It may never have been more important to get healthcare benefits piece right. After all, healthcare costs are rising, and the field is increasingly complex. And now, with a labor market largely tightened due to the pandemic, your benefit offerings will significantly impact your ability to recruit and retain talent. Plus, it’s just a fact: healthy employees are more productive and engaged.
So, you need a benefits broker to see you through. And not just any broker. In this uncertain economy, you need to be sure about your investment. Here’s what you should know about how to choose an employee benefits broker.
Exactly What are Benefits Brokers?
These are professionals who are aware of and can access all the employee benefit options available and you can help you cut through the offerings. They know which vendors to turn to for certain healthcare benefits, and how much these benefits are priced.
Brokers assess each employer’s unique circumstances then survey the market to get you the most suitable coverage at the best value.
Can You Break Down How Brokers Help?
Each broker is different, but in general, you can expect them all to:
- Assist you with picking insurance. These are experts, so they’ll help with the selection of insurance that covers health, life, vision, dental, vision, etc.
- Help you with compliance. It’s imperative that you remain in compliance with regulations and laws such as the ACA and ERISA to avoid heavy penalties.
- Help you contain costs. An employee benefits broker will counsel you on how to contain overall health insurance costs. You must have value.
- Negotiate with benefit providers. Again, this is their field, so let them get the best deals available.
- Solve problems. And problems you’re going to have, likely with benefits administration or claims.
- Assess your current benefits program. You broker will study your situation and counsel you on what modifications should be made and how much in savings those alterations will produce.
- Help your people. Your employees will likely have questions about benefits or coverage. The broker can answer these as well as assist with claims. During enrollment period, brokers are responsible for educating employees about their options.
What’s Important to Know When Choosing a Benefits Broker?
- You need strong candidates. There are lots of brokers out there, so you must whittle your list down to those who specialize in organizations of your size and who “get” and can address your specific needs and goals.
- You should have your candidates answer written questions. You should do this as part of the hiring process. For one, doing so will help you clarify in your mind what you’re looking for, and it also allows candidates to delineate what they can provide.
- You shouldn’t let “personality” be the decider. Of course, it’s important to have good chemistry with your broker; rapport is key. However, it’s more important to conduct side-by-side comparisons in terms of offerings and answers to the questions you posed.
Yes, it’s vital that you not only use an employee benefits broker, but that you understand what’s expected and how to choose one. You do need a partner who can see the big picture and think long term, but also one who can support you year-round. After all, the average costs of health benefits comprise about 14 percent of your total payroll. That’s nothing to sneeze at.
And remember, employees are increasingly demanding robust benefits packages, so it would behoove you to provide the best benefits possible, and at the best value. A good broker will help you to do just that.
