Skip to Main Content Back to Top Let's Talk
Home Blog What is a benefits broker and how can they simplify employee benefits?

What is a benefits broker and how can they simplify employee benefits?

October 29, 2024
Businesswomen meeting in lobby of modern office
Higginbotham H logo

Navigating employee benefits can be complex for employers, especially when balancing cost control with providing comprehensive offerings to workers. This is where a benefits broker can become indispensable. Acting as an intermediary between employers and insurance providers, benefit brokers help design, implement and manage employee benefits programs.

Talk to an Employee Benefits Broker

What is a benefits broker?

A benefits broker specializes in guiding organizations through the process of selecting and managing their employee benefits. Their expertise lies in understanding the insurance landscape and creating benefits packages that meet the unique needs of an employer’s workforce. Core coverage options that a benefits broker may help with include:

In addition to these benefit offerings, brokers also offer various voluntary benefits, which can enhance compensation packages and provide a competitive edge in the recruitment and retention of employees. These could include, but aren’t limited to:

Brokers not only serve as a bridge between employers and insurance companies but also act as advisors, helping businesses stay compliant with federal and state regulations like the Affordable Care Act (ACA) and HIPAA. Their role in simplifying the often-overwhelming benefits process can make them invaluable partners for companies of all sizes.

Group of business persons during a meeting in the office

How can a benefit broker support your organization?

The contributions of a benefits broker go beyond evaluating insurance plans. Their services encompass a range of activities that support a company’s overall benefits and compensation strategy. These services could include:

  • Plan Design and Customization: One of the core functions of a benefits broker is to help design and customize benefits plans that fit the unique needs of an organization and its employees. This involves tailoring core benefits like health, dental and vision insurance while incorporating voluntary options, such as disability insurance, mental health benefits or life insurance.
  • Insurance Carrier Quotes: Brokers maintain relationships with many insurance carriers and leverage these relationships to help your organization obtain competitive pricing and comprehensive coverage options. Instead of relying on just one insurer, brokers conduct a market analysis to help ensure that your company receives the best possible value for its investment.
  • Compliance Support: Navigating employee benefit regulations, especially those related to health care, can be challenging. Benefit brokers help to keep your programs compliant with local, state and federal statutes so you can prevent costly fines or legal penalties.
  • Employee Benefit Communications: Brokers can assist in developing communication strategies that educate employees about their benefits, particularly during open enrollment. This could include creating program materials, hosting informational sessions and providing real-time support to employees.
  • Vendor Management: Managing relationships with multiple insurance providers can be time-consuming. Benefits brokers act as intermediaries between your organization and insurance providers, helping to make communications more streamlined for your team.
  • Claims Support: Benefit brokers can also offer ongoing claims resolution support, providing timely and knowledgeable assistance to employees with disputes, issues or questions.
  • Employee Health and Wellness: Wellness programs have become increasingly popular but, like other benefits, are subject to various regulations. Your benefits broker can help design and implement a compliant wellness program that’s tailored to your workforce. This could include initiatives like preventative health screenings, smoking cessation programs and on-site flu shot clinics, just to name a few.
  • Open Enrollment: Open enrollment is a critical time for any organization, and benefits brokers can play a vital role in making sure it runs smoothly. In addition to providing pre-enrollment resources to employees, brokers can manage the coordination and execution of enrollment processes, which can reduce the burden placed on HR teams during this time.
  • Cost Control and Strategy: In addition to managing the day-to-day of your benefits program, brokers bring long-term, strategic insights to help contain costs and maximize the value of your benefit offerings. By analyzing cost drivers, providing creative solutions and staying on top of industry trends, benefits brokers help organizations to keep their benefits packages competitive and sustainable.

Learn About Higginbotham’s Employee Benefit Services

Can small businesses use a benefits broker?

Small businesses often face challenges in offering competitive employee benefits due to limited resources and bargaining power. A benefits broker can level the playing field by providing access to a wider range of benefit options, including health, dental and vision plans, that are typically only available to larger companies. Brokers can also help small businesses compete for top talent by creating customized, cost-effective benefits packages. In addition, a benefits broker can allow employees to focus on their core tasks by removing the administrative burden associated with managing employee benefits.

Choosing the Right Benefits Broker

Selecting the right broker is critical to the success of your employee benefits strategy. Reviewing references, conducting interviews and evaluating the broker’s expertise, experience and service offerings can provide insights into their ability to meet your organization’s specific needs.

Key factors to consider include the broker’s knowledge of your industry, their approach to customer service and the solutions they can provide. A strong cultural fit between your organization and the broker is also essential for a successful partnership.

Improve Your Employee Benefits Today

Benefits brokers can play a crucial role in designing, implementing and managing an effective employee benefits program. From controlling costs to enhancing employee engagement, brokers can provide support that simplifies the complexities of employee benefits.

At Higginbotham, we take a comprehensive approach to employee benefits. We believe we’re more than just a broker – we’re your partner in designing comprehensive benefits packages. We combine personalized coverage options, in-house services and proprietary technology to simplify administration and support your team year-round. Talk to a benefits specialist today and discover how Higginbotham can help elevate your employee benefits.

News + Insights

Explore Our Latest News & Insights

A doctor discusses Medicare paperwork with an older man in a medical office setting

Health Savings Accounts (HSAs) and Medicare: Eligibility, contributions and more

Health Savings Accounts (HSAs) can be a flexible and tax-advantaged way to pay for health care costs. You can build up your HSA with pre-tax contributions and use it for qualified health expenses. But, once you enroll in Medicare, you can no longer make contributions or receive contributions from your employer into your HSA account.

Employee Benefits
Business woman holding a clipboard with her colleagues in the background during a meeting in board room

Conducting an employee benefits survey: Questions to ask workers

If you want to know what benefits your employees need and how your company can better support them, just ask. An employee benefits survey can be a good way to gain insights as a company fine tunes its benefits strategy. But, to gather the information you need, it’s important to ask the right questions.

Employee Benefits
Group of determined athletic people running on treadmills in a gym in the city

How to encourage worker well-being with corporate exercise programs

Many Americans don’t get enough physical activity, and this problem is especially prevalent among office workers who spend their days sitting in front of a computer screen. This lack of exercise can lead to problems like increased health care costs and lower productivity. Employers can help make a difference by implementing corporate exercise programs.

Employee Benefits
Female Doctor with Stethoscope Holding Piggy Bank

Cost containment in health care: Strategies for employers

How can employers control health care costs as medical expenses surge? According to PwC, medical costs in the group health plan market are expected to increase by 8 percent in 2025. Both employers and employees are feeling the impact, which is necessitating cost containment in health care.

Employee Benefits

Not sure where to start? Talk to someone who wants to listen.

A great plan starts with a conversation. Let’s talk about what you need.

Let’s Talk

Request a Quote

In a bright room, a person with glasses and curly hair smiles warmly while looking to the side, embodying the essence of commercial coverage in a personal setting.
Higginbotham H logo