Health Benefits Broker

Wednesday, March 13, 2024 15:27 Posted by Admin
Employee benefits broker

Finding the right health benefits broker can be a tiresome undertaking. Not only do you want to work with a broker that will help keep benefits costs at a minimum, you also want to avoid sacrificing offerings that may aid in both employee recruitment and retention. As an employer, your employee benefits budget is often one of the largest operational expenses. For this reason, it is crucial that you know exactly what you will receive when you partner with a health benefits broker and how to find the best one.

Fortunately, there are brokers out there who care as much about both your business and your employees as you do. Let’s explore tips on how to find them, as well as some general questions that most people have when it comes to health benefits brokers.

Health Benefits Brokers vs. Agents

Before we dive any deeper, it’s important to understand the difference between health benefits brokers and agents. These terms are often used interchangeably, but they are very different professions. Generally speaking, health benefits brokers will offer you insurance from multiple insurers. The advantage to this is that they can help you determine which insurance company is fits the unique needs of your business best. Brokers will either charge a flat fee to the companies they work with or be paid based on commission for the policies they sell.

Health benefits agents, on the other hand, usually work for a single insurance carrier and essentially serve as a hybrid of sales and customer service. This means that an agent will only sell the insurance plans of the company that employ them. While it may seem like a no-brainer to work with a broker, the advantage to using an agent is that they are often able to lower costs and make changes easier since they work with just one insurance company instead of several.

What Do Health Benefits Brokers Do?

If you’ve ever tried to do the research and secure insurance for either your employees or for yourself, you know how complicated it can be. The role of a health benefits broker is to cut through all the nonsense and not only explain the process in terms that you understand, but also help you find the ideal solution for your insurance needs.

Your health benefits broker will outline all of your options in order to determine what group healthcare plan is best suited to your needs and budget. They offer their exceptional knowledge, convenient access to support, and provide recommendations that are customized to you. While it is certainly possible to go at it alone, brokers offer peace of mind knowing that your employer-sponsored or individual plan has the essential coverage at a great price.

Do I Need a Health Benefits Broker?

If you are an employer, you technically do not need a broker in order to offer health benefits to your employees. However, it is highly recommended that employers partner with one. Benefits are incredibly complicated, requiring a strong attention to detail, vast knowledge of the industry, compliance proficiency, and substantial time commitment. Plus, if you are the only HR representative at your company, you know exactly how impossible a task like this seems.

When you partner with a health benefits broker, you actually partner with a team of experienced individuals. They will help you choose the best packages for your organization and then be with you every step of the way – during open enrollment, billing, and issue resolution.

Considerations When Choosing a Broker

Before you even begin the process of finding the ideal health benefits broker, you must understand your needs. For instance, do you need any specialized services, like language translations? By knowing exactly what you need, it’ll be much easier to find the broker that can provide it for you.

Once you begin your search, you want to find a broker that has a well-established reputation. One of the greatest ways to find a quality benefits broker is to ask around for referrals. Speak with other business owners who have companies similar to yours and ask them who they use. Or, if you have no luck in that department, you can always do some online research via the Better Business Bureau and even Yelp.

Consider the following additional tips when it comes to choosing the best health benefits broker to partner with:

  • Consider all your options, but try not to have too many. There are nearly countless brokerages out there. While some will go above and beyond to gain your business by keeping costs down and not sacrificing benefits, most will simply follow market trends.
  • Inquire about the broker’s other clients. If the brokerage has a difficult time retaining their clients, it’s pretty likely that they won’t be a great fit for you. It’s also important to consider whether or not the broker has experience with employers in your specific industry? If your broker has a solid understanding of your industry, it’ll be easier (and more likely) that they can serve your needs.
  • Don’t be afraid to shop around. If you’ve had the same broker for several years, make sure that it’s still the right choice. After all, you have to do what’s best for your company and making a change may save you a ton of money – while offering better benefits to your employees, which aids hiring and retention.

Questions to Ask Prospective Health Benefits Brokers

Once you’ve narrowed down your prospective brokers to just a few, you want to ask them a bunch of questions in order to understand what they can offer you. To ensure that your broker is the right fit for your organization, consider the following questions:

  1. How do they control healthcare costs? A quality broker will provide professional advice to your HR and management teams to develop a long-term strategy. They will also negotiate with insurance carriers to get you the best rate possible.
  2. What services do they provide? It’s crucial that you are aware of the range of services your broker can provide. After understanding your needs, you’ll be able to know what services you need from your broker in order to develop the perfect benefits plan.
  3. What support will they give your company and employees? The best health benefits brokers will be invested in your employees and help them fully understand their options.
  4. Will you have a single point of contact? With a dedicated account manager, you’ll enjoy quick and easy access to support. They will be available to help answer your questions and resolve problems.
  5. How will they address the renewal process? Ideally, you want a broker that works on your plan all-year-long. That way, they are fully prepared when the renewal process begins between 45 and 60 days before the renewal date.

Whether you’re an employer looking to create the perfect benefits package for your employees or you’re looking for individual health insurance, Taylor Benefits Insurance Agency can help. If it’s a “health benefits broker” that you need, don’t hesitate. Contact us now to get the process started!

Written by Todd Taylor

Todd Taylor

Todd Taylor oversees most of the marketing and client administration for the agency with help of an incredible team. Todd is a seasoned benefits insurance broker with over 35 years of industry experience. As the Founder and CEO of Taylor Benefits Insurance Agency, Inc., he provides strategic consultations and high-quality support to ensure his clients’ competitive position in the market.

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