The Importance of Broker Selection: 10 Must-Ask Questions
Selecting the right health insurance broker is crucial to an organization’s overall strategy for managing employee benefits. This decision is even more critical when a company has decided to leave a PEO and now seeks direct representation within the health insurance carrier marketplace. Finding the right expert to represent your company is more difficult than normal because the consultant must fully understand the underwriting implications imposed by the carriers. Coming from a PEO, the employer bears no loss ratio or any claims history from the prior benefit plan. This creates an unknown or risky scenario for the insurance underwriter. This broker or consultant should know how to negotiate around this by presenting the most favorable explanation as to why the employer has been insured through a co-employment arrangement.
