The Benefits You Get When Your Insurance Bribes Your Employers

“A broker can power up the bonus to $150,000 per employer” says Health Net of California. “Set sail for Bermuda,” says insurance giant Cigna, offering their top-selling brokers five days at one of the island’s luxury resorts! And if you think this was absurd, New York’s EmblemHealth guarantees their top selling broker a “chance of a lifetime” by going to bat against Mariano Rivera, the retired legendary New York Yankees pitcher.

Simple business tactics, right? Wrong. Guess who pays for the plans the brokers sell: you, the employees! The human resource directors of employers rely on, and trust insurance brokers, who are supposed to have their client in mind, right? Wrong again. The goal here is not to find the most cost effective plan, but to find the most expensive. 

Brokers get a continuing yearly 3 to 5 percent commission on the premiums, and sometimes as high as 40% or 50% commission for the employers they sign up, so as you can see, this incentivizes them to sell the most expensive plan. This premium is built into the insurance plan and these commissions do not include bonuses. Do you see where this is going? In 2017, Blue Cross Blue Shield plans, serving 15 million people in five states, rewarded over $816 million on broker bonuses and commissions! Some getting up to $110,000 by bringing in companies with 1,000 or more employees.

It goes back to the middlemen/women that are robbing our country and making us pay! If this doesn’t scream conflict of interest, then I don’t know what does.  It’s just like physicians being “awarded” to sell pharmaceutical medications or DME’s. The average out of pocket cost of a family of four in the US in 2020 is to be projected to be $20,000!

Fortunately, there are people who have a moral sense to not rob people of their hard earned money. Dave Chase, a Washington businessman, created Rosetta in 2016, which certifies brokers whom are complete transparent to their employers. Unfortunately, only 110 Rosetta certified brokers exist in an industry of more than 100,000. 

Should this industry of middlemen also be regulated? No. Let’s regulate Doctors and let’s blame them for everything and continue to hide the legalized, absurd, crime perpetuated by such industries! After all, we are in the United States, where Healthcare is falsely the most expensive and absurd service! 

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  5 comments for “The Benefits You Get When Your Insurance Bribes Your Employers

  1. Mamadoc
    January 23, 2020 at 3:34 pm

    And just think, when they’re selling a Medicare “Advantage” plan, we ALL pay for it….because it’s taxpayer money. “If you’re not outraged, you haven’t been paying attention.”

  2. Benjamin Van Raalte
    January 21, 2020 at 11:11 am

    If brokers are getting 3% of the health care dollar, and physicians get 12% but we put blame on physicians something is wrong. I bet the physicians between training and hours and numbers of doctors put in 100 to 1 hours that that brokers do in their careers.

  3. Jeff Randle
    January 20, 2020 at 3:26 pm

    Am I missing something? The insurance broker gets rewarded for making sales. Isn’t it the company which is buying the insurance supposed to comparison shop and buy the best insurance for their employees? It seems like the problem is with the HR director who didn’t do due diligence when shopping for insurance?

    • Jennifer Hollywood
      January 21, 2020 at 8:42 am

      The HR director only gets shown plans that reap higher rewards for the broker. Many HR directors are not that knowledgeable. They pick from a small selection of select choices. It is possible they are given kickbacks by the broker.
      (That is me being paranoid and I have no proof). I have spoken with HR people regarding contract restrictions on their plans that they (and hence their employees) were not even aware of. A large pathology group brought a plan for their employees (and families). Ironically, they couldn’t even send specimens to their own pathology lab under the contract they signed. And they were completely unaware of that fact until I pointed it out at an office visit.

  4. sudha manjari prasad
    January 20, 2020 at 2:04 pm

    The laws of the jungle are at work here. The more the doctors are afraid of their own shadow, the more the predators gleefully rip them off. How far do they go before we take our heads out of the sand?

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