How To End The Incentive To Look The Other Way
The problem nobody names out loud - Most brokers are paid a percentage of premium. When your premiums go up, their commission goes up automatically. Plus don’t forget the bonus programs and other incentives that can tilt recommendations toward higher-priced options. That’s a built-in conflict between your goal (pay less for better care) and a broker’s paycheck.
Quick math - If your medical premium is $1,000,000 and the commission is 5%, that’s $50,000. After an 18% increase, the broker’s pay becomes $59,000—without doing anything differently. Your budget strains. Their compensation climbs.
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Why this matters even more now Premiums have been rising again, squeezing both employers and employees. In 2024, the average family premium reached $25,572—up 7% year over year. In 2026 it’s projected at 9%. If your advisor is paid on premium, rising costs quietly widen their pay envelope.
What changed on transparency Federal rules now require health plan brokers/consultants to disclose all direct and indirect compensation above certain thresholds and to provide details a fiduciary can evaluate. If you haven’t received a clear, written disclosure tied to your plan year, you can (and should) ask for it.
A 10-Minute Diagnostic You Can Run This Week
- Ask your current broker for their compensation disclosure for this plan year (all direct and indirect comp).
- Request a list of any carrier bonuses, overrides, or marketing allowances tied to your business.
- Compare last year’s compensation to this year’s projected compensation after renewal. Did their pay rise as your premiums rose?
- Confirm whether recommendations were modeled net of all broker incentives and rebates.
- Decide whether a flat-fee, commission-offset arrangement would better align results with your goals.
The WHIA Difference: Flat Fee. Full Alignment.
No premium-based commission. We work on a transparent flat fee. Our compensation is the same, regardless of which carrier, network, or funding strategy you choose. That removes the built-in incentive to accept status-quo increases or stop the search early. Our pay doesn’t depend on higher premiums, it depends on outcomes.
Commission-offset policy. If a carrier builds in any commission, we credit or offset it against our flat fee so you don’t pay twice. The goal is simple: zero misaligned incentives.
Ready to End Misaligned Incentives?
If you want a Compensation Transparency Audit + Flat-Fee Proposal, just call or email me (info below). We’ll review your current arrangement, credit any embedded commissions, and present a flat-fee scope that’s tied to outcomes—not premium size.
Let’s Talk Soon,