Worksite Resources Blog

How can "fee transparency" for health brokers help you sell Voluntary benefits

Everyone wants to know how Health Care reform is going to affect their business.There is no one right answer. The fact is, the answer is different for everyone. Commodities and services have a cost. Weather you build them into the price (premium) or you add it as an value-on, the fact remains, someone has to pay for it!

There are, however methods to mitigate these costs. One way to do this is to openly discuss with the owner the commissions received by their benefit brokers for these services. In California for instance, a benefits broker receives approximately $25 - $30 per employee per month in commissions for groups of 25 - 50 employees. On a group of 25 employees, this amounts to about $750 per month. Therefore, a simple strategy is to ask your prospect, "If you were paying your agent each month, would he/she be worth $750 a month"? Are they giving you the kind of services that you would pay them $750 per month to do?

If they are not worth it, than how much would you pay your health broker if they did not receive any commissions and what would you expect them to do for that compensation?

Do your employees understand the value of their benefits? Do they know how much it cost you to provide their benefit package? How do they receive this information now? If they do receive this information, what form does this information take?

One on One benefit communication with an explanation of benefits and a Compensation Report is the most proven methodology for communicating this information.

If you can not offer this to your client than you can not provide them with what they need most, Value!