Small business
How do you change your group's broker? With a one-page letter.
Figures on this page checked . Medicare and marketplace numbers reset every year — if you are reading this long after that date, call and we will tell you what moved.
What is a broker of record letter?
It's a letter on your company's letterhead, signed by an owner, an officer or the person who manages the plan, that tells a carrier who represents your group. Ours names Grove Benefit Advisors as your broker of record, with your advisor named as the person who looks after your group day to day.
You send one letter to each carrier, naming your group or policy number and the coverage it covers. A company with medical through one carrier and dental through another signs two letters, which is normal. Carriers handle them separately.
What changes, and what stays the same?
Only your broker changes. For the coverage named in the letter:
- Your plan, your carrier and your rates stay exactly as they are.
- Your employees keep the same ID cards, the same doctors and the same coverage. They don't need to do anything.
- Your company pays nothing for the change. A broker is paid by the carrier, and the premium doesn't move when the broker does.
- Your advisor becomes the person the carrier talks to about your group: renewals, billing questions, claims problems and plan changes.
- Your current broker is replaced for the coverage named in the letter. Coverage the letter doesn't name stays with whoever has it now.
When does it take effect?
Usually on the first of the month after the carrier processes the letter. You choose an effective date when you sign, and we suggest the first of next month because that's the date most carriers work to.
Some carriers take longer to process a change than others, so the date on the letter is the earliest it can start rather than a promise. Your advisor will tell you when each carrier confirms it.
Who should sign it?
An owner or officer of the company, or the person who manages the plan, such as an HR or benefits manager. Carriers want the letter to come from somebody who can speak for the group, and they read the name and title under the signature to decide.
Carriers also want it on your letterhead, because that shows your company wrote it. If you add your logo, it goes at the top of the letter. Without one, the letter opens with your company's legal name, address and phone, set the way a letterhead would be.
How do you sign one here?
Fill in one screen: your company, who's signing, the carriers and policy numbers, and your advisor. Then sign by drawing your signature with a finger or a mouse, by typing your name, or by printing the letters and signing them in ink.
We make one letter for each carrier, signed in one pass, each with a page recording who signed it and when. You get copies to keep, and your advisor sends them on.
Sign a broker of record letter
A few carriers prefer their own short form as well as the letter. If yours is one of them, your advisor will send it to you for one more signature.
Questions employers ask about changing brokers
Will changing our broker change our plan or our rates?
No. A broker of record letter changes who represents your group, not the plan. Your carrier, your benefits, your premium and your renewal date all stay the same.
Does it cost anything to change brokers?
No. Your company pays nothing to sign the letter or to work with us. A broker's pay comes from the carrier, and the premium is the same whoever the broker is.
Do our employees need to do anything?
No. Their ID cards, their doctors and their coverage don't change, and nobody has to re-enroll. Most employees never notice, apart from having a new person to call.
Do we have to tell our current broker?
You don't have to. Carriers usually let the previous broker know once they process the change. Many employers send a short note as a courtesy, and that's up to you.
What if a carrier wants its own form?
A few carriers have their own broker of record form. Your advisor will send it to you to sign as well, and it takes a minute. The letter still goes with it.
Can we sign it on paper instead?
Yes. Choose Print on the signing screen, and you'll get the same letters with a line for your signature. Sign them in ink and send them back to your advisor, by email or by mail.