What Are Important Questions To Ask a Benefits Broker?

The questions you ask an employee benefits broker should help you clarify whether they:

• Understand your company’s needs
• Have your best interest in mind
• Are abreast of new developments in the industry
• Ensure your benefit programs run smoothly
• Provide innovative insurance navigation tools like Healthee

Choosing wisely here can make a huge difference in how much money your company saves, keeping everything above board, and making sure your team is happy.

Six types of questions to ask benefits insurance brokers

Identifying conflicted interests

Figuring out if the insurance broker you’re chatting with has their own agenda is super important.

If they’re pushing certain plans because they get a bigger paycheck from those, rather than what’s best for you, you’re in for trouble.

This can lead to you ending up with insurance that’s too pricey or doesn’t cover what you need.

Ask these questions to identify potential conflicting interests:

• What commissions and bonuses do you receive from carriers, in total?
• Is more than half your compensation coming from one carrier?
• How do you shop the market and find the best offer available?

Assessing expertise and experience

If the employee insurance broker is experienced but not in your field, prepare to face some roadblocks down the line.

Every industry has its own set of rules and needs.

And a “broker-industry mismatch” can lead to advice that doesn’t quite fit. Leaving you with coverage that’s either too much or not enough.

Here are the questions you can ask to assess your broker’s experience in your industry:

• How long have you been working as a benefits broker?
• Can you provide examples of how you’ve helped companies similar to ours?
• What different industries have you served in the past? How are the benefit offerings different from one industry to another?
• What type of benefits have you found the most success with companies in the same industry as ours?

Understanding the scope of services

Getting crystal clear on your broker’s programs is super important. If down the road you realize they can’t offer something you really need, you’re stuck in a tough spot.

Make sure right from the start that they can meet all your needs. So you don’t run into surprises later that leave you and your team hanging.

Here are questions you can ask to understand the benefits broker’s scope of services:

• Do you offer support with benefits administration technology?
• How do you assist with claims issues or disputes between employees and carriers?
• What kind of employee education or enrollment support do you provide?

Evaluating communication and support

You are going to have a rough time if your broker is hard to get ahold of or just doesn’t gel with how you like things explained.

Employee benefits navigation in itself is complex and don’t make it harder by choosing someone who isn’t supportive of every step of the journey.

Ask the following questions to evaluate a benefits broker’s communication and support:

• How often will we have review meetings or updates on our benefits package?
• What is your response time for queries or issues that may arise?
• Can you describe a situation where you had to advocate on behalf of a client? What was the outcome?

Clarifying fees and contractual obligations

If payment structure and contracts aren’t clear from the start, you could end up in a sticky situation later.

Extra charges and being stuck on a plan you no longer need are possible consequences of unclear program structures.

Avoid those caught-offguard moments by having everything laid out clearly from the beginning.

Consider asking a benefits broker the following questions to clarify fees and contractual obligations:

• How do you structure your fees, and what services are included?
• Are there any long-term contracts or cancellation fees involved?
• Can you provide a transparent breakdown of all costs associated with your services?

Considering the broker’s onboarding and open enrollment processes

A smooth and efficient onboarding process can significantly reduce administrative burdens, ensure compliance, and facilitate a seamless transition for your company.

Also, since the first step in any benefits plan is to help employees pick the right options, it is your broker’s job to help you create a seamless open enrollment experience for your employees.

Here are some of the questions you should ask to gauge if you’ll have a smooth onboarding experience with this broker:

• Can you walk me through your client onboarding process?
• What resources and tools do you provide to help educate and onboard employees onto their new benefits plan?
• How do you support clients during open enrollment?
• Can you provide examples of challenges you’ve encountered during the client onboarding or open enrollment process, and how you addressed them?

5 ways to evaluate the employee benefits broker’s response

Now you know what questions to ask, it’s also important to know how you would assess a broker based on their answers.

Here are some ways to gauge if the broker you’re talking with is a perfect fit for your company:

Gauge transparency and honesty

This is the most evident way to assess an insurance broker based on their responses to your questions.

You want to assess whether the broker directly answers your questions. Especially regarding fees, commissions, and any potential conflicts of interest. Evasiveness on these topics is a red flag.

Also, it’s critical that the broker is honest about the limits of what they can offer or do. These brokers are often more trustworthy than one who promises everything.

Cross-verify information

After receiving answers, especially regarding claims about savings, benefits options, and network size, do your own research to verify these claims.

If you can verify with the carriers directly, that’s ideal. But for busy HR managers or business owners you may consider looking it up using online resources.

Evaluate communication style

Good brokers can explain complex insurance topics in simple terms. If you’re left confused by their answers, it might indicate communication issues down the line.

Also, note how quickly and thoroughly the broker responds to your questions. Prompt, comprehensive answers are a good sign of their commitment to client service.

Consider their questions for you

Assessing if it’s a broker-company fit isn’t a one-way street.

Sometimes you can gain more insights about the broker from the questions they’re asking you rather than the questions you’re asking them.

A broker asking insightful questions about your company indicates a thorough approach to understanding your needs. It’s a good sign they’re thinking about the best fit for you.

If they’re not asking any probing questions, that’s probably not a good sign.

Check for proactivity and forward-thinking

This is related to the previous point but instead of them asking insightful questions, here you want to stay alert especially when they’re giving suggestions.

A broker who suggests new ideas or innovative solutions is likely to stay abreast of industry trends and look out for your best interests.

You want to look for signs that the broker is thinking about your long-term needs, not just immediate solutions. This can be evident in their questions about your company’s future or in discussing scalable benefits options.

Benefits broker FAQs

What is a benefits broker?

A benefits broker is a professional who helps individuals and businesses pick out the best health insurance and other benefits for their employees. They act as an intermediary between companies and insurance providers. They assess what your company needs, then look for the best deals to match. A good health insurance broker will give you tailored options for your company and will guide you in picking the best program.

What are questions to ask a health insurance broker?

Since health insurance involves unique complexities and regulations, it is important to ask a health broker about what plans they recommend for your specific employees and why. In addition, try to gauge whether they are keeping abreast of new developments and what they do in cases of disputes.

How does a health insurance broker get paid?

Health insurance brokers make their money through commissions. When they help you pick a health insurance plan, the insurance company pays them a percentage of your premium. Some brokers might also charge a fee for their services, but that depends on the broker. And if there’s a direct fee involved, they should inform you about it upfront.

How much commission does a health insurance broker make?

Usually, brokers get a percentage of the premium you pay for your insurance. The percentage varies from location, insurance companies, and the broker’s agreement with the insurer. But typically, brokers in the United States earn somewhere between 2% to 8%. For larger group plans, the commission rate may be lower because the overall premiums are higher.

How are agents and brokers different in health insurance?

The biggest difference is to whom they work for. An agent works for a company and a broker is an independent contractor. Agents usually work for ONE insurance company, so they’re all about selling what that company offers. While insurance brokers work independently. They communicate with multiple insurance companies hence, they have a wider array of programs to offer and are less susceptible to biased comparison.

Should I choose a broker or an agent?

Choose a broker if you want a more transparent view of your options. But if you’re already keen on one insurance company’s offerings, an agent can help you pick the most fitting insurance options.