Bigger is not always better when it comes to insurance brokers

Have you ever had a health insurance broker tell you that they can get you better insurance rates because they are bigger than your current broker?

Many employers have been told this lie at some point by some broker (hopefully not your own).

Watch the video below where I debunk this myth and explain what would happen if this were the case

Transcript

Today's topic: Can my broker give me better health insurance rates than another broker? If you've been told that your broker can get you better health insurance rates because they are bigger and they have more business with that carrier You Are Not Alone. You've also been lied too. Here's the deal. The insurance carriers are not allowed to provide different quotes to different Brokers. It's the same data as used to produce that quote. Think about what would happen if the opposite were true. The biggest Brokers will always have the best rates virtually eliminating their competition. Now, this doesn't prevent a broker from showing a different plan option showing a different carrier or showing it alternative funding arrangement when the other broker isn't that it also doesn't prevent a broker from providing updated data and getting a better quote because that data improved the overall picture maybe a high-cost claimant is no longer on the plan providing that update should improve the quote but if the other broker isn't providing that same update they're not getting me updated quote. The only brokers that are getting better quotes are the ones that are putting in the work to show different options. My advice is don't waste your time with Brokers. They're telling you they can get better rates because of their size if they're doing the exact same thing as another broker they're getting the exact same results.

About the Author

Mike Kroupa, Self-Funding Insurance Expert

I grew up in a house that was constantly under construction and the experience helped me uncover one of my passions, remodeling. After running a successful remodeling business with my brother during college, I decided I wanted to keep this as a hobby. Instead, I took my advisor’s recommendation and started down the actuarial path, which ultimately led me to insurance.

Since then, I have focused my career teaching employers how to better manage their health insurance plans. I found myself frustrated year after year of doing the same thing because it didn’t feel like I was making an impact. Healthcare costs were continuing to increase, and it felt like the only options employers were left with was increasing deductibles, increasing contributions, and switching carriers.

There was a turning point for me in 2020 as I found Health Rosetta, an ecosystem for scaling adoption of practical fixes to our health care system. As my clients started adopting these fixes, I found myself getting passionate about what I was doing for the first time. Then I realized my hobby of remodeling was driving the passion because I was remodeling health plans. Even better, I was having an impact because patients (employees, spouses and children) were getting the best care they ever have and saving a lot of money in the process.

Get in contact with Mike:

Phone: 630.738.1835 Email: mkroupa@gocgo.com LinkedIn: Mike Kroupa

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Bigger is not always better when it comes to insurance brokers

Transcript

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