Can a different benefits broker get us lower insurance rates?

One of the biggest misconceptions in employee benefits is that a larger broker, or one with a "special carrier relationship", can automatically obtain lower medical insurance rates.

For standard carrier-rated medical plans, that's not how pricing works.

Who determines medical insurance premiums?

The insurance carrier establishes medical premiums using applicable rating and underwriting factors, which may include:

• The employer's geographic location.
• Employee ages and covered dependents.
• The number of participating employees.
• The medical plan and provider network selected.
• The group's claims experience, where permitted.

The factors that apply depend on the size of the employer and the type of coverage.

The broker regardless of their relatinship with a carrier, doesn't determine the carrier's medical premium.

Would Aon and MPOWR receive the same rates from Blue Cross NC?

For the same employer, identical census information, effective date, and exact same standard medical plan, yes.

Whether the proposal comes through a representative of a large national brokerage or MPOWR, the underlying carrier rate for that plan is the same.

North Carolina's small-group medical market operates under regulated carrier rating practices.

This is why comparing brokers based solely on the premiums they present can be misleading.

Then why do different brokers show different prices?

Because they may be showing you different plans.

Imagine Blue Cross NC provides 200 available medical plan options for your organization.

One broker selects five plans with the lowest premiums.

Another selects five plans emphasizing copayments, provider networks, or more predictable out-of-pocket costs.

The resulting presentations could look dramatically different, even though both brokers received the same underlying carrier rates.

Neither broker necessarily obtained a better price.

They made different decisions about which plans you should see.

Does this apply to every type of insurance?

Not necessarily.

Ancillary and voluntary benefits, such as dental, vision, life, and disability insurance, may have different underwriting, pricing, commission, and negotiation arrangements.

Additionally, customized large-group medical arrangements and alternative funding strategies can involve different negotiated terms, fees, or financial structures.

Those situations should be evaluated separately from a straightforward comparison of identical carrier-rated medical plans.

So what should we evaluate when comparing brokers?

Rather than asking who can obtain the lowest medical rates, ask how each advisor determines which plans deserve your consideration.

A thoughtful advisor should be able to explain:

• Which available plans were evaluated.
• What criteria were used to compare them.
• Why certain plans were recommended.
• What financial and coverage trade-offs were considered.

How does MPOWR approach it?

At MPOWR, we begin by understanding your organization's priorities, workforce, and financial objectives.

We then evaluate available medical plan options using a consistent analytical approach rather than selecting plans based solely on premium or personal preference.

Our recommendations consider employer costs, employee expenses, coverage features, provider access, and the trade-offs involved.

We don't expect employers to accept our recommendations simply because we're the advisor.

We believe you should understand how we arrived at them.

The difference between advisors isn't necessarily what the carrier offers. It's how thoughtfully those options are evaluated.