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This is based on the regulation that brokers can't be better than one another on the basis of price. You can't give "kickbacks" to your customer that make you a

This is based on the regulation that brokers can't be better than one another on the basis of price. You can't give "kickbacks" to your customer that make you appear to be a better option. The health insurance companies get the same premium regardless of broker (1), so this is about inter competition between the brokers, not insurers. (1) OK, well in the large group segment you could make an argument that a sufficiently large broker could use that pressure to negotiate better rates with the insurance companies, but I don't know if that's the tack being taken here.

beambot 10y ago
Why do we need the brokers at all?
- CGamesPlay 10y ago
  Zenefits doesn't want to be an insurance company, they would much rather be a broker. But to actually answer your question, a broker is a tool for the consumer / provider to facilitate sales. If there's a better replacement tool, we don't need brokers. For example, travel agents used to be the best tool to find and purchase flights, but they have been replaced by Kayak and competitors.
  - beambot 10y ago
    I know what brokers ostensibly do. I'm asking: Why do we need healthcare insurance brokers in this day and age? If the answer is "we might not", then entrenched middlemen shouldn't be propped up by outside lobbyists, regulations, or "because, jobs." In fact, you could probably make a real case that middlemen are directly responsible for substantial markup on healthcare insurance costs!
    - Broken_Hippo 10y ago
      You could make that last case: However, I think a broker is probably the best way to compare different insurance plans when buying from the market instead of through your employer. For example, take 3 insurance shoppers. One has asthma, the second diabetes, and the third has MS. The three have vastly different needs for care and coverage, and the key to matching up the needs is the broker. The need for brokers could theoretically be eliminated, but that would take some government software and regulation and whatnot to get done.

beambot 10y ago

Why do we need the brokers at all?

CGamesPlay 10y ago
Zenefits doesn't want to be an insurance company, they would much rather be a broker. But to actually answer your question, a broker is a tool for the consumer / provider to facilitate sales. If there's a better replacement tool, we don't need brokers. For example, travel agents used to be the best tool to find and purchase flights, but they have been replaced by Kayak and competitors.
- beambot 10y ago
  I know what brokers ostensibly do. I'm asking: Why do we need healthcare insurance brokers in this day and age? If the answer is "we might not", then entrenched middlemen shouldn't be propped up by outside lobbyists, regulations, or "because, jobs." In fact, you could probably make a real case that middlemen are directly responsible for substantial markup on healthcare insurance costs!
  - Broken_Hippo 10y ago
    You could make that last case: However, I think a broker is probably the best way to compare different insurance plans when buying from the market instead of through your employer. For example, take 3 insurance shoppers. One has asthma, the second diabetes, and the third has MS. The three have vastly different needs for care and coverage, and the key to matching up the needs is the broker. The need for brokers could theoretically be eliminated, but that would take some government software and regulation and whatnot to get done.