Many small businesses make a common mistake with their group health insurance plan. That mistake is the belief that they get a better insurance deal by purchasing directly from the insurance company and foregoing the use of an insurance agent.
You as a business do not pay any more or less by using or not using an insurance agent to handle your insurance needs. It is not necessarily a wholesale, retail sort of purchase. The insurance agents commission is already factored into the price of the insurance plan. So if you forego the use of an insurance agent, you are foregoing an important service that comes with your insurance plan and you are not saving money. In fact most insurance companies really get a kick out of you going directly to the provider.
The next year they can increase your premiums by as much as 20 to 40 % because there is no intermediary, to see to your cause. Second you as a business will end up assigning a staff member to see to all of your insurance needs, including choosing the right plan for the company. This person has no training in the insurance industry, virtually no resources, and rarely knows the difference between one plan and another. The process of finding the right insurance carrier can take months and a lot of man hours, that can best be spent elsewhere. In the end you might end up with a pretty decent plan at not too high a cost. But what did it cost you in man hours, and in headaches. Plus, you don’t really know if you have the best plan for your needs.
Those small businesses that choose to use an insurance broker find that they get many different quotes and get many comparisons and analysis of different insurance companies. They even know when their renewal is coming up. The broker can help you choose the best plan that is appropriate for your needs and filter those that don’t meet your requirements out.
Recently we have seen a decrease in the number of companies that do their insurance processes themselves. Especially when they actually realize that the process is costing them money instead of saving them money. Brokers can help you when you have an insurance company problem. They are not going to call the 1-800 number, because they have contacts within the company that can help them, so it is a much quicker process.
The best part of working with a health insurance broker is that there is no cost to you as the business owner. The health insurance provider pays the brokers fee.