How I'm paid, in plain words

The short version

What’s included

Switching brokers takes real time: servicing your plan all year (adds and terms, ID cards, billing, employee questions), the Plan Report, and the renewal strategy from about 90 days out, with firm quotes in 20 to 25 days, that ends in an owner-ready summary, a recommendation and the decision file.

All of it is included. It is paid through the plan as placement commission, not billed to you. Nothing is analyzed or quoted, and none of your documents or claims are used, until the engagement letter and broker-of-record letter are signed. You get my pay in writing, in dollars and per employee, before you sign, and the engagement letter says exactly what it covers.

The Plan Report is an advisory analysis of your plan's costs, not an accounting opinion.

See a sample renewal strategy and decision file

How the commission works

The carrier pays me a placement commission. It’s disclosed in writing, in dollars and per employee, before you sign anything. The disclosure covers the whole chain: my commission plus any agency or general agent override.

From your first renewal with me, it is a flat $40 per employee per month at standard scope, stated in your engagement letter and disclosed in dollars before anything is signed. It is paid by the carrier, not billed to you.

If you move your plan to me mid-year, the carrier keeps paying the commission already built into your contract until renewal, at the prior broker’s rate. That amount is stated in dollars in your compensation disclosure. Any change to that commission can only take effect at renewal, and it is disclosed in dollars before it does.

If both happen

If you ever pay me directly and also place coverage through me, I’ll disclose both to you in writing, and you’ll acknowledge it before you sign anything. Texas has written disclosure rules for agents paid by both the client and the insurer. Federal law also requires brokers and consultants to group health plans to disclose their pay in writing when they expect $1,000 or more, at any plan size.

If anyone else would ever pay me in connection with your plan, that’s in the same written disclosure.

What I don’t do

• Nothing is analyzed or quoted, and none of your documents or claims are used, until the engagement letter and broker-of-record letter are signed.

I’m independent. I don’t work for the insurance company.

Do health insurance brokers charge a fee?

Many are paid only by commission from the insurer. Some charge a fee. Some do both. With me: onboarding, servicing, the Plan Report and the renewal strategy are included. They are paid through the plan as placement commission, not billed to you. Until your first renewal with me, the carrier pays the commission already in your contract, shown in dollars before you sign. From that renewal, it’s a flat $40 per employee per month at standard scope. Special projects, for example a self-funded structure, are priced in the engagement letter before you sign, never added later. My pay is disclosed in writing, in dollars and per employee, before you sign anything.

How is a broker's commission calculated?

Across the market, broker pay is usually a percentage of premium or a flat amount per employee per month, set by the insurer. Mine is disclosed in writing, in dollars and per employee, before you sign anything.

Do I have to buy anything after the Plan Report?

No. You aren’t committing to anything, and you keep the findings either way. You can use them to negotiate your renewal, keep your current plan, or revoke the broker-of-record letter and take them elsewhere.