How To Shop Health Insurance (Part 1)

Businesses shop for health insurance in two basic ways. Some Owners and HR Managers use a single agent strategy; others prefer a dual agent approach. Both strategies can lower costs and increase benefits. Unfortunately, most businesses shop group health insurance incorrectly.

Managers using the single agent approach allow one agent the authority to negotiate with various insurance companies. Do not undermine your group health insurance agent by allowing another agent to quote your health insurance. Commonly, the second agent returns with conflicting data from the insurance company’s underwriter. The single agent approach hinges on trusting your agent, but prudent managers verify health insurance recommendations.

If you want to check your agent’s recommendations wait until he returns the quote. The agent should be transparent and, upon request, make available your working file. The working file consists of all documents regarding your request for proposal and subsequent proposals. You can hire an employee benefits consultant to review the working file for $100 to $150 per hour. The consultant should take under two hours to confirm that your data was quoted and presented properly. The consultant could save you 10’s of thousands of dollars if your agent has taken advantage of you.