Wellness Programs : Insurance Agent Concerns.
Shopping for healthcare programs through a broker is a fact of life for the vast majority of organizations. But how well is your broker meeting your needs?
And how can you work together better to minimize costs while getting maximum bang for your organization’s benefits buck?
What’s New in Benefits and Compensation conducted an exclusive survey of 195 subscribers to figure out how they view their company’s relationship with their brokers. Here is what they said –
Half see room for improvement
The good news – Almost half of your colleagues rate their relationship with their current broker as “excellent.” But that means the other half see some room for improvement.
Thirty-nine percent of respondents rated their broker relationship as satisfactory and said they were at least “reasonably happy.” the remaining 11 percent noted “unpleasant surprises” while 4 percent are actively considering a switch.
Tools for making purchasing decisions
Of course, the No. 1 reason any business works through a broker is to find the best deals on health benefits. But many of your peers pointed to a few areas where their brokers could help make their lives a little easier.
First and foremost, your peers say they’d love for their brokers to provide user-friendly – but thorough – return on investment data they are able to use to benchmark different plans.
It’s worth discussing with your broker how much arm-twisting the broker can do with medical plan carriers to get key data in your hands. Two specific areas of data benefits pros say they’d like help from brokers –
• obtaining and sharing claims cost data to compare to premiums, and
• benchmarking your typical plan costs against those of similar-sized firms in the region.
Unfortunately, claims cost data is often hard to pry loose from insurers, at least for smaller employers’ plans.
Reason – Without this data, it’s tougher to judge if your premium rate adjustment at renewal time is fair. Fewer than half of respondents (46.3%) say they’ve ever discussed such information with their brokers.
Obtaining benchmarking data on similar-sized plans assists you see how comparably your costs and plan designs stack up in your area. Roughly 43 percent of respondents say they’re armed with at least some of this info when it comes time to decide whether to stay with the existing plan.
Earlier renewals
It’s worth talking with your broker about ways to push for the earliest possible renewals – and strategies for making sure your carrier doesn’t hit you with any unpleasant surprises.
One notorious game insurance companies play with corporations’ plans is to wait until the last moment to reveal the new premiums at renewal. That way, there’s less time for negotiation – or to shop around with the insurer’s competitors.
About 28 percent of respondents report getting their renewals about 30 days before the rate kicks in. Different brokers use different benchmarks for securing renewals. A minority of respondents (19.5%) have seen them as early as 90 days ahead.
Taking work off HR/Benefits’ plate
The benefits brokerage marketplace is highly competitive. Some brokers try to set themselves apart by offering clients so-called value-added services.
Among your peers, the most well-liked services are those which relieve the company’s HR/ benefits manager of time-consuming tasks. Some examples –
• assessing plan documents
• Auditing (and, when needed, reconciling) carrier bills for errors
• monitoring plans for compliance (HIPAA, COBRA, etc.)
• offering tech support for a benefits intranet and/or staff member self-service software, and/or
• assisting with worker education.
