By Patrick Moore on linkedin
If you’re a CFO or HR expert then you really need to hear me on this: You are now required to know how much money people are making off of your healthcare budget.
We just added a group of 300 employees. We took it over just before renewal and the previous broker was fighting hard to keep it for another month. But the BOR was ultimately transferred timely.
That’s when we learned that the carrier had already built in $40,000 of bonus compensation into the rates and they tried to give it to us. We refused and explained we don’t accept any bonuses and we also charge a direct flat fee. That’s when we realized that the previous broker compensation was in the rates as well. That compensation was double the rate we had agreed too.
Long story short – our new client is getting a check for $150,000 from the carrier.
Because of the Consolidated Appropriations Act it is the employers job to know all the dirty details of this stuff (just wait till they learn about the drug compensation).
If you think your company may be unaware of the massive amounts of money being made off of your premium dollars DM me.