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Group Health Benefits - without a broker?

ssigman1ssigman1 2 Posts
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We are in Indiana and are an employer with 90 employees.

Does anyone know if it is possible to work directly with health/dental providers WITHOUT going thru a insurance broker?

 We currently use a benefits broker, but are lookign to cut costs.  Altough we do not pay the brokers commissions, they are paid by the providers....I am sure ultimately we do becaue it ups the price of the insruance.  Wondering if we cut out a broker, and soliciet our own rates individually from providers on behalf of the group...if it will cut our rates at all.

Anyone know if this is even possible?  

 

 

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  • TXHRGuyTXHRGuy 1,586 Posts
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    [quote user="ssigman1"]

    We are in Indiana and are an employer with 90 employees.

    Does anyone know if it is possible to work directly with health/dental providers WITHOUT going thru a insurance broker?

     We currently use a benefits broker, but are lookign to cut costs.  Altough we do not pay the brokers commissions, they are paid by the providers....I am sure ultimately we do becaue it ups the price of the insruance.  Wondering if we cut out a broker, and soliciet our own rates individually from providers on behalf of the group...if it will cut our rates at all.

    Anyone know if this is even possible?  [/quote]

    That kind of deal already exists but I don't know if it's available in Indiana or who a provider might be.  In other places, you can get non-insurance health benefits and provide them to your employees on a pass through basis.  They are generally affordable and go great with HSA qualified plans because they take care of the "I have a sinus infection" situations without paying big for the doctor visit (especially since your HSA qualified plan will also hit them between the eyes when they pay for the antibiotic).

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  • dhall111dhall111 123 Posts
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    My experience has been that you generally don't reduce your costs by dropping the broker.  Most carriers are a lot more comfortable working with brokers than they do individual companies.  Brokers generally develop relationships with the carriers that you and I could never maintain.  The brokers bring the carriers business and often they can get better deals because of their volume of business.  Think of it this way . . . if you have 90 employees the carriers aren't all that interested in dealing with you compared to a broker who brings them groups which in total, bring them them thousands of lives. 
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  • hrlady1hrlady1 12 Posts
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    Along this line, I know benefits are all over the board and so much depends on the size of the company, past claims, etc.  But does anyone know what an average rate increase percentage there might be for dental coverage at this time?
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  • IT HRIT HR 595 Posts
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    As you said there are so many factors that are involved, but the last I heard the average was about 8-10% increase. 

    In my opinion on the issue of the broker, I wouldn't give up my broker and go straight to the insurance company.  There have been many issues that he has helped me (for the company) and my employees (with claims, etc.) resolve based on his contacts that I would have never been able to accomplish.  In the long run I think he has saved me money and not cost me more.

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  • SubGrapHRSubGrapHR 73 Posts
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    Our firm is of similar size (74 ee) and I can't imagine the burden of being without the broker.  The broker has benefited me in several aspects, perhaps the most important is the resolution of incorrect billing to my employees from the HCP, etc.  Remember, employers have limited access to PHI due to HIPAA and this is where a broker can be an added benefit to your employees.  Versus them fighting it out with the carrier, the broker may on their behalf and still have HIPAA protected access to their health info whereas the employer cannot.  I call that a value-add.  And to touch on what was stated previously, brokers do come with leverage in the market depending on how much business they bring to the carriers, etc.  That relationship aids us tremendously in negotiations - and considering I am a one man shop - I literally need them to handle that for me.

     Our dental costs this year actually went down 16% by switching to MetLife with an identical plan.  That was as of March 1, 09.  Utilization, etc. all play a role but I am under the understanding that dental is one of those options that remains flexible and with a good broker (yes, I am pro-broker), you can probably find much better rates than 8-10% increases.  IMO.

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  • apusaapusa 1 Post
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    I see this post is from 2009, however are you still looking for a broker? I a90m an independent broker with AmeriPlan looking for business to work with. We have low cost, high quality plans. We are a discounts benefits company, so theres no paperwork or waiting periods.

    I would like to give you a quote on our $49.95 Total Health Plan

    You say you employee 90....

    That would be $4495.50/month

     Don't forget, you can choose to do a half cost, no cost, or all cost with your employees as well.

    With your group number of employees I am willing to half my commissions with you.

    Therefore each month you will receive $889.10 back

    A total of $10,789.10 annually

     I will also waive all registration fees for your employees.

    I hope to hear back from you.

    www.businessbenefits.webstarts.com

     

    Jillian Mills

    Benefits Specialist

    jillian.apusa@gmail.com

     

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