The health insurance premiums never seem to stop. The 2015 Employer Health Survey conducted by the Kaiser Family Foundation found that annual premiums for employer sponsored family health insurance increased 4% to $ 17,545 last year. On average, the workers each paid $ 4,955 for the premiums. A simple way for small businesses to reduce the cost of health insurance is to use the services of a broker or agent.
While the brokers work for several insurers at the same time, the agents represent a company. The agents are paid directly by the insurance company, but you may be asked to pay a broker for the services we provide. Choosing the right agent or broker is important to find the most appropriate and most economical coverage for your employees.
Is the broker registered? – You must complete a certain number of training sessions in health insurance and related topics. They then have to take an exam, which is conducted under the supervision of the state insurance authority. The agent you set must have the required credentials. It may also be a good idea to call the State Insurance Commissioner’s office to check for complaints against the person you wish to name.
Reference checks: Before you mandate a broker or agent to help you find the best coverage for your employees, it’s a good idea to do a background check. Ask for a conversation with some customers. Is your workforce similar to yours? If the person you want to appoint usually works for large companies and you are the first small business customer, this may not be a good option. Try to find someone who has experience in meeting the needs of organizations as big as yours.
Which services are provided? – It is better to clarify some issues before choosing a broker. Is the person you are considering familiar with the Affordable Care Act? The health insurance industry is very complex with many regulations that change regularly. If you do not find someone who is familiar with them, you may not receive adequate service.
Will your current policy be treated even if it was arranged by another person? What support do you receive for billing and claims issues? How are the renovations handled? – Do you simply get a print-out of the different options in the health plan and are you asked to choose the most appropriate one? You definitely do not want someone to offer such services. The renewal process must begin between 90 and 120 days before the payment due date. This will give you enough time to understand the changes that have occurred over the past year.
During this time, the number of employees may have increased. Your age profile and health insurance requirements may not be the same as in the previous year. All of these factors could lead to you having to change your health insurance with a later change in insurance premiums. A competent broker must be able to guide you through this entire process. An agent or a broker can be of great help with health insurance for your employees. But much depends on the attention with which you make your selection. Try to find someone who has several years of experience in this field and has a number of satisfied customers.