Broker vs Direct Bill premiums?

[Crispix]

What is the name of your state: CA

I am a small business owner. For years, we have used the same HMO (Kaiser) without a broker in the middle -- it's a direct pay.

I have a friend who is an insurance broker and wants me to switch our Broker of Record from Kaiser to him. I understand that my premium will not change this year even as they pay him a monthly commission.

In subsequent years, however, can and will Kaiser increase my premiums to cover the cost of the broker fee? They already raise my rates each year, of course, but will they raise them by an amount greater than if I do not have a broker receiving a commission?

The broker claims it is against state law to charge different rates with or without a broker, and that Kaiser will simply "eat the commission". I find this hard to believe, that Kaiser would willingly give up 7% of their profit to give to a broker.

Is there indeed such a law? Thanks to anyone who can provide insight.

[seniorjudge]

Based SOLELY on your post, I don't trust your broker.

[momm2500]

something sounds fishy with your broker friend. there is no need to have a broker! you are doing just fine with what you are doing

[Crispix]

He's trying to get my business, I don't blame him for that. I can tell he honestly believes that this will not cost me any more than I am paying now. Kaiser even confirmed that my rates will not increase this year. I just can't get a straight answer on future increases.

He is a friend, and if there was any way I could 100% guarantee that naming him as my Broker of Record would not cost me money in the long run, I'd be happy to let him handle the account.

But it sounds like there really is no law or regulation that will prevent Kaiser from raising my rates to cover his fee in future years. He'll just have to be disappointed.

Thanks for the reality check.