We Pay Our Broker How Much?! Stewarding the new Broker Compensation Disclosure Law with Sam Beckworth
Signed into law, the Consolidated Appropriations Act, 2021 (CAA) created new requirements for health insurance brokers and consultants to disclose compensation they may receive for arrangements between a plan sponsor (employer) involving a group heath plan, whether fully or self-insured, including dental and vision. Bottom line? Brokers are to inform their clients in detailed writing how much dough they'll be making from your organization! (Serious? Crikey! Holy Schnikes! How much?! Whatcha talkin' 'bout Willis?! Why didn't you tell me this before Secret Agent Man?! Sounds good Tom, but I'd like to take a look at your operation before I commit to sign this Compensation Disclosure Form.) Again, this is now law! In this fast moving and all-too important session, we will cover three important elements: · The Legal: THE NECESSARY BORING We'll discuss the new disclosure requirements, content, timing and fiduciary requirements, in addition to a sample Broker Compensation Disclosure Form. · The Practical: THE HELPFUL NORMAL Peter Drucker says, "What gets measured get MANAGED." There is a practical exchanged of compensation for services rendered. What might this look like and how interested should you be for the sake of your organization's bottom line? · The Ethical: THE MORAL HIGH GROUND Your organization should want to know, and your broker should want to share. This law recognizes a filter of transparency that is touching most of the benefits world already.
Sam Beckworth
Sam is the founder and owner of Beckworth Benefits, a health and benefits agency. After two years into the financial services industry beginning in 1995, Sam began to observe a pattern within group health insurance agencies at large. Brokers tended to be more reactive to their company-client needs rather than proactive. Annual renewal time seemed to be the only events that triggered activity from the broker of record. As he worked with both smaller independent agencies and large national organizations, agency engagement reflected a common thread: whether agency resources were vast or lean, agency success was directly related to the specific broker serving that company-client. Although training, resources and corporate backing is helpful, he found that individual broker engagement, or lack thereof, was the key determining factor for client satisfaction.
From this perspective came the driving force behind Beckworth Beneficial’s BEYOND Broker approach. The benefits business, with all of its needed online portals, required ERISA compliance and helpful benefits administration services, is first and foremost an authentic people business. While offering a full spectrum of professional services, rich product offerings and strategic tools to help Human Resource professionals measure what they manage, Sam's consistent heartbeat is to put the human back into benefits.