What To Do When Choosing An Agent Or Broker For Group Health Insurance

By Insurance.com Posted : 09/16/2004

The most popular benefit offered by U.S. employers is employee health insurance or group health insurance.

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When deciding on group health insurance for your company, it's a good idea to consider working with a health insurance agent or a health insurance broker. Though similar in definition, an agent differs from a broker in that an agent represents the insurance company, whereas a broker generally represents the policyholder or insured person. Rest assured though, both agents and brokers can help assist you in choosing an insurance plan(s), and in the long run, they can also help if issues arise with the health insurance you purchased. But before calling an insurance agent or insurance broker, you should do your homework and research a little bit about the health insurance marketplace in your area. This way, you are better able to choose someone who will be the best fit for your business.

Do your homework
There are a few steps you should take before you go to an insurance agency to purchase group health insurance such as:

  1. Make a summary plan description
  2. Consider how much of the premium the employee will pay, and how much your company will pay
  3. Recognize what features you feel should be standard
  4. Take into account how many employees you have


When making a summary plan description, write down what you and your employees would like to have in a health insurance plan. Be sure to write out what standard features you feel are most important first, and then continue with the add-ons. In doing this, the agent or broker will be able to give you base quotes on how much your basic features will cost, and then you can go from there if you would like to add-on more group health insurance benefits.

Another decision you need to make is to decide on how much of the premium the employee will cover, and how much the company will pay. You may choose a standard flat fee that each employee covers, or decide to split the cost of the premium. Also, it would be a good idea to lay out what health insurance features you feel are standard, and which features your feel aren't necessary. For example, if most of your employees are over 50, it is unlikely they will be having children, so having maternity coverage on your plan won't be necessary. It's looking at situations like these that may help you save on your group health insurance plan.

If your business is small and just starting out, it may be more beneficial for you to consider a less-expensive health insurance plan. Even though this is a temporary solution, you may forego getting an HMO or PPO. You can wait to see how much the business expands and what the demand for coverage is, before you decide on what kind of full-coverage health insurance plan you want to get your company.

If you are interested in getting a group health insurance coverage quote for your business, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class health insurance providers - helping find the best health insurance coverage for you and your company.

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