Navigating the Broker-Employer Relationship in Employee Benefits Management

The Zemar Podcast

In this episode, Butch Zemar delves into the intricate dynamics of the broker-employer relationship in managing employee benefits. He addresses common misconceptions among employers regarding the role of brokers and emphasizes the significance of clear communication and understanding of responsibilities throughout the year. Here are the key insights:

Introduction:

• Butch Zemar sheds light on the complexities of managing employee benefits and the pivotal role of brokers in this process.
• He highlights the importance of bridging the gap between employer expectations and broker responsibilities.

Employer Responsibilities:

• Responsibilities and risks associated with providing employee benefits programs, particularly for small and mid-sized businesses.
• Employers often view health insurance as a means to provide affordable coverage, while brokers manage the intricacies of the process.

Broker-Employer Dynamics:

• Brokers are essential in assisting with managing a Benefits program, but do not handle day-to-day tasks.
• There is a discrepancy between employer expectations and broker compensation, with brokers facing cuts despite rising premiums.

Financial Management and Expectations:

• Benefit consultants or advisors charge fees for both planning and ongoing management, emphasizing the value of their insights and guidance. Traditionally these are baked in the premiums as a form of commissions.
• Employers need to understand that brokers provide consultation and insurance products, but ultimate responsibility lies with the employer.

Action Items:

• Obtain a copy of the contract between the insurance company and the broker to clarify roles and responsibilities.
• Employers need to reconcile invoices for accuracy and verify enrollments to ensure proper billing.
• Communicate directly with employees for enrollments, terminations, and open enrollment.
• Seek broker consultation for intellectual knowledge, guidance and strategic planning, not day-to-day tasks.

Conclusion:

• Zemar stresses the importance of clear communication, signed contracts, and ongoing consultation to ensure successful outcomes in benefits management.
• Employers must take proactive steps to verify enrollments, reconcile invoices, and leverage broker expertise throughout the year.

For more information, please contact us at EliteBenefits.net or call 708-535-3006.