Employee Benefits Broker RFP Guide: 20 Questions to Ask

Good reasons to run a broker RFP

Renewals keep rising without a clear explanation

Service has slipped: slow answers, unresolved claims, missed deadlines

You have grown past 50 or 100 employees, or into new states

You are leaving a PEO and need your own plan

A merger or new ownership is combining two benefits programs

It has been three to five years since anyone compared

What to send brokers

Give every broker the same package so the answers are comparable. Keep employee-level detail for finalists.

A one-page summary: headcount, locations, plan year, current carrier and funding type

A census summary by age band and coverage tier (employee-level census for finalists only)

Current plan summaries and contribution strategy

The current renewal and, if available, a claims experience or large-claim report

Your timeline, decision process and the services you expect

This list of questions, with a response deadline

20 questions to ask any broker

Ask every finalist the same 20 questions, in writing. We answer them too. For companies with 250 or more employees, see also employee benefits for 250 to 1,000+ employees.

Compensation

How are you paid on our plan: commission, fees, or both? Please list every source.
Do you receive bonuses, overrides or other indirect compensation from any carrier or vendor you might recommend?
Will you provide the written compensation disclosure required for ERISA group health plans before we sign?
If we wanted a flat fee instead of commission, would you offer one?

Market access and renewals

Which carriers and funding types would you take our plan to, and why?
Walk us through your renewal process and timeline, starting from how many days before the effective date.
How do you analyze a renewal before recommending we accept, negotiate or market it?
Show us a sample of the renewal analysis you would deliver, with fictional data.

Service model

Who works on our account day to day, and who covers when they are out?
What response time do you commit to for employer questions and for employee claim problems?
How do you support open enrollment: meetings, employee guides, enrollment technology?
How do you escalate a claim or billing problem with the carrier?

Compliance and data

Which compliance tasks do you handle, coordinate, or leave to us or a partner (Form 5500, ACA reporting, notices)?
How do you keep us on schedule for annual filings and attestations?
How do you collect and store our census and claims information, and who can access it?
Will you sign a confidentiality agreement, and what happens to our data if we leave?

Transition

What does the first 90 days look like if we appoint you?
How do you handle a mid-year broker change with our current carrier?
What do you need from our current broker, and what do you do if it is slow to arrive?
How will you measure whether the change was worth it at the first renewal?

A simple scoring table

Score each finalist from 1 to 5 on every row, multiply by the weight, and add it up. Adjust the weights to your priorities.

A starting point, not a standard. Weights total 100%.
Criterion	Weight	What a 5 looks like
Renewal analysis	20%	A written analysis of cost drivers and options, not just a carrier spreadsheet
Service model	20%	Named contacts, a backup, and response times they commit to in writing
Compensation transparency	15%	Every source of pay disclosed in writing, without being asked twice
Market access	15%	Several carriers and funding types considered, with reasons for each
Compliance support	10%	A clear list of what they handle, coordinate or leave to you
Data handling	10%	A secure way to send files and a clear answer on who can see them
Transition plan	10%	A specific first-90-days plan with your current carrier

Making the change smoothly

A broker change can often be handled with a broker of record letter on your letterhead, without changing your plan or your employees’ ID cards. Carrier rules, effective dates and what information moves with the change vary, so the new broker should confirm them with your carrier before you send anything, and tell you what, if anything, changes for your employees.

Common questions

How often should we review our benefits broker?

Many employers look formally every three to five years, and any time renewals rise without a clear explanation, service slips, or the company changes size, ownership or states.

Do we have to change plans to change brokers?

Usually not. A broker change is often handled with a broker of record letter while the plan stays in place. Carrier rules and timing vary, so ask each finalist how they would handle the transition with your carrier.

Should we send employee-level data with the RFP?

Not at the first stage. Send a census summary and plan documents; share employee-level detail only with finalists, through a secure method, and under a confidentiality agreement if you want one.

Can a broker see our claims data?

With your authorization and the carrier’s process, many brokers can review claims experience or large-claim reports. Ask each broker how they protect that information.

How to evaluate an employee benefits broker