“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!