3 tips from insurance brokers to help employers find the right health plan

According to the Bureau of Labor Statistics, an estimated 75% of private-industry workers have access to health insurance through their employers, with 65% of these workers choosing to participate in their employer's plans. 

Unfortunately, many companies struggle to provide this workplace benefit. Sixty-five percent of small employers report that costs are an obstacle, and 12 percent cite finding the correct plan as their biggest challenge.

A small business health insurance broker helps companies identify and select plans that will best suit their workers. To help companies find the right plans, we've consulted some brokers to get their best advice on choosing the right coverage. Here's what they had to say. 

1. Find a small business health insurance broker you can trust

Every health insurance broker we talked to shared the same big piece of advice for businesses: get the right professional help to find coverage. 

"The number one tip is to work with a broker they know, respect, and trust," advised Ryan Calloway of AZ Health Insurance Brokers. "Groups should not have the responsibility to go out and shop. The group space is very complex and there tends to be changes from year to year. A good broker acts as a fiduciary and will help navigate the market based on what's best for the group."

Companies must find the right broker to help them select their coverage options. To do this, they must understand the steps involved in becoming an insurance broker and look for a professional with the appropriate training and qualifications. 

When choosing a small business insurance broker to help them find group health insurance plans, companies should:

• Look for a broker who is licensed and in good standing. Check the state's Department of Insurance website to confirm the broker's license and credentials are current. 

• Ask for referrals. Many companies find well-qualified brokers by asking for referrals from other businesses who have been happy with their services. 

• Read reviews and ask for references. Client testimonials from companies that have worked with the broker for a long time can help you gain insight into the broker's performance track record, communication skills, reliability, and experience within the industry. 

• Understand the fee structure. Brokers typically don't charge businesses; instead, they get a commission when they sell a policy. However, since some brokers charge fees for services like in-person customer support or exploring supplemental plans, it's important to confirm the costs up front. 

• Ask about past experience. Make sure the broker specializes in health insurance policies, has experience in your state, and has worked with companies with similar needs. 

Finding the right broker is crucial to finding the right plan, so this is where companies should focus their energies to help get their employees the best coverage. 

2. Compare multiple coverage options

The next key piece of advice is to explore all of the available options, with a focus on both cost and value. "Find a quality broker and shop it," advised Donald C. Kirkendall, CBC and the insurance man at AffordableONE Insurance. 

Companies buying coverage should conduct a needs assessment to determine what kinds of plans to offer based on employee healthcare needs and budget constraints. Armed with this information, brokers will explore options offered by a variety of insurance carriers and present the business with multiple different plan options. 

When comparing policies, companies should look at factors including:

• Coverage levels: How much healthcare does each policy cover?

• Features: What are the terms and conditions of each plan?

• Costs: What are the premiums for each different plan option?

A small business health insurance broker may be able to negotiate the policy terms and premiums with different carriers to get the right coverage at the best price. 

3. Offer choices to employees 

Finally, the last key piece of advice for finding the right coverage is to offer employees the flexibility they need to find the coverage that works for them. 

"One of the biggest tips I give people for group health coverage for their employees is to give your employees options," advised Dan Hardle, Chief Executive Officer at Medicare Advocates. "After working for 13+ years selling and managing health insurance, I understand that there is no "one size fits all" plan. Each plan offers a different value and helps employees get the coverage they need."

Hardle suggested offering both high-deductible and low-deductible health plans so that all workers can find something that meets their needs. "When you give employees the ability to choose a better fit for them, it ends up being a better deal for you as well. In my experience, employees are even happier cost-sharing some of the premium costs, as it allows me to offer them the choice between these plans."

Consider offering an Individual Coverage Health Reimbursement Arrangement

For companies that want to simplify the employee benefits process while offering the ultimate flexibility to their staff, offering an Individual Coverage Health Reimbursement Arrangement can also be a great option.

An ICHRA is an alternative to the traditional arrangement where companies offer participation in a group plan the business has selected.  With an ICHRA, employers provide non-taxed reimbursements to employees who purchase qualifying health insurance on the individual market.

Employees can shop for a plan that works for them, and employer reimbursements can be used to pay those premiums or cover other qualifying medical expenses such as copays, deductibles, or even the costs of prescription medications or medical devices. 

ICHRAs are simple for employers to offer since they don't have to research and choose specific health insurance plans. It's just a matter of setting a budget. Brokers can offer an ICHRA paired with employee-selected health insurance as an option for companies, or a business can set a budget for health insurance subsidies and work with a service like Thatch to administer their ICHRA. 

If your company already has an insurance broker, Thatch can work with them to help your business find a better way to do healthcare. If you don't have a broker, Thatch can be your broker of record, taking care of everything required for your team to get coverage that meets their needs. Visit Thatch today to see a demo and find out how easy offering coverage can be with the right support.