Can Not Blame Everyone

During the healthcare debate, I believe that two groups are at times unfairly blamed as part of the problem: employers and health insurance brokers.

A recent article mentioned that the latest National Federation of Independent Business survey reveals more than half of small business employers view the cost of insurance as their “most critical problem.”

“Fears over increasing health insurance costs continue to dominate the list of concerns for small businesses, very much in spite of the president’s health insurance reform law—certainly not an endorsement of the policy, nor a good sign for the future of the sector,” says Holly Wade, senior policy analyst and survey author.

Please remember that employer in California pay for at least 50% of the cost of the employee premium, and in many cases more.

So who do the employers turn to for help? The health insurance broker.
Our job is to help the employer review the 100’s of plans available and help them find value for the premium that they pay. A good broker will show you that they researched the market and provide you information necessary to confirm that you are getting value. For example, when I meet with a new or existing client about their renewal, I am armed with a 100+ page report that shows every carrier available to that client sorted by carrier and by premium costs based on their unique situation.
And how do most agents get compensated? Commissions, in other words, if we do not perform and provide quality service, we do not get paid.
So next time you hear our Insurance Commissioner blame employers and insurance agents (trying to cut our commission or us out of the process) for high costs of health insurance, maybe you should ask has he ever had to make payroll or has ever been paid for performance?