Should you work with a dental benefits broker?

Offering the right benefits package can make all the difference when competing for talent, and dental coverage is one of the most valued benefits for today’s workforce.¹ But finding the right plan for your company can feel overwhelming. That’s where a benefits broker can help. Below, we answer some of the most common questions employers ask about working with a broker.

How is a broker different from an agent?

You can purchase a dental policy from either a broker or an agent. A broker represents your organization as an intermediary with the benefits provider, while an agent represents the benefits provider or providers.² Neither option is “better” than the other, it really depends on how much guidance and flexibility you’re looking for. The right choice depends on your company’s needs.

What will using a broker cost me?

There are fees associated with using a broker³, these might be:

• Flat fees, paid directly by your business, or

• Commissions, paid by the benefits provider to the broker. (In this case, the commission is often built into the premium.)

Whether you work with a broker or an agent, you’ll want to ask about how they’re compensated and what, if any, impact that has on your costs.

What are the advantages of working with a broker?^4,5,6

A broker can save you time, money, and stress by helping you navigate the details of dental coverage. Here are a few advantages:

• Impartial advice. Because brokers aren’t tied to one company, they can compare multiple plans and providers.

• Tailored recommendations. Brokers can focus on your company’s unique needs, budget, and goals.

• Experience. Brokers often work with businesses of different sizes and industries, giving them broad insight into what’s available.

• Convenience. Brokers can do the legwork of researching options and negotiating on your behalf, freeing you to focus on your business.

How do I find a broker to work with?⁷

Finding a broker who’s the right fit is important. Here are a few steps to get started:

• Ask for referrals. Talk to other business owners or HR leaders in your network.

• Check credentials. Contact your state’s insurance commissioner’s office to verify licensing.

• Ask the right questions. Here a re a few to get you started:

  • Have you worked with companies of a similar size to mine?

  • How many carriers do you work with?

  • How are you compensated?

  • How will you support me after enrollment?

Choosing a broker is much like choosing any trusted partner, experience, transparency, and a good working relationship all matter.

Whether you work with a broker or an agent, Delta Dental of Tennessee partners with both to make sure your employees have access to the largest network of dentists in the state, and benefits designed to support their overall health.

Sources:

¹ https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/dental-benefits-save-employers-money.aspx

² https://www.thebalancesmb.com/agents-versus-brokers-and-how-they-make-money-462383

³ https://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-hire-a-health-insurance-broker-or-agent/

⁴ https://www.moneytips.com/pros-and-cons-of-using-an-insurance-broker-or-agent

⁵ https://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-hire-a-health-insurance-broker-or-agent/

⁶ https://corporatefinanceinstitute.com/resources/careers/jobs/commercial-insurance-broker/

⁷ https://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-hire-a-health-insurance-broker-or-agent/