Switching benefits brokers without disrupting your plan.
Changing brokers is an administrative decision, not a plan change. Your carrier, your plan design and your employees’ ID cards can stay exactly as they are. This page walks through when a switch makes sense, how it works and how to time it.
Signs it is time to look at your broker.
Renewal Increases With No Explanation
If the renewal arrives as a number with no breakdown of what drove it, you cannot tell whether it is fair. A broker should be able to show the cause and the alternatives.
Slow or Missing Answers
Employee claims problems and carrier questions should reach someone who owns them. If they land back on HR, the service model is not working.
The Same Plan Every Year
A renewal that is simply accepted is not a strategy. Contribution structure, funding and plan design should be reviewed with you each year.
No Clear Picture of the Broker’s Pay
You should know how your broker is paid and whether that pay changes with the plan you choose. It is a fair question and a good one to ask.
Confusion Among Employees
If employees do not understand deductibles, copays and networks, they use the plan poorly and call HR more. Plain-language support is part of the job.
A Broker Who Is Really an Agent
Some producers sell policies; others advise on the whole benefits program. Knowing which you have changes what you can expect.
From decision to new broker in six steps.
1. Check the Timeline
Find your renewal date and any notice terms in your current broker agreement. Most employers have more flexibility than they assume.
2. Gather the Documents
The current renewal, the census, recent invoices, plan summaries and prior-year rates give a new broker what it needs to review the plan.
3. Review Before You Commit
A good broker reviews the renewal and the market first, so you can see whether a change is worth making before anything is signed.
4. Sign the Broker of Record Letter
The employer signs a letter naming the new broker. Carriers each have their own process for accepting it.
5. The Carrier Processes the Change
The carrier records the new broker. Your coverage stays in force while this happens.
6. Transition and Support
The new team takes over service, renewal work and employee questions, and walks HR through what to expect at each step.
Your plan does not have to change when your broker does.
Your Carrier and Plans
Changing brokers does not require changing carriers. If the current plan is right, it stays.
Your Employees’ Coverage
ID cards, networks and claims continue as they are. Employees often notice nothing.
Your Renewal Date
The effective date of your coverage does not move because the broker of record does.
Whether to also change carriers or plan design is a separate decision, made on the numbers and only if it helps your employees.
The best time to switch is well before renewal.
Start Early
A review that begins several months ahead leaves time to market the plan, compare proposals and make an unhurried decision.
Do Not Wait for the Final Rate
Once a renewal is presented, the window to question it and to market the group can be short. Early reviews keep options open.
Mid-Year Is Possible
A switch does not have to wait for renewal. Carriers have their own rules, so the details depend on your carrier and plan.
What employers ask before they switch.
Straight answers to the questions that come up most.
Will changing brokers change my health plan?
No. A broker change by itself does not change your carrier, plan design, rates or effective date. Any changes to the plan are a separate decision you make.
Do I have to tell my current broker?
The employer signs a broker of record letter, and carriers generally notify the current broker when it is processed. Check your broker agreement for any notice terms.
Can I switch brokers in the middle of the plan year?
Often yes, but each carrier has its own rules for accepting a broker of record change, so timing depends on your carrier.
Will my employees be affected?
Typically not. Coverage, ID cards and claims continue as they were, and the new broker takes over service and questions.
What does it cost to switch?
Brokers are generally paid by the carrier, so a switch is not usually billed to the employer. Ask any broker, including us, how it is paid.
Should I get a second opinion before deciding?
It is a sensible step. A review of your renewal and the market can show whether your current plan is competitive before you commit to any change.
Related guides.
What Is a Broker of Record Letter?
The letter that makes a broker change official.
How Benefits Brokers Are Paid
Commission, fee and per-employee models.
Employee Benefits Broker Guide
What a broker does and how to choose one.
Choosing a Small Business Health Insurance Broker
How to pick the right partner for a small employer.
Benefits Consulting Firms in Michigan
What to look for when choosing a firm.
Related reading: How to run a benefits broker RFP in Michigan
Send us your renewal.
We’ll tell you whether it looks competitive, where we see opportunity, and the five questions we’d put to your carrier. No cost, and no obligation to move anything.
The renewal letter
Your current plan summary
Contribution split by tier
Enrolled counts by tier
Four documents — two more if your group is 50 or more. Nothing else; every extra one is a reason to postpone.
An independent employee benefits consulting firm. We look at the entire benefits program: cost, plan performance, risk and administration.
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