The Role of The Insurance Broker With Your Health Plan

Do you have a method for selecting your broker or consultant?  Or a method to evaluate them?  Have you ever wondered how much they are compensated by insurance companies, and if this compensation affects your plan costs?

A broker or consultant is very influential to a company’s employee benefit plans and associated costs.  Employee benefits are a more serious matter today than in past years, especially since these costs are becoming so substantial.

Most employers are attempting to find benefit cost-saving solutions using alternative programs and funding methodologies to improve the company’s bottom line.  But the intermediary, the broker or consultant, will likely be the one who determines the employer’s success.  Employers need to understand the seriousness of this relationship and recognize that by choosing the right broker or consultant they can substantially save – both time and money.

Conversely, the wrong broker or consultant can cost them money and even negatively affect the employee’s appreciation of their benefit programs.

The insurance industry, by nature, is complicated.  Much of the terminology and insurance jargon is confusing.  Insurance companies, along with brokers and consultants, often speak in what the layman considers a foreign language.  For busy benefit personnel it’s difficult to translate this information into a language they can easily comprehend, especially when their world is already complicated with countless responsibilities.

Brokers and consultants play a meaningful role, but an agreement of understanding needs to be in place specific to what services they are providing and at what costs, along with a measurement tool evaluating their performance.

Benefits will become more important, even more so than they are today.  There’s a concern in the marketplace as to the quality and cost of benefits.  Because of the media attention, people are more cognizant of benefits and the focused aspects of costs.  In addition, these days many employers use their benefit packages as an incentive to draw quality employees to their company.  Employees are also looking for solid benefit packages at reasonable costs when determining whether to accept a position at a company.

Because of these factors, and the impact brokers and consultants have on plan design and pricing, broker and consultant efficiency needs to be maximized more than ever.  The benefit world is becoming more complicated with new alternative programs and funding methods.  It’s almost impossible for an employer to stay on top of these changes while managing their day-to-day benefit responsibilities.  Therefore the broker or consultant is needed, but these relationships need to be better understood to ensure the employer is receiving what they need and want. 

At Preferred Health Group, we enhance the employer value of the broker or consultant relationship, saving both time and money while also providing peace of mind.