Quick answer: A good benefits broker should offer full transparency into their commission structure, proactive year-round carrier negotiation, direct access to your claims and utilization data, and measurable time savings for your HR team. If a broker only contacts you at renewal and can't clearly explain how they're compensated, that's a sign to look elsewhere.
1. Ask exactly how they get paid
Most brokers are compensated through carrier commissions built into your premium, though some charge a flat consulting fee instead. Either model can work, but a broker who gets vague or defensive when asked directly is a red flag. You should get a plain, specific answer.
2. Look for proactive contact, not just renewal check-ins
If the only time you hear from your broker is 60 days before your plan year ends, they're managing a transaction, not a relationship. Year-round strategy, ongoing carrier negotiation, and regular check-ins are what separate a broker who's actually working for you from one who's just processing your renewal.
3. Check whether you get access to your own data
You should be able to see your own claims and utilization data in a clear, plain-language format. If your broker treats this data as something only they can interpret, you don't have real visibility into your own plan.
4. Ask what they've actually negotiated for you recently
A broker's job includes actively fighting for better rates and plan terms, not just presenting whatever renewal number comes back from the carrier. Ask for specific examples of negotiations they've won on your behalf in the last year.
5. Evaluate how much time they actually save your HR team
A broker should reduce your team's workload, not create more of it. If your HR team is regularly chasing carriers for answers, untangling billing errors, or explaining plan details the broker should have covered, that's time being lost, not saved.
6. Consider their size relative to yours
A broker too small may lack negotiating leverage with carriers. A broker too large may treat a mid-market account as low priority. Look for a broker whose typical client size matches yours, so you're not competing for attention against much bigger accounts.
A quick checklist
- Can they explain their commission structure clearly and specifically?
- Do they contact you proactively, not just at renewal?
- Can you access your own claims and utilization data?
- Can they show specific recent wins in carrier negotiations?
- Does working with them reduce your HR team's workload?
- Is your company a good fit for their typical client size?
Nearly 1,000 companies have evaluated their broker against a version of this exact list and made the switch to Bennie, most citing up to 30 hours a month back for their HR team as the difference that mattered most.
FAQ
What questions should I ask a benefits broker before hiring them? Ask how they're compensated, how often they'll proactively contact you outside of renewal, whether you'll have direct access to your own claims data, and for specific examples of carrier negotiations they've won recently.
What's a red flag when evaluating a benefits broker? Vagueness about commission structure, contact only around renewal season, and no clear examples of proactive carrier negotiation are all signs the relationship may be more transactional than strategic.
Does a bigger broker mean better service? Not necessarily. A broker whose typical client size closely matches yours often provides more attentive service than a much larger firm where your account may be a lower priority.
How much time should a good broker save my HR team? This varies by company size and current broker performance, but companies switching to a more proactive broker relationship commonly report meaningful time savings, in some cases up to 30 hours per month, freed up from administrative back-and-forth.
We built our whole model around this checklist. If you want to see how your current broker stacks up, let's talk.
About Bennie
Bennie is a modern employee benefits firm dedicated to transforming how employers design, manage, and deliver benefits. By combining world-class brokerage services with user-friendly technology, Bennie helps organizations lower costs and streamline administration while giving employees a centralized platform to navigate their healthcare. Headquartered in New York City, Bennie is licensed in all 50 states.
