Health insurance brokers are usually paid by the insurance carrier through a commission built into the premium, so in the small-group market the employer typically pays the same premium whether or not a broker is involved. Brokers earn an initial commission when coverage is placed plus ongoing renewal commissions.
Broker Compensation
How brokers and advisors are paid shapes the advice employers receive. These FAQs cover commissions, fee arrangements, and the federal compensation-disclosure rules.
What is the CAA broker compensation disclosure?
Under the Consolidated Appropriations Act, 2021, brokers and consultants must disclose in writing, before the employer signs the contract, all direct and indirect compensation they expect to receive in connection with a group health plan. It’s designed to surface conflicts of interest and help employers judge the value they’re getting.