Large group fully insured transition to broker service fees

We want to provide updates you can share with your large group fully insured clients about changes we’re making to the way broker service fees are reflected on two important documents provided to groups: the Premium Rates by Group and the Healthcare Rate Acceptance.

Premium Rates by Group exhibit changes

Beginning with July 2016 new business and renewals, broker service fees will be added to the Premium Rates by Group exhibits for medical and dental products. This change will enhance the exhibits by more completely reflecting the total amount of fees employers are required to pay. The line items will be:

  • New or renewal premium rate
  • Broker service fee
  • Total premium rate plus the broker service fee

Groups will be able to calculate their employee contribution using the total premium rate plus service fee. In cases where the Broker Service Fees Agreement has not been signed prior to the creation of the exhibits, estimated service fees will be displayed on the exhibits based on information received from the broker. In these cases, the estimated fees displayed on the exhibits may not match the medical and dental premium rates plus service fees on Sections 2 and 3 of the premium bill.

Healthcare Rate Acceptance document changes

The Healthcare Rate Acceptance document (commonly referred to as the Sales Amendment) will not show the broker service fees, but will explain that the premium rates shown do not include broker service fees. We are evaluating ways to add the service fees to the premium rates in the future.

As always, we value your feedback and that of our mutual clients. If you have any questions or concerns about these changes, please contact Broker Relations at