Your Company Probably Shouldn’t Keep the Same Health-Insurance Provider Year After Year

It’s easy for your company to stay with the same health-insurance provider year after year.?

You just sign the same contract (likely at a significant increase) and you’re done.?

But by sticking with one provider for years, are you getting the best coverage for your dollar?

The most-likely answer is a hard “no.”?

You might think there’s no need to shop the marketplace to compare prices and benefits.

You trust your broker to find you the best deal, after all.?

But the truth is that your insurance broker has little incentive to lower your costs.?

The reason is that brokers tend to get paid on commission.?

So if you stay with the same plan, only two things change:

The cost rises by 10 percent or so.

And your broker gets a little more cash in their pocket for next year.?

Furthermore, insurance companies have something called “persistency bonuses.”?

These are massive bonuses paid out to brokers for—you guessed it:

Keeping the business with their particular favorite insurance carrier.?

And often, their favorite is the one offering the best bonus.?

In short, your company isn’t gaining anything by staying loyal to one insurance provider.?

Take the time to compare deals, and you’re sure to find a better option.