By Donavan Ryckis
It was a carrier’s 2026–27 large group incentive program, sent to brokers. You won’t find it in a renewal deck or a broker presentation, but it gives you an inside look at how renewal decisions actually get made.
Here’s what it looks like on a 500-employee company where the broker earns let’s say $25 per employee per month:
Base commission: $25 × 500 × 12 = $150,000/year
Bonus for moving the group to this carrier: $100 × 500 = $50,000, capped at $25,000
Bonus for getting the renewal signed early: $1,250
Total incentive: $26,250, about 17.5% on top of commission
Not included: the carrier’s traditional bonus schedule, which pays more for volume, retention, and growth with that carrier. Those stack.
So think about what’s being rewarded. The broker gets paid more to put you with a specific carrier, more for getting you to sign fast, and more for keeping you there. What you need from a renewal is time, real alternatives, and someone willing to push back on the number. None of that pays a dime under this program. That’s what a perverse incentive looks like: the reward sits right on top of the outcome you’re trying to avoid.
I’m not saying every broker who takes this money is doing something shady. Most are good people working inside a system that was built this way. But incentives work quietly. By the time the renewal options hit your desk, somebody may have already decided which ones you get to see.
The good news is you have a tool here. Under the CAA, brokers to ERISA health plans have to disclose any direct or indirect compensation of $1,000 or more, and that includes bonuses. As the plan fiduciary, reviewing that disclosure is your job, and so is deciding whether the pay is reasonable.
Before you sign your next renewal, ask your broker for these 3 things in writing:
1. An actual 408(b)(2) – you’ve been owed one ever year since 2022
2. Question if you don’t see bonuses, they exist
3. What they took to market, and why each option was ruled out
If the answers make you uncomfortable, that tells you something.