How to Choose a Group Medical Insurance Plan: The Forgotten Factor

You've met with three or four insurance brokers, andYour employees should be able to call your broker's
all have given you spreadsheets presenting proposalsoffice with claims problems and benefit questions,
from a number of insurance carriers vying for yourand talk to someone who is knowledgeable and will
company's business. Most of these spreadsheets,not leave them hanging. Your broker's office should
from all the brokers you met with, show basically thebe a dependable resource to you and your
same selection of programs.employees.
You go through each plan to understand it as bestThe broker will talk to the insurance company.
you can. You even run it by some other employeesYour broker should do most or all of the
to get their input. Finally, you make a decision, call thecommunicating with the insurance company for all
broker to give him the good news, and away you go.claims and billing issues. Again, you and your
The broker? Well, since all the brokers showedemployees are NOT insurance experts. Your broker's
basically the same plans, you call the broker that alsooffice should be.
sold you the property and casualty insurance to yourThe broker will become a trusted advisor.
firm.A good broker will become an extension of the
What have you forgotten?human resources efforts of your company. His office
It's a problem.will, by keeping your benefits program efficient and
Your new group medical insurance plan has been inwell-serviced, help you hire and keep the best
force for some time now. Employees come to youemployees. Even more than your accountant and
at least several times a week with claims problems,attorney, he and his support staff will become
benefit questions and complaints.trusted advisors.
Your job is NOT to be an insurance expert, so youHow can you choose a good broker?
call the broker that sold you the plan, looking for help.Make sure that your broker is a specialist in
When he calls you back a couple of days after youemployee benefits. This will not be the broker that
left him a voice mail, he says he will check into yourhandles your property insurance or personal financial
various questions and get back with you.planning.
The broker calls you back a week later, with someAsk for a list of at least 15 of his local business
garbled answers that really don't address the issues.clients that have used his firm for at least five years,
You end up having your assistant call the insuranceand call these referrals asking what type of job the
company's toll-free number, where she gets passedbroker's office has done for them. If the broker
around to three different extensions, still not gettingbalks at this, or only can give you a few referrals,
answers.move on.
The forgotten factorMake sure the broker has a knowledgeable and
Go back to the beginning. You spent a lot of timeexperienced staff. The broker is only one person,
trying to choose the right group insurance plan. Butand he will often be out of the office. You should ask
you really didn't put much consideration into whichto talk to the person in the broker's office who will
broker to write the program with. Broker selectionbe handling the day-to-day servicing of your plan.
was the forgotten factor.Talk to that person on the telephone and make sure
Choosing a good broker is at least as important ashe or she seems competent and will be comfortable
which plan of insurance you select.to work with.
What should an employee benefits broker provide toThe broker is often the forgotten factor. And don't
you?you forget it.
The broker will talk to your employees.