How do health insurance brokers, consultants, agents and producers support employers?

Employer health insurance brokers typically serve small and midsize employers and act as an intermediary between the insurance carrier and the employer. They typically work with multiple carriers to recommend health plan options based on how an employer wants to fund their health plan (fully insured vs. self-funding), number of employees and other factors.

Brokers provide simplified plan option information, helping employers compare the costs and coverage of multiple plans across a handful of carriers. Brokers are licensed and regulated by individual states and typically receive commission directly from the insurance companies they represent. 

Health insurance brokers primarily focus on helping you with initial plan selection and providing valuable support during renewal periods by presenting you with a carrier’s updated plan options and pricing. This may help you evaluate and adjust coverage to meet changing needs over time. Some brokers will also provide support with annual enrollment and serve as a resource throughout the plan year.

Agents and producers, who also typically support small and midsize clients, have similar roles to brokers with a few key differences. 

Unlike a typical broker, a health insurance agent or producer usually works with a single insurer. They may offer traditional health coverage or Medicare to individuals. They may also offer traditional health insurance with specialty insurance — like vision, dental or financial protection — to both individuals and groups. 

Since most group health insurance agents and producers are paid directly by the insurance carrier they represent, you shouldn’t have any additional charges or costs beyond the coverage itself — but always ask to be sure. 

As many as 87% of our surveyed small firms use brokers and agents to purchase Small Business Health Options Program (SHOP) insurance and other ACA-compliant, private group insurance.¹

Benefits consultants typically support larger employers, serving as strategic advisors to their clients. They also serve as a bridge between the carrier and employer, and seek to build strong relationships with their clients. Consultants have a deep understanding of various carriers and point solutions, and provide in-depth, data-driven insights to their clients. 

Additionally, consultants advise on plan administration and documentation throughout the year, not just during enrollment periods. Consultants often remain involved year-round, offering ongoing advice based on data to support you in managing benefits strategy, compliance and plan administration. 

Unlike brokers or agents, health insurance consultants often use different payment structures. They typically receive compensation from their clients through flat fees, a percentage of the contract total or participant-based fees, with costs discussed upfront. A consultant may be a good fit if your organization has a larger budget and you self-insure your health insurance benefits, which may require more comprehensive, ongoing guidance.