Why You Should NOT Market your Benefit Plan

Many business owners make a point of reviewing their employee benefits plan every couple years or so. This involves engaging brokers and consultants and pitting them against each other to see who presents the best options from other insurers. This is normally done in an attempt to reduce costs, but in the end it can be a giant waste of time and resources. Here is why you should NOT market your benefit plan.

“Lower Pricing”

If you ask 5 brokers to present group benefit options to you, there will always be one that is presenting a lower price than the one you are currently paying. But does that really represent a cost savings in the long term? We have all been enticed by low introductory offers for internet/cable/phone plans only to find that in the long run, the prices work out to be the same. If you look at a 5 year horizon, most insurers will end up with similar costs. Even if one is lower in the short term.

Employee Confusion

Communication with employees is a key aspect of any change to their benefit plan. Often this is overlooked and constant changes can appear in a negative light and be perceived as instability within the company.


Every time you switch insurers there are costs you need to be aware of. First is the loss of the reserve with your current insurer. Each insured health and dental plan has a reserve of money used for paying claims if the client was ever to leave the carrier. This reserve accounts for an additional cost of 8-10% of your health and dental premiums. There is also the internal costs associated with administrating the change. Someone has to re-process all those forms and it takes them away from more productive tasks.

Instead of “playing the field” every year or two, we suggest selecting a consultant that that not only stays current with changing legislation and industry trends, but also aligns their offerings with the goals set by your company.

DENT prefers to build a long-term relationship with its clients in order to find a platform that fits your company’s vision. Once the base plan is established we can then add on supplementary services and programs designed to build morale, and give you the competitive advantage necessary to attract top talent. To learn more about why you should NOT market your benefit plan, contact the experts at DENT.

The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.

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