Is Change Necessary: A Guide to Evaluating Your Current Health Agent or Broker Relationship
Finding the right health insurance for your employees often means turning to industry professionals for help. Get the most from your agent or broker partnership by avoiding common errors through effective communication.
Choosing a health insurance plan is one of the most critical decisions that businesses and their employees make annually. Many business owners turn to their health agent or broker for guidance and plan options to see a more expansive view of the benefits landscape. With new regulations and plans always appearing, these relationships are more important than ever.
According to recent data, the U.S. has over 900,000 licensed agencies or brokers. In theory, these professionals are meant to be the "experts" – helping companies find the best benefits tailored to individual employee needs while keeping costs within reason for business owners.
However, sometimes, these relationships fall short of expectations. Let's explore some red flags that might mean it's time to move on from your health agent or broker and offer tips when entering your next benefits partnership.
4 common agent or broker red flags to look out for
"Business partnerships, especially with health agents or brokers, can be like a marriage," says says LaTasha Ahl, licensed agent at Automatic Data Processing Insurance Agency, Inc. (ADPIA®) and vice president of sales at ADP®. "When they work for both sides, it's wonderful. But when one side falls short, it can leave you feeling alone."
With that in mind, here are a few ways that your current health agent or broker might be missing the mark with your expectations or needs:
1. They neglect better options at renewal time. One of the primary responsibilities of a health agent or broker is to assess the market for more appropriate options at renewal continuously. However, the reality is that some may become complacent – choosing to stick with the same plan year after year without exploring alternatives.
For example, let's say your business projections indicate that health premiums will increase by a sizeable amount next year. When you seek advice on handling this, your current health agent opts for autorenewal – expecting your business or employees to shoulder the additional costs without investigating any new, potentially cost-saving options.
2. They ignore employee needs or usage of benefits. Any successful benefits package should address the needs and preferences of employees. Unfortunately, some health agents or brokers overlook this crucial aspect, leading to dissatisfaction and additional costs for employers and employees.
For instance, let's say your company's current health plan includes acupuncture coverage, but over the past few years, only a few employees have utilized these services. When surveyed, your employees consistently say they'd like to add mental health support to their plans. Despite this repeated feedback, your broker fails to make the necessary adjustments or explore offerings your employees want – leaving acupuncture in and mental health services out.
3. They fail to provide proper support or tools during open enrollment. Open enrollment can be a chaotic time for employers and employees. Everyone wants to make the right decisions. To facilitate best practices, there needs to be careful and consistent coordination and communication among all stakeholders. When health agents or brokers cannot provide sufficient support or tools, it hurts everyone involved in decision-making.
For example, a comprehensive guidebook or online tools would help employers and employees make informed decisions about their health benefits without taking up all of their time. However, let's say your agent or broker either doesn't have the resources to provide these or doesn't feel the need to do so. As a result, both you and your employees suffer.
As a business owner, lacking the latest tech tools creates more manual work for yourself or your designated health business administrator. Think of all the paper applications, the need for manual data entry, and keeping track of deadlines the old-fashioned way. This also takes valuable time and attention away from other business activities.
Likewise, your employees could feel overwhelmed and uninformed of their options. Ultimately, this makes choosing the right benefits harder for everyone involved.
4. They don't actively explore the latest cost-effective alternatives. In today's challenging economic climate, businesses constantly seek ways to protect the company bank without sacrificing quality. With health benefits, some agents or brokers may not actively explore innovative solutions like level-funded health plans or Individual Coverage Health Reimbursement Arrangements (ICHRAs).
For instance, you attend an industry leadership summit where you hear others discussing the benefits of new coverage options, such as ICHRAs. When you bring it up at your annual reevaluation meeting, your health agent dismisses the idea without stating why it won't work for your company. Consequently, your business and employees miss out on potential savings and plan flexibility.
Sometimes, business owners don't understand whether what they have is good or bad or even meets their needs.
This is where your business should take an accurate accounting of your specific situation. Before you pull the plug on your current arrangement, ask yourself questions like:
- Are my employees getting their desired health benefits?
- Am I retaining or losing my top talent due to my benefits offerings?
- Is my agent or broker seeking new ways to offer impactful health benefits?
- How are my benefits offerings affecting my company's bottom line?
"Self-reflection is important before deciding it's time to seek a second opinion," concludes Ahl. "This way, you'll know your needs and what you're looking for in a benefits partner."
To learn more about helping your employees and your business with health coverage needs, check out ADP® and their affiliate, Automatic Data Processing Insurance Agency, Inc. (ADPIA®), for the latest in health benefits coverage.
*To take advantage of Benefits Connector with Ease, clients must have a group health policy brokered through Automatic Data Processing Insurance Agency, Inc., and must be an ADP payroll client using RUN Powered by ADP® or ADP Workforce Now®, excludes Autopay clients and clients using ADP Workforce Now® Next Gen. Certain optional features within the Ease application may require a fee.
Automatic Data Processing Insurance Agency, Inc. (ADPIA) is an affiliate of ADP, Inc. All insurance products will be offered and sold only through ADPIA, its licensed agents, or its licensed insurance partners, One ADP Blvd. Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all states with all carriers. Some carriers may charge an additional fee for services. This information is not intended as tax or legal advice. If you have any questions, contact a tax or legal professional. ADP, the ADP logo, and ADPIA are registered trademarks of ADP, Inc. Copyright © 2024 ADP, Inc. All rights reserved.
