you want to know if your group advisor is truly independent? Many representatives will claim to offer the best rates by shopping all the providers on your behalf, when in reality they only work with a few insurance carriers.
Why is it unwise to work with a broker who only reps a few insurance companies? All insurance companies have their own “target markets” – these are market sectors, or demographic sectors that they offer the best pricing to. You should be with an insurer whose target market is you! Only an employee benefit specialist who works with all carriers will be able to source this for you.
Your advisor should be getting you the best possible pricing and they should volunteer/recommend to “go to market” to get comparative quotes from other insurance companies every three years. He or she should also be negotiating renewal rates with the provider instead of letting your plan renew automatically. As expert profit-makers, insurers will rarely offer unsolicited price breaks, and they sure don’t negotiate with themselves.
If your broker is paid on commission, you should know if this directly impacts the premium your company pays. In order to determine good value for services, not only do you need to know what is being offered, but also how much you are paying for it, only then can you determine if the value is there. Great benefit advisors will save you money, not add to the overall cost. Lastly, find out if your broker is truly a “group specialist.” Ask your broker for current updates on the group insurance industry and healthcare industry to see if they are current whenever possible and make sure your representative has kept up with industry developments.