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I was reviewing a health insurer’s contract for a client recently and saw the following language about payments to their broker (in addition to the commission that is disclosed on the 5500):

“The qualification for and amount of this payment may be based upon overall business growth and/or retention levels.”

Most employers don’t realize that traditional brokers are compensated for keeping them with their current health insurer. In fact, these bonuses can be so large that they make or break the entire year for many offices.

If you think that it could be time for some advice that is not clouded by commissions or back end bonuses let me know. I would be happy to share some case studies with you that show exactly how to remove the many misaligned incentives that drive up the costs of employer sponsored health care.

There is a better way…

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