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Why Broker Health Plan Fee Agreements No Longer Work
Craig Gottwals, in LifeHealthProLink to more items from this source
Feb. 24, 2015
"A carrier can retain 10 percent of the annual premium and pay a broker 5 percent. It can keep 11 percent and pay a broker 4 percent. It can keep 12 percent and pay a broker 3 percent, or it can keep 15 percent and pay the broker nothing. The idea that a broker can 'save' an employer money by going on a fee basis in the new world of health reform is, in and of itself, a demonstration of a lack of knowledge of PPACA.... In fact, a broker who works on a fee arrangement as opposed to a commission will end up costing an employer more. The employer will end up paying 15 percent overhead to the carrier and, in addition to that amount, the employer will pay another fee to the broker."

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