The Ultimate List of Questions To Ask a Benefits Broker

Benefit packages are a key part of employee compensation in the US. In addition to salaries, benefit packages give employers other ways to attract and retain top employees. They can include medical insurance, vision and dental coverage, life insurance, retirement plans, paid time off, bonuses, and much more. 

To help employers craft the right benefits package for their organization, they’ll often turn to benefits brokers. In this post, we’ll explain what a benefits broker does and how employers can ask the right questions to ensure they’re getting the most out of their services. 

What Is a Benefits Broker? 

An employee benefits broker is a licensed insurance professional who helps employers create benefits packages tailored to their organization. They essentially act as intermediaries between employers and various insurance companies, shopping around to find the best plans for the benefits package. 

Why Should You Work With a Benefits Broker? 

For an employer, it can be incredibly overwhelming trying to sift through all the various insurance companies to make an informed decision that’s good for their employees. That’s where benefits brokers come in. Benefits brokers can help the process by: 

• Providing actionable advice for choosing insurance. Benefits brokers will often have a deeper understanding of the range of insurance plans out there, and can provide helpful information and tips to narrow down the choices. 
• Finding ways to lower costs. Benefits brokers can pinpoint ways to reduce total premiums and find strategies that will reduce costs in the long run. 
• Assessing your current benefits package. By reviewing your current plan, benefits brokers can identify which areas need to change. This can be because of shifting demographics, utilization rates for specific benefits, or potential cost savings. Additionally, they can also negotiate new contracts with benefits providers to secure better deals for your organization. 
• Helping you meet compliance requirements. It can be difficult to stay on top of all the legal requirements you need to follow. A benefits broker will help keep you updated on the latest updates and ensure your policies and procedures are compliant. 
• Supporting employees directly. Employees will inevitably have questions about their benefits. A benefits broker can help answer these questions directly, as well as share resources and tools to help employees make more informed choices. 
• Acting as an intermediary to resolve issues. Since benefits brokers have a relationship with insurance providers, they can also step in to help resolve any issues related to claims. 

How To Choose the Best Benefits Broker for You

Benefits brokers can be very useful in helping you create your benefits package, but how do you actually find one to move forward with? Here are a few things to consider: 

• Take a look at what organizations the broker has worked with in the past — if they’re of a similar size or industry, that experience could be helpful 
• You can also directly ask business owners you trust for a list of recommended brokers they’ve worked with
• Screen them thoroughly — hiring a broker should be like hiring an employee, so be prepared with questions (see below!) to properly vet them 
• To that end, make sure you have time to shop around for brokers so that you can interview each of them and ensure you have the right fit
• See what assistance they provide, especially around open enrollment and compliance, which are crucial aspects that can have big ramifications if not handled properly 
• Understand their cost structure and approach to plan strategy, ensuring they align with your budget and goals 

The Top Questions You Should Ask a Benefits Broker

To help you find the right benefits broker for your organization, we’ve compiled some of the top questions you’ll want to ask. 

• How will you help me lower healthcare costs?

It’s critical for employers to understand and set expected outcomes from their brokers. What kind of relationships do they already have with insurers and how do they plan to leverage those relationships to secure lower costs? Do they have other strategies they can suggest to find cost-saving opportunities without sacrificing the quality of the benefits package? 

• How can I ensure you’ll advise in my organization’s best interest?

You’ll want to get an idea of their approach and processes when creating a benefits package. How well do they get to know the employer and its employees’ needs? Do they have examples of how they’ve personalized plans for other organizations? 

• What’s your benefits communication plan?

There’s often a ton of information regarding benefits, especially if previous benefits need to be updated. How do they choose what method to communicate crucial information? What’s their process or strategy when issues arise and how proactive are they?

• What’s your approach to employee engagement and education?

With employees specifically, how does the broker approach educating them on important updates to the benefits package? Do they break the information down in a way so that employees don’t get overwhelmed or miss key details? How do they ensure employees stay engaged and informed? 

• How will you help me streamline my open enrollment process?

Does the broker have a plan or strategy to get ahead of the open enrollment process? Do they factor workforce changes or what employees value into their strategy? How do they communicate open enrollment updates and are they available to answer questions? 

• How will you help me keep up with HR regulations and compliance? 

Regulations and compliance requirements are constantly evolving. Make sure the broker you’re choosing has a plan of action to stay on top of the latest developments and inform you as soon as possible. You’ll need to be aware of changes, but ideally, the broker can help with mandatory filings. 

• Can you help me review IRS guidelines and make sure we’re tax-compliant? 

Similar to the HR regulations, you’ll also want to make sure the broker is aware of the latest updates to tax guidelines so they can give you sound advice. 

• Do you have in-house compliance resources to help us deal with the litany of compliance issues?

In case you need to find an answer to a compliance question without waiting for the broker to get back to you, you’ll want to see if they have a resource library you can access. Compliance is crucial, so the more people in your organization who can stay informed, the better.  

• What are your ideas about how to attract and retain employees?

There are pretty standard benefits that most employers include in their benefits packages. What creative or personalized ideas can the broker bring to the table to help you catch the attention of top candidates? Do they have a finger on the pulse of what other businesses in the same industry have been offering their employees? 

• Do you (or any of your in-house staff) have any underwriting expertise?

Insurance underwriting helps determine premiums, risk levels, and how much coverage patients receive. See if the broker has any experience with underwriting to help you navigate any issues or questions that arise when creating the benefits package. 

• Who exactly will be working on the account? How many other accounts do you handle?

Is the person you’re speaking with the one who’ll be handling your account? Will there be other team members? Make sure you vet everyone who will be working with you and that they’re not stretching themselves too thin by working on too many other accounts, or else they won’t be able to give your organization the proper attention. 

• Do you offer online benefits administration?

An online benefits administration system can streamline the enrollment process, reduce errors, provide employers with real-time data and insights, add more flexibility, eliminate paper waste, and more. Check with the broker to see if they offer an online benefits administration system and what support they can provide. 

• What experience do you have with self-funding and reference-based pricing?

Self-funding and reference-based pricing are options that you may want to consider for your organization. If so, you’ll want to see if the broker has any experience and insights with these health insurance strategies. 

• What experience do you have with pharmacy benefit managers (PBMs)?

A pharmacy benefit manager plays a key role in determining the prescription drug list and managing medication costs. Ask the benefits broker for their thoughts on discount-based vs. cost-based pricing — their answer may have a significant impact on your overall plan costs. See if they have experience with cost-based models and, if lowering plan costs is a priority for you, see if they’d explore that as one of their strategies when creating your organization’s benefits package. 

• What kind of support do you offer when it comes to wellness plans?

Wellness programs can help employees lead healthier lifestyles and improve education regarding their health and fitness. In turn, this can lead to fewer claims, especially for chronic diseases that can be prevented with lifestyle changes. See what options and resources the broker can offer here. 

• With so many benefits vendors available, how will you help us find the right solutions for our employees’ unique needs?

How does the benefits broker assess vendors? How do they factor in your organization’s and employees’ needs when making their recommendations? Selecting the right vendors can help lower costs and improve employee satisfaction, so make sure they’re giving proper thought to the vendors they suggest. 

• What’s your annual benefits renewal and negotiation process?

With so many other things to worry about in your organization, the last thing you need with your benefits broker is a drawn-out and frustrating renewal process. It’s important to understand how they handle annual benefits renewal, including timelines and expectations. 

• What is your number one advantage in the marketplace to gain the trust of new employer clients? 

You should be shopping around for benefits brokers, so this question is a good one to ask to help you compare each broker’s differentiating qualities. 

• What would your onboarding process be for a new client, including the proposed timeline and milestones?

Your benefits broker needs to really understand your business if they’re going to provide useful insights and advice for your benefits package. Use this question to suss out whether they’d take the time to get to know your processes, goals, and employee needs. You can also assess whether the timelines match up with your internal plans. 

What’s Next? 

These questions should help you narrow down your list of benefits brokers so you can find the perfect one for your organization. Then, once you’ve selected your benefits broker, you can solidify the contract and get started with onboarding! 

But this is only the start of the benefits package creation process. A huge portion of your health plan costs will come from prescription drugs, so you’ll want to evaluate your PBMs next to assess if they’re right for your organization. As you do, be sure to explore SmithRx for a transparent PBM that’s focused on helping you find the lowest drug costs — every time.