An employee benefits broker is a licensed insurance professional who helps employers, typically small to mid-size, navigate and select health and welfare benefit plans. Historically compensated through carrier commission, brokers occupy one of the highest-leverage gatekeeper positions in the employer healthcare market.
Section 202 of the CAA (2021) amended ERISA §408(b)(2)(B) to require brokers expecting $1,000 or more in compensation to disclose it in writing before the arrangement is entered into or renewed, in effect since December 27, 2021. Commission structures vary meaningfully by group size: small fully-insured groups typically carry a 4-7% commission, mid-size groups 3-5%, large groups 2-4%, with self-funded administration billed as $8-25 PEPM or 2-4% of expected claims. Roughly 72% of brokers serving mid-size employers still operate on commission, per NAHU's 2025 Broker Survey.
Brokers are historically compensated through carrier commission, a percentage of premium paid by the insurer rather than the employer directly.
The disclosure requirement under ERISA Section 408(b)(2)(B), as amended by the CAA, has applied to every new or renewed broker/consultant arrangement with a group health plan since December 27, 2021.
Yes. Brokers are frequently the primary gatekeeper to an employer client, and one who is unfamiliar with or opposed to a solution can prevent it from ever reaching the employer's decision-makers.
Every term here points to the same gap in healthcare access. See how the CareStation closes it.
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