How to tell whether your employee benefits broker is doing a good job

A benefits broker earning their compensation should be able to show you, without being asked twice, what they did with your renewal, what they took to market, what they negotiated, and what they recommended against. If your broker appears once a year with a renewal spreadsheet and no alternatives, you are paying for a transaction rather than for advice.

4J Insurance Brokerage is an independent employee benefits and commercial insurance brokerage in Frisco, Texas, serving North Texas employers with approximately 50 to 200 employees. This page is the checklist we use ourselves.

The eleven things to ask for, in the order they matter

Renewal preparation. Did the broker start work on your renewal 90 to 120 days out, or did the renewal letter arrive and get forwarded to you?
Market analysis. Which carriers were approached, which declined, and why. A broker who marketed nothing should say so and explain the reasoning.
Funding analysis. Was the current funding structure tested against alternatives, or assumed to still fit?
Network analysis. Was a disruption check run against your employees’ actual providers and prescriptions before any plan change was recommended?
Claims and utilization review. For groups where claims data is available, was it read?
Contribution strategy. Was employer and employee cost sharing modeled, or carried forward unchanged?
Compliance coordination. Affordable Care Act reporting, Employee Retirement Income Security Act plan documents, Consolidated Omnibus Budget Reconciliation Act administration, and required notices.
Employee communication. Did anyone help your team understand what changed?
Benefits administration and technology. Is enrollment supported, or does it land on your desk?
Claims advocacy. When an employee has a claim problem, does the broker intervene?
Stewardship and planning. Is there a written year-end review and a plan for next year?

The warning signs

The renewal arrives with one option.
You cannot get a written summary of what was marketed.
Nobody has asked for your census in two years.
Compliance questions get answered with “check with your attorney” and nothing else.
You hear from the broker in the renewal month and at no other time.

What good looks like in practice

A broker who is doing the job should be able to hand you a short written stewardship summary each year covering what was marketed, what was recommended, what was declined and why, what compliance items were addressed, and what is planned for the coming year. That document is the simplest test available. Ask for last year’s copy.

If you would rather have someone read your program against this list, that is what a group health renewal review does. The wider practice is described on our group health insurance page.

Request a Benefits Program Second Opinion

Benefits broker performance FAQ

Is it normal to only hear from a benefits broker at renewal?

It is common, and it is a reasonable thing to ask about. Service expectations may vary by broker and by the size of the group.

Can I ask my broker what they are paid?

Yes. Compensation arrangements can generally be requested, and disclosure requirements may apply depending on the arrangement and plan type.

Does changing brokers mean changing my health plan?

Not necessarily. Changing brokers and changing carriers are separate decisions.

This page is educational and does not constitute legal, tax or benefits advice. Employer-specific questions may require review by benefits, tax, legal, payroll or compliance professionals. 4J Insurance Brokerage is a broker and does not underwrite risk or issue policies.