According to a new law, Section 202 of the Consolidated Appropriations Act, effective January 1, 2022, all insurance agents who market or sell employee benefit plans must notify clients of their commissions earned from monthly premiums. This amount is expressed as a percentage for the premiums paid, and disclosure is similar to that required of real estate agents. 

Employers who wish to provide employees with a group benefits plan can purchase a plan straight from insurance providers or use a broker to assist them. Plans and premiums are established the same, no matter how you choose to enroll in one. As for the premium amount, those are set by each insurance company, and are approved by the Department of Insurance. If you enroll directly through an insurance provider rather than through an agent, the provider simply retains the commission. 

In other words, you do not pay more for using an insurance agent to help you sort through your options and choose a plan. At Bay Area Health Insurance Marketing, we accept the standard commission from all insurance providers. However, we are still required to notify you as to the amount of that commission, expressed as a percentage of your monthly premiums. 

These disclosures help employers to understand the expenses associated with their group health benefits and assist them with making decisions related to insurance providers. 

You should receive a notice regarding these disclosures, along with a form that we ask you to fill out and return to us. This helps us to note that you have received the required disclosures, and that all obligations have been fulfilled. 

If you have any further questions about this process, please don’t hesitate to call us for assistance.