80 employees. Happy with their current broker.
Skeptical we could show them anything new.
They were wrong.
The Setup
This prospect walked into our discovery meeting confident. They liked their broker. They doubted we’d bring anything to the table they hadn’t already seen.
We asked one question: “Has your broker discussed raising your deductible and implementing a Health Reimbursement Arrangement?”
Blank stares.
Their current broker had never mentioned an HRA.
The Numbers
Current plan: $1,000 deductible
Our recommendation:
- Raise deductible to $5,000
- Implement an HRA that covers everything after the first $1,000
Result: Projected savings of more than $100,000, even if they reimburse 20% of HRA exposure.
Employees keep their effective $1,000 deductible. Employer cuts costs significantly.
Win-win.
Why Their Broker Never Mentioned This
Three potential reasons:
- More work required. An HRA takes effort to design and administer. Most brokers push the easy button: spreadsheet comparisons, carrier swaps, cost-shifting to employees.
- It costs the broker money. Lower premiums mean lower commissions. When your compensation is tied to premium dollars, you’re incentivized to keep those premiums high.
- They didn’t know it existed. Many brokers lack the knowledge or skills to implement alternative-funding strategies. They stick with what’s comfortable.
The Problem
This employer was paying tens of thousands more than necessary. They trusted their advisor. They assumed they were seeing all available options.
They weren’t.
What You Should Ask Your Broker
- How are you compensated?
- What overrides and bonuses are you earning above standard commissions?
- Have you analyzed alternative-funding strategies for our organization?
- Why haven’t you recommended an HRA?
If your broker can’t answer these questions clearly, you’re leaving money on the table.
If your broker isn’t disclosing their full compensation, they’re withholding information, and you’re creating a fiduciary liability for your organization.
Here’s What Matters
This is your second or third largest business expense. You should be asking questions.
We’re willing to do the work, roll up our sleeves, and design programs built to last. Programs aligned with your unique objectives.
DM me for more information.