Author: brittany

When picking a new broker, you go through the usual decision making process: talk to your references, perform a Google search, or Ask Jeeves (because even though he’s retired, he’s still around).

Either way, when you decide to evaluate your broker, you may realize that they are not the right fit for you. When you move to a new benefits broker, it signals a time of change. But fear not, this change is quite simple. Pinkie swear.

There’s a lot of good stuff that comes with a new broker: you will be building a new strategic relationship, gaining an advisor, and moving your business in a positive direction.

So you’ve probably heard the saying: time is precious. Well, so are your resources. And the budget for employee benefits is not one you can afford to go to waste. As your business progresses, so will your needs.

One way Decisely helps your small business through any stage of growth is through one-to-one customer service by working with you to build a strategy that matches your business goals. If you know it’s time for a change in benefits brokers, the first and only step to going about this is very easy:

1. Submit a Broker of Record letter.

Okay, so what is that exactly?

A Broker of Record letter simply states who you have chosen as your broker. Hence the “record” part ?. This letter should be sent to your current insurance carriers, your current broker, and your newly appointed broker. A Broker of Record letter gives your new broker access to your current insurance plans and coverage.

Once you do that, your new broker has the authority to represent your business. Unlike infomercials, there really is nothing more to do.

The best part, some brokers (like Decisely) take care of this step for you – all you have to do is sign. Easy, right?

For those that have questions or want a few more details, keep reading (because it never hurts to have a little clarity). A Broker of Record letter is necessary because insurance companies only acknowledge one broker for each of their accounts. The Broker of Record letter provides protection for your business by authorizing only the appointed representation can guide you in the insurance marketplace.

If you are worried about when you are eligible to change brokers, the good news is that you can switch to a new broker at any time. The choice does not revolve around enrollment deadlines or plan terminations. Also remember that switching to a new broker does not mean you have to switch your plans or carriers. Brokers purely help manage these accounts and ensure you have the most up to date information in regards to benefits. Because of this, your business is able to keep your current benefits package. Choosing a new broker does not mean you have to burn bridges, but rather it is choosing to put what is best for your business first.

Running a small business means you’re constantly making decisions. Some decisions are easier than others. When it comes to healthcare options, there are many to choose from. You may want to turn to the SHOP Marketplace, but read on to see why you should reconsider.

What is the SHOP Marketplace?

Known as the Small Business Health Options Program (SHOP) Marketplace, this section of HealthCare.gov offers a place for employers to choose health and dental coverage for their small businesses.

Both nonprofit and for profit businesses with 1 to 50 employees are eligible to use the SHOP Marketplace. Certain states allow businesses with up to 100 employees to use it. Coverage must be granted to all full-time employees, and can also be offered to part-time employees. Typically, full-time employees are those working an average of at least 30 hours per week.

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Here’s why many small businesses are avoiding the SHOP Marketplace:

1. The SHOP Marketplace offers group plans, not individual exchanges.

When it comes to healthcare, the biggest issues facing small businesses is cost and participation requirements. So here’s the thing: plans offered by the SHOP Marketplace are group plans, not individual plans. Group plans are not only expensive, but the costs are expected to increase even more due to new ACA taxes. With limited resources, these are expenses many small business cannot always afford.

2. Implementation delays and technological glitches mean the SHOP Marketplace is not always as user friendly as it claims to be.

The SHOP Marketplace looks like an attractive option on the surface, but it rarely addresses the concerns of small business owners. The Marketplace has faced implementation delays and technological issues more than a few times. In 2014, 33 states faced delays in the “Employee Choice” feature, in which employees should have been able to select their health plans in a quick and efficient manner. After this delay, 18 of those 33 states decided to opt out of this feature.

3. There is little choice available for small businesses.

The Marketplace offers little choice for small businesses in what kinds of coverage and benefits they can offer. With little competition, there is no incentive to drive costs down. Based on SHOP policies, premiums also cost more for small businesses.

4. There are limitations behind the widely advertised small business tax credits.

One of the biggest advantages of the SHOP Marketplace is the tax credits that come along with it – supposedly. The small employer tax credit is actually difficult to obtain. The credit is only available to businesses that have less than 25 full-time employees, and pay those employees a salary that averages less than $50,000 per year per employee. Lastly, even if your business qualifies, you cannot receive the credit for more than two years in a row.

With the assistance of a broker (like Decisely), you can ensure you assemble a benefits package that is both cost effective and meets the needs of your team effectively. Rather than stress about higher premiums and group plans, find the package that works best for your business without delays or glitches.