How To Shop For Health Insurance
From Ledet Training Wiki
Health insurance is a significant expense for the organization and its employees. Health insurance can run $2500 to $10,000 per employee at the time of this writing. Health insurance premiums and plans rise annually and are a significant challenge facing the finance department. Each year it's important to shop the plan early in order to avoid having to make a decision under pressure.
Insurance brokers and/or agents will present themselves as consultants and trusted advisors. Keep in mind, however, brokers/agents are highly paid representatives of the insurance industry who will collect somewhere between 7% and 25% of premiums as commissions. Brokers/agents are incentivized and paid to protect their employers, the insurance agency. If you do not shop them around, premiums will rise while the broker in charge of our account continues to collect $250 to $1000 per year per employee in commissions.
 Preparation Checklist
- Assemble and maintain a current employee census.
- Have at least 5 insurance brokers/agents in your contact system.
- Begin the process at least 3 months before renewal deadline.
 Annual steps
- Prepare a memo to employees communicating the changes. Seek feedback.