Your Broker Doesn’t Love You! They Love the Money You Give Them!

The Illusion of Loyalty

Most companies think their benefits broker is a trusted partner, someone who “has their back.” After all, they show up to your renewal meeting with donuts, a polished slide deck, and promises that they “negotiated the best rates possible.”

But here’s the truth: that broker doesn’t work for you. They work for the carrier that pays them. Their loyalty lies where their commissions flow.

How the Game Really Works

In the traditional benefits world, brokers are paid a percentage of your premium, often 3% to 7%. That means the more your costs go up, the more they make.

Let that sink in.

You’re celebrating a “great relationship” with someone who profits when your healthcare costs rise. It’s not a partnership, it’s a cleverly disguised dependency.

They’ll tell you your renewal increase is “standard for the market.” They’ll throw in a wellness program, maybe a voluntary dental plan, but they’ll never tell you how to get off the treadmill altogether. Why would they? That would end their payday.

The Showmanship Trap

Most brokers are trained entertainers. They know how to sound strategic, look

professional, and build rapport. Their job isn’t to save you money, it’s to keep you feeling like they’re irreplaceable.

It’s not love. It’s loyalty theater.

They’ll invite you to golf tournaments, holiday dinners, and “client appreciation events”, but behind the scenes, they’re getting bonuses, overrides, and incentive trips from the carriers you’re overpaying. They Love your money!

What Real Alignment Looks Like

A true benefits advisor should be paid for performance — not premiums. They should be vendor-agnostic, transparent about costs, and focused on aligning incentives with outcomes.

That means:

• Fixed, flat-fee compensation, not percentage commissions

• Open-book cost transparency, even if it is open, they are making way too much, and not saving you any money!

• Offer alternative healthcare solutions that actually reduce spend and increase employee satisfaction

If your broker isn’t doing those things, you’re not a client, you’re a cash cow revenue stream.

The Takeaway

• Don’t confuse charisma for care.

• Don’t mistake a Christmas card for advocacy.

• If you want someone who actually serves your company’s best interest, hire someone whose paycheck depends on your savings, not your spending.