Benefit plans represent the 2nd or 3rd highest expense in running your business. Keeping those cost under control is the job of your group insurance broker. Yet many companies don’t really know if they are receiving the best service and support from their broker. They continue to use the same person for years because there is a perceived idea that “changing my insurance broker is a hassle”. The truth is, if your broker is not paying attention to your business, it is probably costing your company a substantial amount of money. Your broker should be a proactive partner that is communicating with you about the best options currently available for your company’s insurance needs.
The 7 myths have kept customers tied to the same broker for years without any benefit to the client. Don’t let these myths cost you any more money!!
Myth #1 – You have to wait until renewal time to change brokers.
Truth #1 – If you are not satisfied with your broker, you have the right to replace them at ANYTIME. Most carriers will accept a change of broker letter effective the 1st of the month following the receipt of the letter. All our clients are valuable to us. We make sure that our clients consistently receive the best service and attention to their account.
Myth #2 – If you change brokers, you have to change plans or you need to complete all new paperwork.
Truth #2 – The only paperwork necessary to change brokers is a formal broker of record letter to the current carrier (we can supply one to you). There are no disruptions in service. Plans don’t change and benefit adjustments are made at your convenience. We handle transitions seamlessly.
Myth #3 – Your company has no choice but to accept the high double digit increase.
Truth #3 – There are more choices than ever today for employers. Companies can explore plan designs, funding methods, contribution schedules and voluntary options. We are your strategic consultant. We understand the importance of your benefits program to the success of your business plan. Our relationship with many carriers gives us the opportunity to negotiate on your behalf for any possible rate concession you are entitled.
Myth #4 – You can only receive competitive rates if you are a large company.
Truth #4 – There is an advantage to having more employees because it enables the carriers to spread the risk on a larger group. However, the rate for all medical plans over 50 employees and ancillary plans over 10 employees can be negotiated based on the demographics of the group. Even groups under 50 employees have options if you know where to look for them. Our experience preparing plan designs for large and small clients gives us an edge over others who don’t work with both types of clients.
Myth #5 – You can only obtain the best rates if you have a large broker negotiate on your behalf.
Truth #5 – All brokers have access to the same rates and have to be quoted the same rate on a particular plan design. Only a change of benefits can effect a change in the rate. The question really is-Does your broker look at all the available alternatives and provide you with a range of options to select from? As a broker with a national client base, we negotiate with carriers throughout the country. We provide a personal commitment to our clients that guarantee them the best rates for their specific needs.
Myth #6 – You have to wait until renewal to change carriers.
Truth #6 – Many carriers will not allow plan design changes mid-year. However that’s negotiable based on your size and the prospect of them losing the case. In addition, for fully insured cases, you can change carriers with 30 days written notice. We work on your behalf as your liaison with the carrier. You are never told to call the carrier. We handle all your benefits plan issues.
Myth #7 – Small companies have no choice of plan designs or benefits options.
Truth #7 – Carriers today are giving smaller companies many of the same choices that large market companies receive. We are aware of the newest plan options from the carriers. We sort through them for you and present the best options for your particular needs.