Why You Should Partner with a Benefits Firm for Employee Group Health Insurance
Most business owners are aware of the advantages offering group health insurance to workers provide. According to an October 2024 report by “Forbes”, 67% of employees named employer-covered healthcare as the most important benefit, with more than 80% of employees older than 42 years old looking for roles that include this benefit.
More than two-thirds (68%) of employers agree healthcare ranks number one out of employer benefits. That means, for businesses that don’t offer this benefit, they may lose out on top talent to competitors that do.
Whether you’re thinking about offering group health insurance to employees at a corporation, or you’re a smaller business that wants to take care of a few employees, you may be wondering the best route to go. When you work with a business health insurance brokerage like AZ Health Insurance Brokers, you can streamline the process. Your employees can get coverage more easily with less hassle.
In this guide, we explain the benefits of working with a health insurance brokerage firm when you want to offer business health insurance to employees.
Key Takeaways
- Compared to administering a group health insurance plan on your own in-house, partnering with a benefits firm can simplify the process and save you time and resources. There’s no cost to working with a brokerage firm to get group health insurance. The health insurance brokerage gets paid by the insurance company.
- One major benefit of partnering with a brokerage firm for group health insurance is that you gain an advocate who will research the best plan options and rates for your unique workforce. The firm will also be readily available to assist your business when you need it, offering potentially stronger customer service compared to working with a big brand on your own.
- A health insurance brokerage firm can learn about your business needs and create a custom health insurance plan offering based on those. You may be limited to more rigid healthcare plans when you don’t partner with a brokerage firm.
1. A Brokerage Firm Can Help You Save Money
A brokerage firm has all the latest group health insurance information to help you obtain the most competitive rates. You’ll want to avoid overpaying, so you can keep costs low while providing your employees with the health insurance benefits they want from their employer.
It’s in a health insurance broker’s best interest to give you the best options, so you can create a long-term partnership. That means, you’ll get more choices and more accommodations when selecting a health insurance plan for your team.
Compared to going to a single provider to offer health insurance, working with a broker means you get to compare all your options. You can develop your knowledge about what’s available, so you can make the most cost-effective and beneficial decision for your employees.
When new plans emerge, your broker is in your corner to alert you to all the choices you have available. They can get you set up quickly and ensure you meet the deadlines you need to. You can always be confident your broker is working on your behalf to help you save and keep your employees covered.
2. A Brokerage Firm Becomes Your Partner
One of the main advantages to working with a brokerage firm to provide business insurance is that you get a main point of contact you can always turn to with questions or concerns. If you need clarification on something, you can call them up and speak to a real person quickly. There’s no waiting on hold or scrambling to get the information you need.
As your relationship with your brokerage firm develops, they’ll get to know your business and its unique needs on a deep level. This helps them anticipate your future needs and proactively offer solutions that can help.
When you’re initially setting up employee health insurance plans, your broker can help you create a custom offering that fits your business. You can easily make adjustments to your plan whenever you need to and get in touch with your firm quickly when you need assistance.
You can think of a business health insurance brokerage firm as one of your business partners. They help you provide an in-demand service to employees, which can help you improve recruiting efforts and business retention.
Your brokerage firm can also provide employee education on new insurance plans, from benefits materials, to training. They’ll help you understand the value of the plan(s) you’re offering, so employees can make the decision that’s in their best interest.
3. A Brokerage Firm Provides a Local Option
You’re not required to work with a brokerage firm in your exact geographic location, but you do have that option. That can provide extra benefits, like:
- Being able to communicate with your business health insurance partner on local time
- Your local brokerage firm having deeper knowledge of state and local laws and regulations
- Giving your business the ability to support another local business, which bolsters your community
Each state, county and city may have different rules regarding employee health insurance. A local broker will have expert knowledge on the regulations in your business headquarters, as well as in locations throughout the country, which can be helpful if you have multiple locations and/or a workforce that frequently travels.
4. You Can Always Optimize Your Broker Partnership
Before you even select an initial broker, your business has the ability to compare brokerage firms to evaluate the best option. All group health insurance brokerages should offer a free business health insurance consultation. It can help to have several consultations with brokers you’re interested in to see what they come back with in terms of options.
The following steps can help you find an optimal group health insurance brokerage firm.
- Research brokerage firms, and come up with a list of several (at least three to five) to talk with.
- Have a free consultation with each brokerage firm. You should also come up with your own questionnaire that you send to each firm so you can compare their answers.
- Conduct follow-up interviews based on the comparisons, then select a firm.
Even after you’ve selected a broker, you can continue to explore new options each year. If you find a better offer but want to continue your partnership with your current broker, you can present new options you’ve been offered to see if any adjustments are available with your current broker.
Work With a Broker to Make Offering Employee Health Insurance Easier
Business health insurance can be a complex undertaking. You want to ensure you offer the right coverage, while also protecting your business finances. A broker makes it easy to do so.
To reiterate, by working with a business health insurance broker, you can:
- Quickly get the information and guidance you need regarding health insurance options
- Ensure compliance related to federal, state and local regulations
- Minimize total costs for providing health insurance to employees
- Get effective employee training for their health insurance benefits
- Gain a partner who can answer questions and provide clarification and updates whenever you need them
If you want to start offering health insurance to employees, or you want to compare your options, contact AZ Health Insurance Brokers for a free consultation. We work with businesses in Arizona and around the country to help them find a group health insurance plan that works for their employees and their unique business needs.
Email quotes@AZHealthInsuranceBrokers.com, call 602.617.4107 or fill out this contact form, and we’ll be in touch.
Group Health Insurance Benefits Firm FAQs
What is a health insurance brokerage?
A health insurance brokerage firm acts as an intermediary between group health insurance carriers and a business. The brokerage firm helps a business learn about all of their group health insurance options, so the business can select the best plan that fits their workforce’s needs and their budget.
Does a health insurance brokerage provide training?
Yes, you may be able to access employee education for your business from a group health insurance brokerage. A group health insurance brokerage may be able to offer everything from health insurance benefits materials, to employee training on the new group health insurance plan.
What is the difference between a health insurance agent and a health insurance broker?
A health insurance agent typically works for a single health insurance company. A health insurance broker/benefits firm may represent several companies.
Does it cost money to work with a health insurance benefits firm?
No. A business doesn’t pay anything extra to work with a benefits firm to get group health insurance. The insurance carrier pays the benefits firm a commission, so businesses can benefit from the firm’s service, without having to pay any fees.
How can you find a business health insurance brokerage firm?
If you have a business in Arizona, the AZ Health Insurance Brokers benefits firm can help you secure a group health insurance plan for your workforce. You can also use an online search engine to find brokerage firms in your area and ask for a free consultation from each to compare your options.
What should you ask a potential health insurance brokerage firm?
Some questions you can ask potential health insurance brokerage firms include: what carrier(s) do you work with? How much are plan costs? What are employee participation benefits with various plans? What kind of customer service do you provide?
