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How is your broker paid? Are they receiving hidden payments from carriers influencing where they recommend their customers buy coverage? Tough questions but critical to your results.
Group health plan premiums are paid to the carrier each month. The carrier or vendor then pays commissions to your broker according to the terms of their commission agreement. When you change brokers, in most cases, the carrier will commence payment to your newly appointed broker as of the date you sign your Broker of Record change notice. Additionally, while the carriers and vendors will eventually provide your broker copies of inforce contracts and data, it often speeds up efficiencies when you provide copies of tools you have on file to allow them to audit, compare and negotiate on your behalf while working through red tape.
Do you have to change your current insurance company or vendors when we change our consultant or broker? NO. Sometimes it makes sense to leave things exactly the same until the next renewal. However, increased service and plan management support will begin immediately and on in to the renewal negotiation period.
Can I change my broker in the middle of my plan year, between renewals? YES.
Can we make recommended changes to our plan from your audit findings and not hire you to be our Broker of Record? YES. However, usually we are hired to take over management of the plan at that point due to the increased desire to keep achieving better savings and more efficient long term Plan management.
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