| The first step in
choosing health insurance for your company is finding a good broker. A
broker is a salesperson who has a state license to sell and service
contracts of multiple health plans or insurers. Some states require
that you purchase insurance through a broker; others allow you to go
directly to insurers. But the benefits of using an insurance broker
make it worthwhile in almost any situation.
The majority of group health insurance is
"written", or sold, by self-employed agents or brokers who work for
agencies. Often, these agencies will handle multiple benefits for your
company: health, dental, and vision plans, life insurance, and more.
They develop relationships with the providers that let them act more
efficiently on your behalf. They can also help your employees process
claims or resolve problems: many have “patient advocates” who your
employees can contact for assistance.
Your health care costs will be based on
your employee demographics, so the quotes you get from different
brokers will be fairly similar. Because of this, you should choose a
broker based on the level of service they can provide. Some attributes
to look for include:
- Flexibility – remember that the
broker works for you: they should be able to help you get the best
deal and the best plan for your employees.
- Responsiveness – even during the
evaluation process, pay attention to how long it takes the broker to
get back in touch with you.
- A multifaceted approach – by
managing several benefits and handling employees’ questions, the
broker makes themselves more valuable to you.
The broker you choose should be very
experienced in dealing with firms of similar size and in the same
industry as your own. Interview several candidates and ask questions:
- What services do you offer that I
will not be able to get from another broker?
- What types of problems can you solve
for my employees?
- Tell me about some problems you have
helped other clients’ employees resolve.
- Can my employees call you for help
24/7? Do you have a web site or online chat for employees to get
help?
Finally, location may or may not be an
important issue to you. It may be convenient to have a local broker,
but since your employees’ interactions with them will be online or on
the phone, it is not essential.
Watch out!
While almost all brokers are honest, there are some that may not
present policies fairly. They may offer a computerized search that
purports to compare all policies on the market, but favors their own
pet policies.
As with any business purchase, if you
come across a price that is too good to be true, you should be
suspicious. Every state has a department that keeps track of all
insurance agents and policies. If you have doubts about the legitimacy
of a broker or insurer, you can call and check up on them. Good
interviewing and use of referrals should also help you avoid these
types of scams. |
