Self-insurance is not familiar or welcome territory to most health insurance brokers. The average broker has 4 powerful disincentives to offer ACTIN to his or her clients as an option to fully insured plans.
- Self-insurance in the small group market, where most brokers work, is rare and, therefore, self-insured products are unfamiliar to most brokers. It’s hard to sell or explain what you don’t understand.
- Self-insurance is price transparent--every expenditure an employer pays in a self-insured plan is a line item, including brokers’ fees. Price transparency is not welcome to brokers because 4.5% of an insurance premium buried in that figure is a lot of money.
- Insurers pay an “over-ride” effectively increasing brokerage commissions. Employers do not.
- The commission for self-insured products is generally less than for insured products because after a company leaves the insured market there is less for a broker to do--no more annual medical applications and then picking the cheapest plan.
ACTIN works with hand-picked brokers. We pick brokers the same way we pick doctors. Doctors work for their patients, not for ACTIN. However, ACTIN and our contracted doctors share the same objective for our Members and their patients—the best medical outcome at the lowest possible cost. In the same way, the brokers we select work for the employer, not for ACTIN. We find a broker in a community whose objective for his or her clients is to find the best product for them, whether it is ACTIN or another plan. We work with brokers who have a deep understanding of self-insurance as well as insurance so that employers are presented with a full range of options. We coordinate with the broker so that if the employer picks ACTIN, the employer is offered a seamless experience.