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Broker or Agent? Which is Better when Researching Arizona Group Health Insurance Plans for Small Businesses?

Are you researching group health insurance plans for small businesses?  If so, you need to understand the difference between group health insurance agents and brokers. Read to learn about the important difference.
Broker or Agent?  Which is Better for Group Health Insurance Plans for Small Businesses Broker or Agent? Which is Better for Group Health Insurance Plans for Small Businesses

Are you researching group health insurance plans for small businesses?  If so, you need to understand the difference between group health insurance agents and brokers.

In 2018 Arizona small businesses must put their best foot forward when it comes to attracting and keeping new employees.  One great benefit you can offer your staff is access to a group health insurance plan.

Whether you have just one or two employees or a couple dozen, offering your current and new employees a variety of health insurance plans can provide you with that incentive needed to entice new talent and grow your business.

But sorting through a pile of paper about group health insurance plans for small businesses is no easy task because there are so many variables, plans, options, and jargon.

One of the first things you should understand is the difference between a group health insurance agent and a broker.  This article provides helpful info as you make this first critical choice on your path to offering your employees' group health insurance in Arizona.

You need an expert to help guide you through the jargon

The world of Arizona health insurance plans is complex and full of terminology that most that confuse the hell out of normal people.  The jargon alone can make navigating group health insurance plans for small businesses feel like explorings the Arizona backroads without a subscription to Arizona Highways - you won’t know the best route.

The type of insurance that’s right for your business depends on several factors, such as company size, the needs of your employees, budget, the age of your employees, what additional perks you want to offer, and more.

This means researching and selecting small business health insurance plans for your company can be a daunting task.  Unless you are the type of person that loves to become an expert in everything you will want to work with a group health insurance expert.

Examples of the jargon of group health insurance plans for small businesses

To help drive home the point about the importance of working with a local Arizona group health insurance expert, here are just a few the terms thrown around in the health insurance industry:

  • Minimum participation requirements

  • Employer minimum contributions

  • Employer Tax Exemption

  • "Cadillac Tax" on High-Cost Employer Plans

  • Essential health coverage (prescriptions, lab work, emergencies, etc.)

  • Co-payments

  • Coinsurance

  • Higher deductibles vs higher premiums

  • Catastrophic coverage

  • Out-of-pocket limits

  • Health savings accounts

  • Dental coverage

  • Vision coverage

  • Disability - short and long-term

  • Gap insurance that covers employee deductibles

  • Small Business Health Options Program (SHOP)

Learn More: Arizona Dept of Insurance

The Difference Between Health Insurance Brokers and Agents

When searching for help with small business group health insurance in Arizona, a small business has two main choices: an agent or a broker. While both roles are similar in terms of the products they sell, the main differences are the representation and product variety.

A health insurance agent represents a single insurance company and only sells that company’s products.  There is a built-in bias with insurance agents because they are selling you only the products they represent.

Conversely, a health insurance broker represents insurance products from numerous providers. As such, a broker will be more impartial than an agent.  Brokers have access to a broader range of products and have more flexibility when it comes to personalizing options to suit your needs and budget.

Both agents and brokers offer group health insurance plans for small businesses. The key difference is agents work for the insurance companies, while brokers work for the clients (i.e., you).

How a Broker Can Help You Find the Perfect Small Business Medical Insurance Plans

The major advantage of working with a local group health insurance broker when research group health insurance plans for small businesses is unbiased guidance.  

Your broker is less salesman and more a friend trying to help.  

Brokers love to explain terminology you don’t understand, lay out your plan options, answer questions, and walk you through the entire process, from shopping to comparing and quoting to implementing and ongoing support.

In fact, a broker is more like an insurance partner, because your health insurance broker will always be available to help with things like new enrollments, claims, billing, changing products, renewals, and more.

Another great thing about brokers is they are experts in the field.  Brokers tend to have more have in-depth knowledge of the plans, laws, and regulations that could impact your company than single company agents.  

Furthermore, health insurance brokers are experts at personalizing plans based on the needs of their clients, so they’ll take into account all the factors to find a perfect solution for your business.

Conclusion

Researching and choosing the right group insurance plan for your company is important if you want to attract and retain the best talent in the coming years because people look for extra perks like health benefits when making career decisions.

Although navigating the muddy waters of group health insurance can be difficult on your own, the right broker can provide you with personal service, guide you through the process, and provide ongoing service as your company grows.

Free consultation with a group health insurance broker

Do you want free help figuring out group health insurance plans for small businesses?

Anderson Insurance Services is a licensed health insurance broker and offers a wide range of insurance solutions include group health insurance, Medicare Supplements.

Owner Jerry Anderson can connect you to nationally recognized insurance carriers and work with you on a strategy that meets the unique needs of your business.

Call (480) 607-7049

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