Open Enrollment is Coming, should you break up with your Benefits Broker?
‘Tis the season for Open Enrollment! We are approaching the holiday season pretty fast and this means January is right around the corner! Does your benefits broker provide you with all the “jingle bells” for this season? Now is a good time to evaluate if your benefits broker is on Santa’s nice list! Having a great benefits broker can make all the difference in the success of your open enrollment. Here are a few ways to identify a Benefits Broker who is a keeper!
Honesty with Numbers
There are certain things that some brokers would prefer you not know. A common misconception is that an employer can have various brokers “shop” the market and whoever can you give the best rate is the best broker. You can find further details about this myth via Gibson. When an employer has multiple brokers going to the “market” various times before renewal it can cause the carriers to peak their prices. Some brokers will ask you to name them as a broker on file so that they can “shop” for the best rates. While it is possible (depending on their leverage and relationship with carriers), numbers are numbers. The number of claims can certainly cause increased rates. Similarly, when your car insurance renews it depends on several things such as the number of tickets you have on record or insurance claims. If you have a high number of claims, then you can expect a higher renewal rate even with the best broker. A good broker will perform a data analysis before going to market and set at least some rough expectations on increased or decreased renewal percentages based on the trends they have seen in your employer size, number of claims, and industry. If a broker is insisting on naming them as the broker of record before doing this work, be cautious!
Engagement & Insight
Your broker should not just be engaged around renewal time. An engaged broker will keep in contact at the very least every quarter. Frequent meetings provide an opportunity to stay up to date with your company’s needs and for the broker to share the latest trends and updates within their company services as well as the industry.
Your broker is the expert, which means they should be bringing you the expertise and insight. The best brokers are those who bring data along with strategies. A good broker will bring data such as what your competitors are offering, industry trends, or medical renewal rates. They should also give a review of trends inside of your company such as claim percentages or plan participation percentages.
*Midsize Employer Plan offerings versues Large Group Health Plan Offerings from BenefitPro. Data like this can help you make not only the right decision for your company but to also stay competitve.
Strategies with Suggestions
Your broker should know your company in and out and be knowledgeable in their industry. For example, some small businesses post- covid have decreased in size. It could be that an employer with their current carrier was placed as a mid-size market employer and if they were to switch to a different carrier, their new carrier would reevaluate them and be set into the small business size market which could cause higher prices. As a matter of fact, Association Health Plans Inc., explains, “ Small group premiums are set by the insurance company, and once set, premiums are non-negotiable and can’t be discounted.” Your broker should make the right decision if it is feasible to switch carriers and what changes it could cause.
Your broker should make suggestions on what will help avoid increases as well as what can help decrease them. Additionally, your broker should know the kind of negotiations to bring back to the carrier. When you renew with carriers, sometimes they will give you a “no-shop” price for being a loyal client which could cause premium costs lower than the market.
Additionally, some brokers have a closer relationship with certain carriers over others and tend to pull a few strings in negotiations. There are times when you renew with the same carrier that the broker can negotiate “loyalty” prices and even lock down a “guarantee” price which would be valid from one to a few years. When claims are higher there are times when it is best to shop the market with a different carrier.
Delivering the Best Open Enrollment Experience
A good broker will have endless options and flexibility when it comes to your open enrollment. Brokers can offer options of an in-person enrollment and bring along freebies that carriers give brokers. It may not be a TV but who doesn’t love freebies? Another option can be online sessions available even after hours. You could also ask to have recorded sessions that your employees who may have missed the event could attend. This could also be helpful to share with new hires during their open enrollment or life event.
Assistance from a broker during open enrollment is vital. Is your broker offering help with the collection of enrollment forms or the online setup of your HRIS enrollment event? A broker can also help with a custom benefit guide that summarizes the prices and plans as well as some helpful information pages to help employees understand and make the right decision on selecting the best-fit plans.
Complimentary Perks & Support
Some large benefit broker companies can be scaled to provide direct support to your team. Some brokers have a Wellness Team who can even help in giving you drafts of wellness newsletters for your company at no additional cost. Others can also provide a full compliance and legal team to assist with plan design. It is also possible for a broker to have a “dedicated” Benefits Team where employees can call a dedicated number and get answers to their questions about benefits. This can be especially helpful for an HR Department of One.
All in all, having the best broker can make or break your open enrollment experience. Contact us to help you pick the best benefits broker.