A large number of small business owners make the same mistake and have the same common misconception regarding their group health insurance plan, and it is one that is costing them significant money each and every year. The problem is this small business owners typically believe that by handling their group health insurance in-house they are somehow saving money. In fact, this is exactly opposite the truth.

In fact, whether a company uses an insurance broker, or goes directly to the carrier instead, has no effect on the premiums for their coverage. It's not wholesale versus retail in these situations, so companies do not receive a discount for going directly to the insurance carrier. The money that is paid to the insurance brokers is already worked into the premium, so small businesses that do not use a broker are simply paying for service they aren't getting. In fact, the health insurance companies love it when businesses do not use a broker because it results in more money for them.

When small business owners receive their annual renewal rates every year, and realize they'll be getting a staggering 20-40% increase in premiums, those without a broker end up picking a staff member in their office to try to find a new plan. First of all, this person has no interest in the health insurance industry, no training, no resources, and rarely knows the difference from one plan to the next. That unlucky employee then has roughly 60 days to learn as much as possible about health insurance plans for small businesses, contact as many insurance carriers as they can find, explain to the representative on the other end of the phone what they want, and then compare all of the quotes. This entire process can take weeks, if not months. What's even worse is that during their investigation, the employee still has to find a way to complete all the normal work that's part of their job duties. In the end, the company might end up with a decent plan that's not too expensive, but what was the actual cost? Consider the lost production, the increased stress, the backlog of work that had to be put aside, etc.

On the other hand, those employers who retain the services of a broker find that they are actually presented with multiple comparison quotes and competitive analysis usually before they're even aware their annual renewal is approaching. The brokers receive the same renewal package, and they have the resources in their offices to generate new quotes from multiple

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