FREQUENTLY ASKED BENEFITS QUESTIONS

Q:  Dear Expert,

I was talking with a friend the other day and they were praising the great coverage they get through their employer’s insurance company while I was complaining about the coverage I got through my employer’s insurance company. While we both work for fairly large employers, why doesn’t my employer use my friend’s insurance company and is there a difference between insurance companies?

Signed,
Quality Minded

A:  Dear Quality Minded,

While I can’t answer why your employer uses a certain insurance company to deliver your group benefit plan, I can help shed some light on the situation. Larger employers commonly design their group benefit plan, often with the help of experts like me. The design of each group benefit plan is therefore somewhat unique to each company and stems from important decisions involving such issues as culture, need, competitiveness, and affordability. To the point, it is no simple task. While each insurance company is also unique in their approach and quality of service, with larger plans (covering over 200 people), the insurer acts to operate and administer the plan designed by the employer. Most employers go through a lengthy process to choose your insurance company, based on many criteria from cost to service. Your friend’s great coverage is more likely the result of the plan offered by their employer and not the insurance company — of course, good service from the insurer is always part of a great group benefit plan. To really get to the bottom of your question, take a moment and compare yours and your friend’s benefit plans — you may see that is not an insurer comparison but an employer one.

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