How to Hire a Health-Insurance Broker or Agent

Insurance agents and brokers can help a business owner sort through an array of available health insurance plans to find one that fits the needs and budget of a company.
While some people research their options on their own, many others find the process daunting and can benefit from some professional assistance. Deciding who will help you choose an insurance plan is an important first step.
Here’s a rundown of points to consider before hiring an insurance professional.
Choose a professional with a good reputation in the industry, so ask for referrals from companies similar to yours in size and scope. Check references, as well as licenses and registrations. You can check a broker or agent’s disciplinary record by calling your state insurance commissioner’s consumer hotline. Ask if they’ve ever been sued by a client.
Services vary from one insurance professional to another — there’s no standard level, type or number to look for. Make sure you’ll get the kind of support your company may need, such as nontraditional work hours or different language on service help lines.
Learn whether he or she is knowledgeable about the type of products you need. Ask for examples of those that he or she has experience in. Some consultants focus solely on retirement plans, while some don’t work with them at all.
Find out whether you’d have a dedicated account manager. With larger organizations, you may want a contact who is familiar with your company to avoid having to work with multiple representatives, retelling your story repeatedly. A professional operating on his own may not offer the level of service of a larger firm with someone focused on your account.
It’s a good idea to ask how renewals are handled. You’ll want to avoid being surprised by a renewal notice at the last minute. Ideally, the insurance renewal process would start 90 to 120 days before the renewal date with a strategic-planning meeting to set goals for the year.
At Hafetz & Associates, our brokers are independent, selling for multiple companies, and typically can provide many options and a broad view of the marketplace.
Our brokers will work with you to evaluate the major insurance carriers in your area on plan designs and cost. Although cost considerations are critically important given today’s business climate, we don’t just look for just the lowest premiums.
We also consider among other things the breadth of the network to make sure all the employees have access to in-network physicians, and whether the carriers have good relationships with physicians.
—Submitted by Paul Eisenstein of Hafetz and Associates, 609 New Road, Linwood