Florida small businesses can purchase group health insurance two ways: through a licensed broker (who shops multiple carriers) or directly from a single carrier (Florida Blue, UnitedHealth, Aetna, Cigna, Ambetter). Broker compensation is built into the premium — it's the same price either way. The trade-off is service: brokers shop annually, advocate at renewal, handle COBRA notices, and explain coverage; direct purchase means doing all that yourself or relying on the carrier's call center. For most Florida small businesses, the broker path delivers more value at the same cost.
Carrier-filed rates with the FL Office of Insurance Regulation include broker compensation. Whether you buy through a broker or direct, the carrier collects the same premium. Broker compensation (typically 4-6% of premium for small group) is paid by the carrier — never as a separate fee on top of premium.
| Premium Component | Through Broker | Direct Purchase |
|---|---|---|
| Carrier filed rate | Same | Same |
| Broker commission (built into rate) | 4-6% (paid by carrier) | 4-6% (carrier keeps if no broker) |
| Effective premium to employer | Same | Same |
Direct purchase does NOT save the broker fee — the carrier just retains it as additional margin.
| Service | Broker | Direct Carrier |
|---|---|---|
| Multi-carrier annual quote shop | Yes (3-5 carriers) | No (single carrier only) |
| Plan design comparison | Yes (across carriers and tiers) | Carrier's options only |
| Renewal advocacy | Yes (negotiate rates, plan-design) | None — accept renewal as offered |
| Open enrollment support (employee meetings) | Yes (in-person, virtual) | Online materials only |
| COBRA / mini-COBRA admin | Often included or coordinated | Carrier or self-managed |
| Section 125 plan document | Often provided | Self-arrange |
| Compliance support (Form 5500, ACA reporting) | Yes | Self-arrange |
| Claim escalation help | Yes (broker has carrier contacts) | Call center only |
| Multi-carrier dental/vision/life shop | Yes | No |
Carrier-set commissions for small group are generally fixed (4-6% of premium). You typically cannot negotiate the commission down. Some brokers offer fee-based services (rare for small group) where you pay a flat fee and they accept a smaller commission — net savings depend on your size.
Yes — you can appoint a broker of record at any time by signing a 'Broker of Record' letter directing the carrier to recognize the broker. The carrier shifts commission payment to the broker going forward. No premium change.
No — the carrier offers the same plans either way. Broker advantage is in seeing options across multiple carriers, plus support services. The plans are identical whether brokered or direct.
A licensed Florida broker can shop multiple carriers at no extra cost.
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