A business health insurance plan is part of a corporations basic organizational infrastructure. It helps attract and retain employees; it helps keep the workforce healthy and productive; and its also a significant budget item across all departments. For these reasons, the selection of a business health insurance plan is a key strategic decision.

Research into group health insurance offerings should be conducted by a person or a team specialized enough to become knowledgeable on the subject quickly. The final decision, however, should be reviewed by senior management to balance both the human resource and financial perspectives, as these may be in opposition regarding the cost/benefit trade-off of different group health plans.

Group Health Insurance--Basic Selection Issues

Before even starting to consider specific vendors and plans, key decision makers within the organization need to agree on the desired structural issues for their business health insurance plan, such as the scope of benefits provided, size of deductibles, choice of physicians, etc. Once a structural outline is in place, shopping for a group health plan can begin in earnest. Key issues encountered in this shopping process include:

• Merits of Agents vs. Brokers: Though anyone licensed to sell insurance is technically an agent, the term is usually applied to someone representing a single insurance company, while a broker may represent several. Though this may seem to make a broker more objective, they often earn different incentives depending on which companys plan they sell.
• Licenses and Professional Designations: In addition to checking for necessary licenses, it is useful to know which professional designations an agent or broker has earned. Designations such as Registered Health Underwriter, Health Insurance Associate, or Registered Employee Benefits Consultant demonstrate specialized knowledge and indicate that the representative takes his or her profession seriously.
• Using Online Resources: As an alternative to starting out with an agent or broker, there are online resources which can provide plan information, quotes, or referrals. Even if the company ultimately wants a personal liaison, these online resources are a great starting point, allowing researchers to arm themselves with information.
• State Eligibility: It is important to verify that any group health plans being reviewed are available in the companys state.
• Protecting Personal Data: Getting group health insurance quotes involves providing a surprising amount of employee data. Those responsible should make sure adequate steps are taken to protect this, including appropriate security measures when providing information online.
• Making Apples-to-Apples Rate Comparisons: Vendors should provide quotes on plan characteristics that are as identical as possible. If differences are unavoidable, they should be clearly identified so they can be weighed alongside any rate differences.

As with many business decisions, if the people involved start out with a reasonable knowledge base, they will quickly earn the respect of the industry professionals they end up dealing with, and in turn will have a better feel for which of those professionals can offer worthwhile advice and service.

Source

National Association for the Self Employed