Business travel accident (BTA) insurance, also considered a voluntary benefit, protects employees and organization members when traveling for work. This type of insurance offers coverage against any financial burden that may arise if an employee is injured or even dies in a tragic accident.
The main components of BTA insurance are accidental death and dismemberment; however, some forms of BTA insurance also include medical benefits and on-premise coverage. Employers pay premiums, but payouts go directly to employees or their beneficiaries.
BTA insurance is recommended if your employees travel frequently, either for domestic or international trips. BTA insurance should even be considered if you take annual excursions with members of your team or the entire company.
Typically, companies invest in BTA insurance to cover the potential loss they would bear if an employee is injured or even dies while traveling. These professionals could include high-level officials or key position holders whose loss could severely impact the company, but BTA insurance is also recommended for all traveling employees regardless of company rank.
In specific, many travelers can benefit from this type of insurance, including:
What’s more, business travel insurance mitigates all risks associated with local or international travel. Whether it is the loss of baggage, theft, illness, or trip cancellations, BTA insurance can offer protection against all mishaps. For that reason, providing this should afford traveling employees and employers peace of mind.
Traveling for business can pose more risks than traveling for leisure, so BTA insurance addresses business travelers' unique concerns, including coverage for terrorism, kidnap and ransom, and emergency evacuation, among many others.
Every BTA insurance policy varies in coverage options, price, and additional benefits. Here are some common coverage options that business travel accident insurance includes:
Again, various policies have different limiting provisions; for instance, some BTA insurance plans may only cover air travel-related accidents. On the other hand, some BTA plans could stipulate a certain travel distance from home or travel to specific destinations before coverage kicks in.
If your business requires employees to travel frequently, you should consider BTA insurance for your employees' financial well-being and protection–not to mention to safeguard your company from unnecessary expenses. In the absence of this insurance plan, any emergency, fall, or slip accident could cost your company thousands of dollars.
BTA insurance protects your business by helping you avoid medical bills or expensive lawsuits. Of course, this type of insurance also protects your company’s greatest asset: your employees.
Because traveling is unpredictable, BTA insurance eliminates the guesswork out of your employees’ business or paid trips. This coverage also allows both the employer and employees to focus on their work and enjoy a hassle-free trip, rather than worry about possible travel risks or repercussions out of their control.
It doesn’t matter if you own a small local retail shop or a large manufacturing company, offering BTA insurance to your employees can protect your workforce–and your bottom line– against injuries and accidents.
To obtain BTA insurance, work with your business insurance broker to discuss customized options appropriate for your industry and specific needs. An experienced broker can help employers find the right coverage for their unique needs.
Search now on Mployer Advisor to see top-rated commercial insurance brokers near you.
Curious about other insurance topics? Check out the Mployer Advisor blog where you can find all your insurance questions answered.
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Voluntary benefits, also known as supplemental benefits or employee-paid benefits, are coverage options offered through an employer but paid (either in part or entirely) by workers through pretax payroll deductions. A key attraction is that they offer employees group rates that they might not qualify for individually, proving valuable for workers whose varying life circumstances could make it difficult for them to get the coverage they need from traditional benefits.
It can be hard to understand everything included in a comprehensive voluntary benefits plan, including what you can choose from and the positive impact it can have on employees and employers. For an easy-to-follow explainer, read on.
There are several different categories of voluntary benefits. At little or no cost to employers, businesses can add voluntary benefits to their coverage packages, giving employees the ability to customize and the full coverage they need.
Here are the most popular categories of voluntary benefits.
So, what do these optional offerings actually look like? Here are five real-life examples to see the positive impact voluntary benefits can have on your business as a whole.
The company is rapidly expanding and in need of talented and committed workers to join their team. Offering these relevant benefits will help this company attract potential employees and edge out other competing companies in the area. Plus, these additional options will provide new employees with protections that are excluded from basic coverage plans.
At no additional cost, the hospital boosts morale and productivity by demonstrating a vested interest in their employees’ lives outside of the workplace. The employees feel grateful to have this additional financial and emotional security, and they feel comforted knowing their pets will be well taken care of in an emergency.
The start-up is looking to hire employees who are in it for the long haul and want to communicate to potential applicants that the company is dedicated to employees' well-being. New hires can take advantage of these benefits and feel secure knowing they will be covered for circumstances, such as pregnancy, a mental health crisis, or an unexpected medical emergency.
For no additional overhead, a restaurant owner offers a broader array of benefits to their employees. These expanded coverage options make the restaurant more attractive and allow them to stand out as a competitive employer. Increased retention means that the quality of service at the restaurant can continue to grow as each employee continues to hone their expertise.
A mid-sized city’s municipal employees, who often find themselves in stressful work environments, are able to receive the support they need to care for their mental and financial well-being. This leads to a higher degree of productivity and job satisfaction and a more balanced work environment across the city.
Are you curious to see what kinds of benefits companies like yours offer? Download your custom benefit benchmarking report to see how your benefits package compares.
Curious to learn more about voluntary benefits? Read our explainer titled “Insurance 101: What are Voluntary Benefit Plans?”
Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and be sure to catch the latest episode of This Week in Benefits.
If you are shopping around for health insurance, chances are you have heard the term ‘insurance broker’ thrown around a few times. While both insurance agents and insurance brokers act as intermediaries between insurance sellers and buyers, they have different job functions.
Where an insurance agent represents one or more insurance companies, an insurance broker works directly for the client. On the other hand, brokers work for you and only you and will use their experience to provide the best insurance package for your specific needs.
When shopping around for a business insurance broker, there are a few things you should ask to ensure they are the best fit for what you are looking for. Here’s an insider’s guide of what an employer should ask an insurance broker before hiring them.
You’ll want to know more about your broker’s business to get a sense of their experience. A business insurance brokerage that has been around for a while is a great sign that they are well-versed with a lot of different business types and the issues you may face. It’s also a good idea to ask for references and to ask about what some of their success stories are. Doing this will help you see their track record, and if their previous experience aligns well with your goals.
There’s no such thing as a good answer or a bad answer to this question, but make sure to follow your gut. Your insurance broker’s job is to represent you, but if something seems off, make sure to act on it.
Insurance brokerages can be quite large, and you want to make sure that you are more than just a number to them. It is important to ask about who you will be working with, as this gives you an idea of how this firm operates. They should provide you with a dedicated account manager that serves as your only point of contact, but if they don’t, proceed with caution. An account manager makes sure that all your needs are met, and that you are treated as an individual. You will need to evaluate if a large firm or small firm is best. Who are you working with and how long have they been in the business.
You may already have some type of insurance coverage, and an experienced broker can take a look at what is working well for you and what isn’t. Based on their findings, they can create a customized plan for your needs, and fill in any coverage gaps you may be experiencing. Make sure to sit down with the broker to analyze your specific plan before you start discussing other options, as you want to make sure your concerns are heard before you enroll in a new plan.
Not all plans are created equally, so you will want to hear out all the different types of options available to you before you decide. There is no such thing as a one-size-fits-all type of insurance plan, so take your time listening to the plans they offer, and ask as many questions as possible.
Additionally, you’ll want to find out about the different types of health plans. Indemnity plans are a type of health plan that require you to pay a certain percentage of healthcare costs when the healthcare company pays the rest. There are also managed care systems, health maintenance organizations (HMOs), and preferred provider organizations (PPOs), that can add versatility to your health insurance plans. At the very least, you should expect your broker to provide a comprehensive list of health insurance terms, rates, and benefits for multiple options for your review.
Some insurance brokerages have salaried workers, whereas others rely only on commission-based sales. The health insurance company will pay the broker out of their end of the sale, so it doesn’t cost you anything to use a broker’s service. But sometimes, they add on an extra brokerage fee on top of your plan.
Asking upfront about any extra charges ensures you’re not surprised down the line.
Each brokerage handles the open enrollment process in a different way. Some may take care of enrolling for you when others require the clients to do it themselves. It is important to ask your insurance broker how they will streamline the entire process to make everything easy for you. They may even offer some tools that can make the process a bit easier for you, but again, this may take some time to learn. You want to be as prepared as possible going into open enrollment, and asking all these questions ahead of time will set you up for success.
You will need to renew your plan every single year, and some insurance brokerages have certain automatic renewal processes set up as a way to streamline the entire process. Generally speaking, a systematic renewal process will go into place about 45 to 60 days leading up to the renewal date. But it is important to be aware of your insurance brokerage’s renewal process because it is best practice to ask your broker to negotiate a better rate for you every year, and you don’t want to get enrolled in the same plan if you wanted to make a change.
It is best to know your business insurance broker’s capabilities in the following three areas:
The answers to these questions will shed light on how the brokerage works, and if its operations align with what you are seeking.
Finding the right business insurance broker for your business doesn’t have to be a daunting task. With these questions to help guide the conversation, you’ll be confident in knowing that you’ll be making the right decision for your business needs and goals. Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog.
There are many challenges to overcome when an organization is determining what employer health insurance plan is the best fit for their specific needs. However, there are professionals who can help guide you through the process, such as health insurance brokers, employer benefits advisors, and consultants. What are each of these roles and how do they differ?
To help navigate the potential advantages and pitfalls in their paths, employers and their HR departments have historically turned to outside employer health insurance brokers in order to present them with options and help advise the decision-making process. As the employer health insurance market has in many ways become increasingly complicated over the years (and because there can be a perceived conflict of interest with regard to broker commission structure), additional guidance roles have been established to fill the informational gaps.
Those roles are often labeled employer health insurance advisor/consultant or employee benefits advisors, but - as with employer health insurance brokers – their function is guiding employers toward their ideally optimized health and benefit plan coverage. Given that all of these labels accompany a similar advisory role, one of the main differences is how each may be compensated – although there is a great deal of overlap there, as well.
Traditionally, employer health insurance brokers have been the primary means through which companies have attained employer health insurance benefits for their employees. Brokers often work directly with one or more insurance providers and will typically be required at some point in the coverage process even when working with an outside advisor or consultant to build the coverage plan for the employer.
Employee benefits advisors primarily serve a complementary role to brokers in an employer’s effort to attain health insurance coverage for the company employees.
In fact, after working with a client to determine the ideal scope of coverage for that client, employee benefits advisors will then assist the client in evaluating potential brokers in order to assess which broker can provide the coverage that best fits the client’s needs.
Similar to an Employee Benefits Advisor, Employee Health Insurance Consultants serve a complementary role to brokers. In many ways, the designations of benefits advisors and consultants can be interchangeable, although such designations can be used to convey distinctions between fee structure or the depth of background analysis involved in general.
When selecting someone to help guide your organization through the procurement of employer health insurance – whether it be a broker, an employee benefits advisor, or a consultant – the key questions to ask are what relationships and specialization does this person have that may either limit or expand the options that they can present me with as a result.
Also, it is important to understand how this person will be compensated for their work and how that incentive structure may in turn affect the advice you receive, how reliable you feel that it is, and with what confidence you can assure others in your organization that you have achieved the optimum result.
Additionally, in the process of selecting a broker, employee benefits advisor, or consultant to work with, you may find it advisable to search among professionals in those fields who operate locally and/or who specialize in your industry if there are industry-specific factors that may require special consideration.
In fact, you may wish to contact such a professional to help determine if there are industry-specific considerations that you may be able to benefit from and to which you are otherwise currently unaware.
You may even want to contact the brokers, consultants, and/or employee benefits advisors who have been working with those tiresome competitors who keep poaching your talent – or perhaps you’d be better served by contacting the advisors and brokers of the competitor with such thoughtful and comprehensive benefits packages that their employees can’t seem to be poached.
Luckily, searching for the right broker, consultant, or employee benefits advisor to best serve the needs of your organization is easier than ever before through harnessing the power of public databases. Not only can you refine your search by a variety of different criteria, you will also have access to an algorithmically compiled rating system, thereby ensuring that the professional you choose to work with is verifiably capable of meeting your needs.
With such powerful tools at your disposal - despite that the employer health insurance and benefit plan market may seem murkier than ever - finding the perfect broker, consultant, or employer benefits advisor to suit your organization’s needs requires little more than a few clicks to get the process started.
Mployer Advisor helps employers find top-rated insurance brokers, advisors, and consultants. Our listing database also showcases customer reviews and feedback to help you compare and evaluate different brokers. Start your search today.
Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog or read more about insurance brokers here.
Using an insurance consultant, advisor, or broker to find and implement the right insurance policies for your company is a good way to save time and money. But how do you know when to hire one?
Some insurance brokers offer strictly brokerage services, finding the best insurance and benefits policies and assisting with renewals. Others, acting as insurance consultants or advisors, offer additional services and strategies for more complex business insurance needs.
You should hire an independent insurance consultant if you need ongoing expertise about insurance and benefit options, beyond finding and purchasing a policy.A consultant can bring your company savings, insights, and strategies that help shape your risk management and human resources plans.
In this post, we explore the main duties of an insurance consultant, the pros and cons of hiring one, and how to find a business insurance consultant that fits your needs.
At a basic level, an insurance consultant may advise on insurance policies and claims, procure employee benefits, offer plan administration and provide compliance documentation. The consultant will be involved in your plan throughout the year.
Along with administrative tasks, onboarding and billing reconciliation, insurance consultants give your company advice to control costs, manage risks and process complex claims. A consultant is particularly helpful when you need specialized insurance expertise or services.
Insurance consultants typically have these responsibilities:
The hourly or project based fees for an insurance consultant depend on the size and complexity of the services and hours provided. An insurance consultant or advisor can be an important resource and partner in adding value.
Business owners and HR professionals might wonder whether they need a broker, consultant or advisor for their insurance and benefits needs.
Since a consultant and advisor usually have the same responsibilities to clients, we can generally interchange their definitions. However, business insurance consultants and business insurance brokers have different responsibilities – primarily in the scope of their services to employers.
Historically, an insurance broker typically worked on commissions while a consultant worked for a fee. However, many brokers now include fees and many consultants charge or are capable of offsetting fees with commissions. The reason for these changes is the evolution of additional administrative services or solution partners provided by both brokers and consultants.
The more important distinction between brokers and consultants is a transactional vs. consultative relationship with your business.
A broker’s primary focus, by definition at least, is helping you buy and renew insurance and benefit products. They may offer additional services, such as enrollment assistance and administrative work, but the scope of services is more specific.
A consultant or advisor may provide those tasks associated with procurement and enrollment, but also manages your company’s collective benefits package in ways that improve your overall human resources strategy and other business objectives.
Consultants offer ongoing support and expertise into how a business operates and how benefits, finance and HR impact operations. Beyond assisting with administrative tasks, they explore options aside from policy costs that can improve financial and operational conditions within your company.
Whether a consultant, advisor, broker or agent, the quality of advice provided by your insurance representative is their most valuable asset.
A good consultant or advisor will understand which insurance policies best fit your business and will tailor coverage options to maximize protection and minimize cost. When evaluating which brokerage firm you partner with, ask yourself whether or not your team feels the value in the service they provide.
Here are some of the “pros” of hiring an insurance consultant:
Here are some of the “cons” of hiring an insurance consultant:
Independent insurance consultants and advisors can help you choose coverages and risk-management strategies that make the most sense for you.
There are about 413,000 insurance consultants and associated businesses in the U.S. as of January 2021, according to IBIS World. How do you find the independent insurance advisor that is right for your company?
When you are looking to hire a broker, consultant or advisor, you can focus on three things: what they do, how well they’ve done it, and how they get paid. Insurance buyers should compare brokers and consultants based on need, professionalism, demonstrated knowledge in insurance, understanding of your industry, transparency and fees and or commissions.
The quickest way to find qualified insurance consultants is through Mployer Advisor, a free marketplace that allows employers to compare brokers, consultants, and advisors in one place. Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and be sure to catch the latest episode of This Week in Benefits.
According to new data from Willis Tower Watson’s 2023 Salary Budget Planning Report, overall salary increases in the U.S. will rise to 4.6% in 2023. The predicted 4.6% increase is 0.4% higher than increases in 2022.
Interestingly, survey data from the new report found that 77% of companies reported being motivated to boost earnings due to inflationary pressures, whereas 68% said they were motivated by the tight job market.
What’s more, 57% of respondents hired candidates higher in the relevant salary range, while a further 76% adjusted or are considering adjusting salary ranges more aggressively, increasing ranges by 2% to 5%.
Similarly, more than two-fifths of organizations have adjusted or are considering adjusting salaries more aggressively; 90% of organizations making or considering salary increase adjustments are doing two adjustments per year, according to the report.
In addition to pay pressures, 75% of respondents noted problems with attracting and retaining talent—a figure that has nearly tripled since 2020. In fact, the tight labor market was an influencing factor in the decision of nearly seven in 10 companies (68%) to increase salary budgets.
In a release, Hatti Johannson, a Research Director of Reward Data Intelligence at Willis Towers Watson said: “As inflation continues to rise and the threat of an economic downturn looms, companies are using a range of measures to support their staff during this time. Organizations should prioritize their actions based on the needs of both employers and employees and pay close attention to market data to inform any changes.”
Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or tune in to listen to the latest episode of “This Week in Benefits.”
Negotiating the fees you pay to your business insurance broker may be possible, and is largely dependent on the size of your company, as well as the specific internal incentive policies of your insurance provider.
Anytime that fees and especially commissions are involved in business transactions, the first question that often comes to mind for the customer or client is, ‘Can those commissions and fees be reduced?'
Given that insurance is a field in which commissions and fees make up most if not all of broker compensation packages, this is a question that comes up a lot.
In many ways, buyers are almost conditioned to have this response, given that so many industries use reduced commissions and fees as one of the primary incentives to induce a potential buyer into closing the sale. But is that how it works with insurance brokers, too? Can a buyer negotiate their way to lower broker compensation?
Insurance Broker Commissions Calculator
While far, far less common of an occurrence in the world of insurance than it is in car sales, the answer is that it may be possible to negotiate for reduced fees and commissions with a broker.
The likelihood of that negotiation being successful, however, varies widely depending on a few key factors – specifically, the size of the buyer’s company, the type of fees and commissions in questions, and the policies of the provider with regard to matters of broker compensation.
Whether or not you and/or your company are ultimately successful at negotiating a lower rate for your broker’s commission and fees, there is little to no downside to inquiring about the possibility.
When evaluating potential new insurance brokers with whom you’re considering working, such a discussion can be a good way to broach the subject of the various ways and contingencies that your broker may be compensated, which is always good information to have available.
In situations where your company may have been working with the same broker for years, raising this issue may be a good way to come by a better understanding of your broker’s compensation structure if you’re not familiar with it already. Additionally, such a discussion may serve as inspiration and motivation to reassess your insurance situation in general, potentially leading to a desire to compare your broker’s and provider’s negotiation flexibility with that of other brokers and providers on the market.
In any case, if such an inquiry leads you to consider changing brokers or reevaluating and potentially refreshing your insurance policies, access Mployer Advisor's searchable database. You can find and contact brokers who meet all the criteria and qualifications most relevant to you and your business.Search Insurance Brokers Near You
Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or learn more about broker fees and comissions here.
An insurance broker can save you a lot of time but can they save money for your business, compared to going directly to insurers?
The short answer is yes. Insurance brokers get better rates by leveraging industry expertise and insurer relationships to find the right policy with proper coverage at appropriate costs.
With access to multiple insurance carriers and policy packages, independent brokers can find value in the insurance market based on your company’s specific needs.
In this post, we explain how insurance brokers get better rates and how they can make your job easier.
A good broker addresses your specific insurance and benefits needs at optimal costs by connecting you with the best insurance for each of your identified risks. This way, they are often able to get better rates on insurance policies for clients than individuals buying insurance directly from the company.
At a basic level, an insurance broker will compare the coverage of various insurers to get you rates specific to your needs. And they will save you time on administration and claims by managing your policy. But there are more ways that a broker can get better rates for your business:
Finding policies.
Making insurance decisions.
Negotiating with insurance carriers.
Good Independent insurance brokers make it easy to understand your coverage needs and pick a carrier based on coverage types, deductibles, covered risks and prices that work best for your business.
For many reasons, it is easier to work with an insurance broker than finding and purchasing policies on your own.
After all, you are not paid to be an insurance expert, and sifting through dozens of policy plans can be stressful, at best. Brokers add value by assessing your needs based on all your operations and risks, and then finding insurance plans that fit your profile.
They guide you through the buying process with professional advice, listening carefully to your needs and asking questions that lead to intelligent choices. Importantly, a good broker also helps you by breaking down insurance options into terms and conditions you can understand.
From claims management to employee benefits education, a full-service broker will provide the knowledge and detail that lets you focus on running your business.
Smart businesses have good insurance and benefits. The best way to find good insurance and benefits is through a broker, consultant, or advisor who knows what you need and provides you with significant value. But, how do you know who to hire? With seemingly endless options, you feel under pressure to choose the right one. We believe that transparency, information, and choice leads to better hiring decisions.
It's why we created Mployer Advisor, a free broker marketplace that allows employers to compare brokers, consultants, and advisors in one place.
To get started, find brokers near you to get matched with a short-list of qualified brokers.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, or check out some more insurance broker content.
As regulations and business expenses rise, so has the value employers place on advice about insurance and benefits. Insurance consultants and advisors are sought for many risk management and insurance services.
The hourly fees for an insurance consultant depend on the size and complexity of the insurance policy being taken out, along with the scope of the consultant’s services.
It is critically important to know what is included in standard fees and/or commissions for consultants, advisors, and brokers as you look for help with insurance and benefits.
In this post, we explore what it costs to hire insurance consultants and what makes these advisors valuable.
The cost of using a consultant to insure your business depends on the type of business, amount of coverage you need, optional coverage policies, and complexity of your insurance and benefits management.
A consultant’s fees, also called “intermediary fees,” are fees that insurance buyers pay consultants or brokers on top of a policy’s premium. The cost to hire an insurance consultant ranges depending on the size of your company, your operations, and complexity of the insurance policy or services provided.
Broadly speaking, commissions and fees usually fall between 10% and 25% of the base premium amount. It all depends on your state, your size, and what type of insurance you need, but average consulting fees are typically 15% of the policy premium.
Traditionally, an insurance consultant works on a fee for service, and an insurance broker works for commission based on the policy’s premium.
Consultants usually charge fees instead of, or in addition to, a commission that’s included in your premium payment. This is in the form of a direct invoice of billable hours or direct offset billable hours with commissions received.
As opposed to brokers, consultants are usually not paid commissions from the insurance company, which means they charge a consultant’s fee for services. Unless of course, the client prefers them to receive commissions and offset their billable hours or fees.
A good insurance consultant will understand coverages and policies tailored specifically to your business, and will find ways to maximize protection and minimize cost with your coverage.
Consultants should be involved with your business strategy and involved with you several times per year or as often as you need their services.
Here are key services that insurance consultants offer:
There are about 413,000 insurance consultants and associated businesses in the U.S. as of January 2021, according to IBIS World. But how do you vet an insurance consultant to find the one that is right for your company?
Insurance buyers should compare brokers and consultants based on professionalism, demonstrated knowledge in insurance, understanding of your industry, transparency and cost.
When you are looking to hire a broker, consultant or advisor, you can focus on three things: what they do, how well they’ve done it, and how they get paid. The right expert for your business will have a proven track record of helping businesses like yours solve their insurance and benefits problems.
The quickest way to vet your insurance consultant is to visit Mployer Advisor, a free broker marketplace that allows employers to compare licensed insurance consultants in every state.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog.
All business owners do their best to take good care of their valuable workers, and to provide health insurance options that benefit their employees. But it’s equally important to consider cost and the financial health of the entire company when making decisions about employer contributions to employee healthcare coverage.
In most cases, employers who do offer health insurance will pay a percentage of the fee. So how much should this employer contribution amount to, and what does it mean for your business?
On average, employers offering healthcare benefits in 2020 paid 67% towards health insurance premiums for family coverage plans, and 82% for single coverage. This average rate of contribution supports a consistently healthy, happy, and high-performing workplace for everyone on the team.
Contributions from employers can vary greatly depending on the size of your company, the type of insurance you decide to offer, and the scope of the benefits packages available to your employees. Insurance plans purchased for employee coverage are often called “group health insurance plans” or “fully-insured plans” as they typically cover all of the eligible employees and their dependents and are a covered risk through premium payment to the insurance company.
Fully-insured health plans are the most common way to organize employer-sponsored health coverage. This is how they work:
There is no law requiring employers to offer their employees health care benefits. However, the Affordable Care Act (ACA), which was passed in 2010, states that businesses employing more than fifty people must either provide affordable health insurance or pay a large fine to the IRS. The fine amounted to an annual $3,860 per employee in 2020, so while it is at the discretion of the employer whether or not they choose to offer health insurance, most do.
In addition to the ACA requirements, most employers are motivated to provide health care coverage for their employees because it demonstrates an interest in their wellbeing and possibly productivity. According to a Glassdoor survey, employees consider health insurance to be the most important benefit a business can offer. Prioritizing the needs of employees leads to a successful, productive, and happy workplace, so many employers consider their health insurance offerings essential costs.
In order to comply with the ACA guidelines, larger employers must meet the minimum standards of coverage and affordability for the employee and their dependents (the ACA does not include spouses as dependents). Small businesses, on the other hand, are not included in the ACA’s health insurance mandate, and are therefore immune to the financial penalties. Less than half of businesses with only 3 to 9 employees offer health care benefits, whereas nearly all employers with 1,000 or more workers do.
Some small businesses still elect to offer health insurance coverage as a voluntary benefit, however. An Urban Institute study done in 2016 found that 83.1% of all workers were offered health insurance through their place of work. The high cost of insurance premiums might seem prohibitive if you own a smaller business, but the benefits of offering health care coverage to your employees can be a worthwhile investment in spite of the high cost.
The cost of providing group health insurance to your employees can depend on some of these factors:
While some of these things are outside of your control, your choice of insurance carrier and which plan to offer your employees can have a big impact on your insurance overhead. Additionally, your rate of contribution will play a role in how much your company is paying each month for employee insurance. The most important thing is to combine all these factors and calculate a contribution amount that allows you to meet the needs of your employees and fits within your budget.
Offering competitive healthcare contribution rates can be a powerful factor in recruiting potential employees who are making decisions about the future of their careers. It is also a key factor in retaining top talent. Coverage and employer contributions can vary between companies depending on the size of the business, the number of employees, and the type of plans that they offer, and your business can gain an edge by offering high quality health insurance plans that will attract and retain talented, healthy, and productive workers. Providing affordable, comprehensive health care plans is beneficial for you, your employees, and your entire business as a whole. Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and learn how your employer contributions compare to your competitors here.
Health insurance in the United States is a confusing and convoluted topic. With so many options to choose from and costs to take into consideration, it can be exceedingly difficult to figure out which is the best choice for your specific situation. Point-of-service health insurance is popular for its low costs and robust wellness, but affordability can, unfortunately, come with choice restrictions. Let’s take a look at the ins and outs of point-of-service health insurance and why it might be the ideal option for you.
A point-of-service (POS) health insurance plan is a hybrid of the two most common health insurance plans: the health maintenance organization (HMO) and the preferred provider organization (PPO). HMOs offer coverage through a network of physicians under contract with the organization in exchange for a monthly or annual fee, also known as a premium; because participants are restricted to this network. They are usually required to live within a certain region to benefit from using these physicians, as premiums tend to be lower than traditional health insurance. If patients choose to go outside of this network, they are responsible for the full cost of the visit. Visits require either a low deductible or, more commonly, an inexpensive copay. In short, HMOs offer predictable fees and administrative simplicity for patients.
PPOs, on the other hand, allow participants access to a broader range of physicians within their provider network -- which generally spans a larger geographic area -- and don’t require referrals from the participant’s primary care physician (PCP) to see specialists. However, this additional access comes with higher premiums and out-of-pocket costs. Visits can either be paid through a copay or by meeting a patient’s deductible. Depending on the personal and medical needs of the patient, the flexibility of PPOs can be well worth the price.
Point-of-service health insurance plans combine features from both of these plans. Like an HMO, participants are required to choose an in-network primary care provider and can receive referrals if they’re interested in seeing any specialists. And although they aren’t exclusively restricted to using those referrals, the cost is greatly reduced if they go through their PCP. Like a PPO, they are granted access to a wider, more flexible number of physicians and specialists within their network. It is important to note that patients venturing out of their network aren’t forced to pay everything out-of-pocket, although the cost will be more than if they stayed in-network. POS plans only require the payment of a copay before an in-network visit; out-of-network visits usually feature a deductible. An HMO is limited in the funding arrangement for the employer and is based on a capitated fully insured arrangement. POS and PPO typically will provide more funding arrangement options for employers.
POS health insurance plans offer a number of benefits over HMOs and PPOs. Here are some benefits to why you may need to choose this insurance option.
Of course, point-of-service health insurance plans aren’t perfect. Because of their hybrid nature, understanding POS policies can be overwhelming to the average American; the details of coverage and costs (including what providers and services are in- and out-of-network) can be challenging to fully absorb, which can ultimately lead to a more expensive experience.
The personal circumstances of a participant can also negate the positive aspects of a POS plan. For example, if your long-term primary care provider is not in-network and they are the only doctor you see, you’ll end up paying more in the long run due to your out-of-network deductible.
Pricing can also be an issue. Although POS plan premiums tend to be around 50% cheaper than PPO plans, they can also cost as much as 50% more than HMO premiums. If you don’t understand the tradeoffs of those costs, you won’t be able to take advantage of POS insurance benefits.
The best health insurance plan depends entirely upon the needs of your employees and their family. For many, point-of-service health insurance plans can offer the right insurance coverage at the best price, eliminating excess stress that can sometimes come with high medical costs.
The best funding arrangements of the plans need to be evaluated too. This can have an impact on overall costs and risk.Download our benefits benchmarking report to compare your benefits to your competitors and to find a broker that can help address your needs. Want to discover more Mployer Advisor exclusive content? Check out our blog.
Owning and managing a business can be an unpredictable experience. Planning around the great peaks and sudden valleys of business life can be challenging, but insurance can offer a valuable safety net. Unfortunately, the wide range of insurance policies and coverage alternatives can be difficult to understand. Insurance brokers can bear this load for you, walking business owners and benefits managers alike through the costs and details in order to find the very best selection for their personal circumstances.
Insurance brokers are experts in their field; they provide vital knowledge and support for professionals trying to choose the right insurance policy for their needs in exchange for commission and or additional fees. Commissions are usually based on a percentage of the annual premium (which can vary depending on the policy and insurer) and are included in your monthly premium, paid directly to the broker from the carrier. Fees, however, are often charged for extra services and are paid directly to the broker, typically from the client.
Captive and independent agents represent an insurance company (or companies) and rely entirely on commission; this means that they have a personal incentive to direct clients toward certain insurance carriers. Insurance brokers, on the other hand, represent the individual seeking insurance. Insurance brokers may receive a commission from the insurance company, which sounds like it would make it difficult to garner trust between the broker and the client. On the contrary, the commission continues the longer clients stay with and pay for their policies; the more satisfied a client is with their policy, the longer they’ll stick with it, and the more the broker will make. As a result, client happiness is a major motivating factor for brokers.
Alternatively, some brokers may only charge a broker fee in order to make a profit on the transaction. This serves to override that personal, and financial bias entirely. The base parameter of broker fees is that they must be reasonable, clearly disclosed, and typically must be accepted with a signature.
Whether you’re interested in purchasing business insurance or expanding the benefits offered to your employees, understanding the ins and outs of your options is essential to getting the coverage you need. Insurance brokers are key to this decision. Because they know the market, they’re able to recognize the difference between a great policy and one that is simply adequate. Because they know the law, they’ll be able to protect your business from accidental exposure to serious liabilities, such as bank debt or accounts payable debt. And because they know the industry, insurance brokers are kept up-to-date on the market and the options available for clients.
Although your broker will not be able to finalize a policy transaction, they can provide important insight into a number of different and complicated policy options and help you get the process started. Overall, they will:
Ultimately, the advantages differ based on your position: if you’re a benefits manager concerned about making the right decision for your company, you can rest assured that your recommendation will provide adequate protection and support for your company; if you’re a business owner, partner or senior officer, you can save time and money by trusting an experienced professional to do the heavy lifting; and if you’re representing a medium-sized business, you can find a partner to walk you through the process without wasting your time.
The complex nature of owning and running a business puts business owners and their representatives at the top of the list to benefit from the experience and expertise offered by an insurance broker.Look for the following qualities when searching for a broker:
Knowing what you’re looking for from a policy is as important as selecting an insurance broker. While you may be overwhelmed by the various options and laborious details, you should have a base understanding of the coverage you’re interested in obtaining. Take the time to do a bit of research on your end; an insurance broker can make solid recommendations but only you are aware of the specific needs of your company.
At the end of the day, insurance brokers are there to help. Whether you’re looking for assistance understanding the technical minutiae of a certain policy or are starting your search from scratch, an insurance broker can make your journey significantly easier. Although it may seem like extra work, paying attention to broker commissions and fees can improve your comprehension of the function a broker plays and lead to a more positive overall experience.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog.
Navigating the business insurance landscape requires guidance, and an insurance broker can handle that research and process for you. But not all brokers are made the same, and some business owners wonder, “Can I change my insurance broker?”
The resounding answer is yes, you can absolutely change your insurance broker. As the insurance-buying client, you can replace the broker managing benefits and insurance for your company.
A good broker will act as an extension of your business, with deep industry expertise and an understanding of your individual needs. Switching to more knowledgeable brokers or advisers could provide a more personalized plan with similar and even lower costs. In most cases, you can also change your insurance broker while keeping the same insurance company and policy.
In this post, we discuss when you should change your insurance broker, what it costs to switch, and how to vet your new insurance broker.
More than 40% of businesses do not feel satisfied with their current broker, and 21% have changed brokers in the past three years, according to Zywave.
Insurance buyers can easily become dissatisfied with the services of typical insurance brokers, prompting them to want a change. Dissatisfaction can come in many forms, including:
At a minimum, you should be able to trust that your broker is finding appropriate coverage for your company. If your broker is not attentive, and doesn't provide valuable and specific insights to you as a client, it may be time to consider a broker change.
The best brokers will ask you thought provoking questions and continually analyze your risk profile, especially during the renewal process. However, if your broker only shows interest when annual renewals arrive, they might not be reliable during an emergency.
Moreover, your insurance advisor's relationship with insurance markets dictates their ability to have meaningful conversations and find competitive quotes. They need to know which policies and benefits best fit your organization and insurance price ranges in your industry.
Your broker should be a partner all year, not just once a year. High quality service providers should talk you through emerging risks and educate you on improved insurance coverage as it becomes available. Nearly 30% of businesses felt their broker lacked an understanding of their company or didn't have expertise in their industry, according to the Zywave survey.
If you experience any of these service problems, you should consider changing your broker. The right broker representative is out there.
Businesses might worry that switching insurance brokers could lead to increased premiums for their coverage. This is usually not the case.
In general, you can switch to any broker licensed in your state without additional fees. Plus, it's possible to switch insurance advisors without changing your current policy.
Typically all that is needed to change brokers is an effective dated broker of record letter change on your company letterhead that names the new broker as your new broker of record. This letter is sent to each of your insurance companies' representatives.
The insurance companies will then pay your existing broker commissions until the new broker is named and at that time, the new broker will start to receive the ongoing commissions and be on record to service you as a client with those insurance providers.
In some states that don’t recognize brokers and only have licensed agents, where the agent’s services provided mirror what would be considered typical broker services, this change letter may be called an Agent of Record Letter. Transfer of broker may or may not take place during renewal.
Are you looking for a second opinion on your company’s employee benefits plan? Find a broker that can provide you with a free analysis.
When you hire an insurance broker, they work directly for you–not the insurance companies.
A broker's main duty is to understand your business and find fitting insurance policies within your budget. They should also provide ongoing services to determine if and when to change policies, assist with compliance. Some may help resolve claim issues.Brokers rely on repeat business, so they are financially motivated to choose the best coverage for your company on an ongoing basis. Insurance companies also frequently offer incentives to brokers for policy renewals, so they should work hard to find satisfactory policies from the start.
Good brokers often can provide a procurement process and negotiate lower rates for clients based on their knowledge, history and relationships. But ultimately, insurance contracts are between your business and the insurance company, regardless of the broker who helps manage it. If you are dissatisfied with your broker/advisor, or you suspect they are not doing their best work to aid your business, you should explore your options for changing your representative.
There are about 413,000 insurance brokers and associated businesses in the U.S. as of January 2021, according to IBIS World. That means you have plenty of options to choose from when vetting a new insurance broker.
If you are ready for a change, you will first need to explore your options. The fastest way to find a new broker–whether or not you plan to keep your current insurer – is through Mployer Advisor's proprietary M-Score can show you how different brokers rate in terms of industry expertise, transparency and cost.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog.
Every year, open enrollment allows employees to elect or change benefit options available through their employer, including healthcare benefits, life insurance, disability benefits, and other voluntary or employee-paid benefits. But the opportunity comes just once a year, so many employers wonder if employees have options after missing the deadline.
Typically, employers do not offer health insurance after open enrollment unless the employee has a qualifying life event that allows for a special enrollment period.
For employer-sponsored group health plans, the open enrollment period varies. The window of time for your employees to make health insurance decisions may differ depending on your corporate calendar, your insurance broker, and your health insurance provider.
In this post, we discuss an employer’s role in health insurance enrollment, whether employers can offer insurance after open enrollment, and what leads to special enrollment periods.
Businesses with 50-plus employees that offer health benefits must hold an open enrollment period, according to the ACA. And most small employers also offer an open enrollment period.
Open enrollment is an annual window of time where employees can enroll in, change or cancel employee benefits elections.
During open enrollment, employees can view and make annual elections for insurance and benefit plans that your business offers, such as health, vision, dental, life, and disability insurance plans. They can also make election and amount changes to health savings account (HSA) and flexible spending account (FSA) plans.
These changes could include switching health insurance plans, dropping certain types of coverage, adding dependents, or enrolling in benefits for the first time. Importantly, open enrollment allows your employees to consider the different available health plans you make available, with varying premiums, deductibles, copays, and coverage limits.
Premium rates are reassessed at the renewal date and then reflected in open enrollment as well, with health plan options and prices often changing for the coming benefit year. You can work with your insurance broker or benefits provider to find better and budget-friendly plans, or you can keep the plans you have. In addition, a broker will assist you with setting the appropriate employee premium contribution level.
Before and during enrollment, human resources teams should make sure employees know how much they will contribute to their plan each pay period. And, employees should be well aware of out-of-pocket expenses they may need to pay for healthcare. Your insurance broker or benefits provider can help determine what your employees need to know and educate them on health insurance options.
Open enrollment occurs once per year and typically lasts for a few weeks. Most businesses schedule open enrollment to end a few weeks before they must submit benefits forms to carriers. For calendar-year benefit plans starting Jan. 1, employers tend to hold open enrollment 30-60 days before the new year.
Open enrollment for the ACA marketplace happens near the end of the year, but employer-sponsored plans can have different plan year dates and enrollment periods.
The period usually occurs in the fall, but employers have the flexibility so it does not necessarily have to correspond with ACA enrollment or the calendar year.
Open enrollment is also not required to be a certain length of time. However, most small employers have two- to four-week enrollment periods about one to three months prior to policy renewal. Coverage begins at a specified date after open enrollment and usually runs for a full year.
For the best service from your broker or insurance agent, you may want to plan your open enrollment period off-peak. For example, you could hold open enrollment in the spring for health insurance coverage that runs from July 1 to June 30 next year. In addition, you will need to decide if the enrollment will be active or passive. An active enrollment is one where the employee must make a selection for each type of coverage versus passive includes a no change option.
Typically, this open enrollment period is the only time employees can enroll in health benefits or change their coverage.
If an employee misses your company's health insurance open enrollment period and has not carried over their previous plan, they may not be able to do so until the following year.
Typically, employers cannot offer health insurance to employees outside of open enrollment. Once the business’s open enrollment window closes, employees usually have to wait a year to enroll or make changes.
If an employee is covered under another plan, but that coverage is lost, they can enroll in your plan immediately. Generally, employees have 30 days after they lose the other coverage.
If an employee has a qualifying life event, it could trigger a special enrollment period (SEP) for them.
Depending on the size of your business and how many employees are covered, you could be subject to ACA fines if your workers miss the open enrollment deadline. In addition, prior to ACA, IRS Section 125 requires an annual election for benefits that include pretax deductions. Missing this deadline means your employees could be unable to acquire employer-run health insurance for a year, unless they sign a waiver stating they are covered under another plan, such as Medicaid. Exceptions are–for the most part–prohibited by the terms of the health insurance agreement. Companies typically have mandatory enrollment, even if it includes an employee declining coverage.
However, there are a few exceptions.
Under specific life-changing circumstances, employees can enroll or change their benefits or insurance plans outside of open enrollment.
If an employee has a qualifying life event, they can be given more time to add, remove or cancel coverage through a special enrollment period. A special enrollment period is a window (usually 60 days) during which you can enroll in health insurance plans, even if it falls outside your company’s open enrollment period.
There are three main categories of qualifying events:
Loss of health coverage is a qualifying life event and can warrant a special enrollment period. Examples include losing existing health insurance coverage, losing Medicaid eligibility, or expiring COBRA coverage.
Qualifying life events involving changes in household and residence include (but are not limited to):
During special enrollment periods, employees generally have the same options as they would during open enrollment. If nothing triggers a special enrollment period, employees usually have to wait until the next open enrollment period to sign up for health insurance.
Working with a qualified insurance broker can help walk you through open enrollment to make sure nobody falls through the gaps or misses an enrollment opportunity.
Looking for more exclusive content? Check out the latest on the Mployer Advisor blog, or read on for an explainer on the benefits of diversity in the workplace.
Using a broker, consultant, or advisor to find and implement insurance plans for your company is an easy way to save time and money. But many business owners and human resource professionals find it hard to differentiate between a broker, consultant, or advisor when it comes to insurance and employee benefits.
The main differences between an insurance broker and a consultant/advisor are their fee structures and how involved they are with a client beyond insurance purchases and renewals.
Importantly, the broker, consultant, or advisor gets to choose their title – there is no regulatory or licensing distinction. Since a consultant and advisor usually have the same responsibilities to clients, we can generally interchange their definitions.
In this post, we’ll explain the similarities and differences between an insurance broker and an insurance consultant or advisor. Some states also have an Insurance Counselor license which typically applies to Life Insurance advising.
Both brokers and consultants work with multiple insurance companies, so they tend to have broad options for policy offerings and key benefits. However, business insurance consultants and business insurance brokers do have different responsibilities – primarily in the scope of services they offer to employers.
Traditionally, the difference is that a consultant charges a fee for service, while a broker works on commission. Some brokers are paid solely through commissions for policy purchases and renewals, and some include other fees for additional services. Consultants charge fees and sometimes may offset fees directly with commissions if the client chooses to have the insurer pay the consultant versus paying billable hours or fees directly.
The more important distinction between brokers and consultants is a transactional vs. consultative relationship with your business.
An employee benefit broker’s primary focus is helping you buy and renew insurance and benefit products.
The term “broker,” strictly by definition, historically means “shopping for coverage.” They re-evaluate insurance plans/renewals every year and facilitate insurance one year at a time. Meanwhile, “consultant” and “advisor” describe benefits professionals that offer additional strategic or advisory services for their clients.
A business insurance consultant handles procurement and enrollment, but also manages your company’s collective benefits package in ways that improve your overall human resources strategy and other business objectives.
Many modern insurance broker’s services have evolved and work more like consultants/advisors, working with you throughout the year. Thus, the difference isn’t always straight forward. It is always in your best interest to define the relationship and expectations of the services expected.
Business owners and HR managers are focused elsewhere without the time to become experts in insurance policies and employee benefits. For most, using an insurance consultant, advisor or broker will save time and total costs compared to going it alone.
A good consultant will understand coverages and policies as they relate specifically to your business, and will find ways to tailor your coverage, maximizing protection and minimizing cost. To earn their fees, consultants should be involved in your plan several times per year – not just during enrollment and renewals.
Put another way, you should use an insurance consultant when you need ongoing expertise about insurance and benefit options, beyond finding and purchasing a policy. A consultant can bring your company a vision and new ideas that shape a strategic HR plan for the future. This may also include actuarial attestation for specific programs.
A consultant is particularly useful when your company’s operations require specialized expertise.
There are about 413,000 insurance consultants, brokers and associated businesses in the U.S. as of January 2021, according to IBIS World. But how do you find the right one?
When you look for a broker, consultant or advisor, ignore the title. Focus instead on what they do, how well they’ve done it, and how they get paid.
There’s a quick way to find valuable information about brokers in your state. Start your broker search at Mployer Advisor, a free broker marketplace that allows employers to compare brokers, consultants, and advisors in one place, and download our benefits benchmarking report to see how your benefits compare to your competitors.
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