Broker Compensation Disclosure
A new law passed that requires health insurance brokers to disclose that they earn compensation for services performed. You do not need to take any action. This notice is being sent as a compliance measure. The Consolidated Appropriations Act (CAA) of 2021 requires health insurance brokers and consultants to disclose direct and indirect compensation earned on health plans to plan fiduciaries, for contracts entered into or renewed on, or after, December 27, 2021. The following constitutes EVCO Insurance Services (the “Broker”) disclosure of direct and indirect compensation the Broker will receive or reasonably expects to receive for the plan year in connection with the below referenced services it provides to you.
- Conduct renewal analysis
- Negotiating with carriers
- Enrollment services (eligibility, onboarding, additions and deletions, annual open enrollment)
- Serve as a liaison between group client and the carrier
- Assist in billing collection and resolution
- Participate in eligibility maintenance and answer plan related questions
- Assist in preparation of insurance related forms (i.e. SBC, Section 125 POP, etc)
- Facilitate TPAs and other service providers (i.e. COBRA, FSA, etc)
- Provide and service HRIS online benefit platform(s)
- Coordination of value-added services (i.e. HR Support)
Coverage or Service
Carrier/Vendor Commission %
Medical
5%
Ancillary: Dental, Vision, etc
10%
Other Compensation
The Broker may earn additional compensation from any of the above referenced insurers, vendors, or other third parties that cannot be calculated as of the time this disclosure is made to you, or prior to the date the Broker’s executed, extended, or renewed contract with you is effective. For example, the Broker may receive additional compensation contingent upon certain conditions being met, including, but not limited to, profitability, growth, churn/retention, or the volume of services provided.
Compensation may be in the form of additional commissions, bonuses or benefits (“compensation”). Furthermore, we may receive corporate sponsorships for webinars, training or other programming we provide for you and other clients, or for our own internal trainings. Whether we receive any of the above referenced compensation, or how much that compensation may be, cannot be discerned at this time.
Should you have any questions about any of the above information or require additional information, please don’t hesitate to contact help@evcoinsurance.com. The above information is accurate to the best of my knowledge as of the date this disclosure is executed above.
