Implementing an Effective Employee Benefits Program

September, 2011

What does an employee benefits broker do?

Implementing an Effective Employee Benefits Program 1. How do you find the best employee

benefits consultant for you? 2. Why choose your consultant first? 3. How is your consultant paid? 4. What factors should you consider when

choosing your benefits consultant? 5. Is your benefits broker working hard for

you?

1. How do you find the best employee benefits consultant?

Fewer than 50 employees (small group)

Recommendations

Interview

Compare services

More than 50 employees (large group)

Recommendations

RFP

Finalist interviews

2. Why choose your benefits consultant first?

Same rates from all brokers…

Give your broker negotiation power

Create competition between the carriers

3. How is your benefits consultant paid?

Commissions/Fee Arrangement Who is paying?

Large Group – more than 50 3%-5% of premiums

Small Group – fewer than 50 Published rates Risk adjustment factor (RAF)

4. What factors should you consider when choosing your benefits consultant?

Reputation – Trusted Advisor Premier Status with Carrier

Negotiating power to get you the lowest rates

Client Services Model 1. Strategic benefit planning 2. Employee support and advocacy 3. HR compliance & consulting 4. Workplace wellness 5. Health informatics and analytics 6. Technology services (customized website and HR technology) 7. Vendor relationships (FSA, HSA, HRA, COBRA, online enrollment,

HRIS) 8. Self-insured programs

5. What should your broker be doing annually?

• Census update• Survey employees • Vendor Selection• Market to carriers• Competitive and cost-effective plan options• Contribution strategy and wellness incentives• Health informatics – understand your utilization

and renewal

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