First of all, group health insurance Texas is a highly regulated and competitive business in Dallas Fort Worth, and throughout the state of Texas. The Texas Department of Insurance is charged with regulating and upholding the state's Insurance Code, which consists of all of the laws passed by the Texas legislature. Each year, the legislature passes dozens of laws that can complicate and add cost to the insurance plans for individual insurance plans and group health plans for all but the largest of companies in the state. Plans for big companies that self-insure are regulated by federal ERISA legislation which changes more slowly. So, the first fact you may not know is that your state congressman and senator impact the rates that you pay by the laws that they pass.
The second little known fact is that any group health insurance agent who claims that they can "get you better rates" is either lying or doesn't know what they are talking about. Every health insurance carrier's rates are regulated by the Texas Department of Insurance, and are the same from agent to agent.
The third little known fact is that a group health insurance agent can only estimate what an insurance company's actual rates will be, as the final rates will be based upon the health insurance company's underwriting of the individual employee applications. An agent can only provide non-binding estimates, or "standard rates," that are based on the age, gender, and location of the employees and on the dependents, and business location and industry classification. For small businesses of 50 or less eligible employees in Texas, by law the final rates can vary by as much as 67% from the standard rates.
The fourth little known fact is that it is not only unethical but against the law for a health insurance agent to offer cash or gifts in exchange for an individual's or company's group health insurance business. Any agent caught doing so faces stiff fines and loss of their license.
The fifth and most important fact is that in spite of the above facts one through four, a knowledgeable agent can save even a small Dallas Fort Worth business hundreds of thousands of dollars. An expert group health insurance agent can advise an employer how to implement a program that rewards employees for maintaining healthy lifestyles.
These types of plans, called corporate wellness or employee wellness plans, are extremely affordable for even small companies, and can save a company about four dollars in reduced health care claims and reduced absenteeism for every dollar spent. Not surprisingly, healthy employees and adult spouses have fewer health claims and have lower absenteeism. Preventing a single medical condition such as diabetes or cancer can save the employer and the employer hundreds of thousands of dollars.
Likewise, an expert group health insurance agent can show an employer how they can easily save as much as ten to fifteen percent on the cost of their employee benefits. By purchasing a group health insurance plan that does not contain such benefits as Rx (prescription) co-pays and then purchasing the same co-pay benefit from a more cost-effective resource, the group health insurance broker can save the employer considerable money.