Broker Compensation Disclosure Requirements

Signed into law in late 2020, the Consolidated Appropriations Act contained a provision that required health insurance brokers, also referred to as covered service providers, to disclose both direct compensation and indirect compensation they receive. 

For service arrangements entered into or renewed on or after December 27, 2021, any broker, adviser, or consultant must provide the plan fiduciary a Services & Compensation Statement that describes the services to be provided to the plan. The Statement must also disclose all direct and indirect compensation, including compensation paid to any affiliates and subcontractors, who expect to receive $1,000 or more in direct or indirect compensation.

Virtual Benefits Enrollment

The ability to enroll and administer employee benefits virtually has reached a record high with the impact of COVID-19. While virtual benefits fairs present many challenges, such as educating employees on their options and helping them sign up for benefits, it's important that companies have the proper tools available to ensure successful enrollment. By combining existing technology with a process to assist those more unsure or uneasy using technology you can develop a strategy that aligns with every segment of your employees.

Most employers we encounter are offering some type of Employee paid benefits like Accident, Critical Illness, Disability, Hospital Indemnity, etc. These products are typically offered by an Insurance Carrier Representative or Enrollment Firm which causes a variety of problems during open enrollment.

Specifically, does the broker fee agreement align with the success of your health insurance offering, and help you hold your costs down while allowing you to successfully attract and hire the people you need to grow your company?

As a manufacturer, you likely have a procurement strategy for your raw material, overseen by a sourcing or supply chain manager who ensures efficient and effective use of that material, with the goal of increasing or at a minimum maintaining your profit margins.